Indiana § 27-16-7-1 - Requirements of co-employment relationships

Full text of Indiana Indiana Code § 27-16-7-1 — Requirements of co-employment relationships, with citation guidance and answers to common questions.

§ 27-16-7-1. Requirements of co-employment relationships

Sec. 1. Except as provided in a professional employer agreement, the following apply to a co-employment relationship:

(1) The client:

(A) may exercise and enforce all rights; and

(B) is obligated to perform all duties and responsibilities;

that otherwise apply to an employer in an employment relationship, that are allocated to the client by the professional employer agreement and this article, and that are not specifically allocated to the PEO by the professional employer agreement and this article.

(2) The PEO:

(A) may exercise and enforce only the rights; and

(B) is obligated to perform only the duties and responsibilities;

that are required of the PEO or specifically allocated to the PEO by this article and the professional employer agreement.

(3) Unless otherwise expressly agreed by the PEO and the client in the professional employer agreement, the client retains the exclusive right to direct and control the covered employees as necessary to:

(A) conduct the client's business;

(B) discharge the client's fiduciary responsibilities; or

(C) comply with licensure requirements that apply to the client or the covered employees.

As added by P.L.245-2005, SEC.7.

Source: official Indiana text · Last verified 2026-08-27

Frequently Asked Questions About Indiana § 27-16-7-1

What does Indiana Code § 27-16-7-1 cover?

Section 27-16-7-1 ("Requirements of co-employment relationships") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Indiana § 27-16-7-1?

A common citation format is "Indiana Code § 27-16-7-1" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Indiana law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.

How does Indiana § 27-16-7-1 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.