230 Neb. Admin. Code, ch. 3, § 3

Current through September 17, 2024

Section 230-3-3 - Registration

A. Registration Required to Provide Services as a Professional Employer Organization or Professional Employer Organization Group.

1. A person engaged in the business of providing professional employer services pursuant to co-employment relationships in which all or a majority of the employees of a client are covered employees shall be registered under the Act.

2. A person who is not registered under the Act shall not offer or provide professional employer services in this state and shall not use the names PEO, professional employer organization, staff leasing company, employee leasing company, administrative employer, or any other name or title representing professional employer services.

B. Date When Registrations Are Due.

1. Each professional employer organization operating within this state as of January 1, 2012, shall complete its initial registration not later than one hundred eighty days after January 1, 2012. Such initial registration shall be valid until one hundred eighty days from the end of the professional employer organization's first fiscal year that is more than one year after January 1, 2012.

2. Each professional employer organization not operating within this state as of January 1, 2012, shall complete its initial registration prior to initiating operations within this state.

C. Unregistered PEOs. If a professional employer organization not registered in this state becomes aware that an existing client not based in this state has employees and operations in this state, the professional employer organization shall either:

1. Decline to provide professional employer services for those employees; or

2. Notify the Department within five business days of its knowledge of this fact and file a limited registration application under this section or a full registration if there are more than fifty covered employees.

D. Interim Operating Permit. The Department may issue an interim operating permit for the period that a registration application is pending, if the professional employer organization:

1. Is currently registered or licensed by another state; and

2. The Department determines it to be in the best interests of the potential covered employees to issue an interim operating permit to such professional employer organization.

E. Registration Application: Required Information. Each applicant for registration under the Act shall provide the Department with the following information:

1. The name or names under which the professional employer organization conducts business;

2. The address of the principal place of business of the professional employer organization and the address of each office it maintains in this state;

3. The professional employer organization's taxpayer or employer identification number;

4. A list by jurisdiction of each name under which the professional employer organization has operated in the preceding five years, including any alternative names, names of predecessors and, if known, successor business entities;

5. A statement of ownership, which shall include the name and evidence of the business experience of any person that, individually or acting in concert with one or more other persons, owns or controls, directly or indirectly, twenty-five percent or more of the equity interest of the professional employer organization;

6. A statement of management, which shall include the name and evidence of the business experience of any individual who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the professional employer organization; and

7. A financial statement setting forth the financial condition of the professional employer organization or professional employer organization group, as provided in Section 004 below.

F. Renewal of Registration. Within one hundred eighty days after the end of a registrant's fiscal year, a registrant shall renew its registration by notifying the Department of any changes in the information provided in such registrant's most recent registration or renewal. A registrant's existing registration shall remain in effect during the pendency of a renewal application.

G. Limited Registration.

1. A professional employer organization is eligible for a limited registration under the Act if such professional employer organization:

a. Submits a properly executed request for limited registration on a form provided by the Department;

b. Is domiciled outside this state and is licensed or registered as a professional employer organization in another state;

c. Does not maintain an office in this state or directly solicit clients located or domiciled within this state; and

d. Does not have more than fifty covered employees employed or domiciled in this state on any given day.

2. A limited registration is valid for one year and may be renewed.

3. A professional employer organization seeking limited registration under this section shall provide the Department with information and documentation necessary to show that the professional employer organization qualifies for a limited registration.

4. Applicants for limited registration are not required to comply with the financial responsibility requirements set forth in section 48-2705 of the Act and in section 006 of these regulations.

230 Neb. Admin. Code, ch. 3, § 3

Amended effective 6/7/2017.