Section 230-3-6 - Financial Responsibility RequirementsA. Except as provided in subsections (7) and (10) of section 48-2704 of the Act, and in sections 003(G) and 009 of these regulations, each professional employer organization or professional employer organization group shall provide the Department with evidence of one of the following: 1. If the positive working capital of the professional employer organization is at least one hundred thousand dollars, proof of such positive working capital, as reflected in the financial statements submitted to the Department, as provided in section 004 of these regulations, with the initial registration and with each annual renewal; or2. If the positive working capital of the professional employer organization is less than one hundred thousand dollars, the professional employer organization shall submit a bond, certificate of deposit, escrow account, or irrevocable letter of credit in an amount of not less than one hundred thousand dollars, at the time of initial registration, and shall submit proof, at the time of each annual renewal, that the bond, certificate of deposit, escrow account, or irrevocable letter of credit remains in effect. B. If the financing statement submitted to the Department, in accordance with section 004 of these regulations, indicates that the professional employer organization has a deficit in working capital, the professional employer organization shall submit a bond, certificate of deposit, escrow account, or irrevocable letter of credit, in an amount that is not less than one hundred thousand dollars, plus an amount that is sufficient to cover that deficit.C. Enforcement of Financial Commitment. 1. Proof of the commitment to meet the financial responsibility requirements described in subsection (A) of this section shall be in a form approved by the Department, and shall be held in a depository designated by the Department, and shall secure the payment by the professional employer organization or professional employer organization group of any wages, salaries, employee benefits, worker's compensation insurance premiums, payroll taxes, unemployment insurance contributions, or other amounts that are payable to or with respect to an employee performing services for a client if the professional employer organization or professional employer organization group does not make those payments when due.2. Proof of the commitment to meet the financial responsibility requirements described in subsections (A) and (B) of this section shall be established in favor of or be made payable to the Department, for the benefit of the state and of any employee to whom or with respect to whom the professional employer organization or professional employer organization group does not make a payment described in this subsection when due.3. The professional employer organization or professional employer organization group shall file with the Department any agreement, instrument, or other document that is necessary to enforce the commitment to meet the financial responsibility requirements described in subsections (A) and (B) of this section against the professional employer organization or professional employer organization group, against any relevant third party, or both.230 Neb. Admin. Code, ch. 3, § 6
Amended effective 6/7/2017.