It can mean that, but normal people don't often use it that way. "Peers" has a legalistic sound to it. Better words are "co-workers" and "colleagues". "Colleague" works best in an office setting, whereas "co-worker" works best in a production or factory setting.

Yes, a 'peer' is someone who is the same level as you...it could be at work or in school. For work, 'colleagues' is another way to say it. Peer is also a verb...to peer or to look at someome, so that might be the confusion.

Peer means someone who is the same group as you. The group could be defined any number of ways: Coworkers, classmates, fellow citizens, etc. In the U.S. people are tried by a 'jury of their peers', which just means fellow-citizens in that case.