23-614

23-614. Employing unit; temporary services
employer; professional employer organization; definitions

A. "Employing unit" means an individual or type of organization, including
a partnership, association, trust, estate, joint-stock company, insurance company or
corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee
or successor of any of the foregoing, or the legal representative of a deceased person,
which has, or subsequent to January 1, 1936 had, one or more individuals performing
services for it within this state. Effective January 1, 1962, "employing unit" shall
include any federal instrumentality which is neither wholly nor partially owned by the
United States and which has one or more individuals performing services for it within
this state.

B. All individuals performing services within this state for an employing unit
which maintains two or more separate establishments within this state shall be deemed to
be performing services for a single employing unit for all the purposes of this chapter.

C. Each individual employed to perform or to assist in performing the work of any
person in the service of an employing unit shall be deemed to be engaged by the employing
unit for all the purposes of this chapter, whether the individual was hired or paid
directly by the employing unit or by such person, provided the employing unit had actual
or constructive knowledge of the work. Notwithstanding any other provision of this
chapter except for section 23-612.01, an individual who performs services in or for a
particular employing unit shall not be deemed to be in the employment of such employing
unit if such individual's wages for services in or for the particular employing unit are
paid by another employing unit, and if the contributions required by this chapter on such
wages are paid by such other employing unit.

D. Notwithstanding any other provision of this chapter, whether an individual or
entity is the employer of specific employees shall be determined by section 23-613.01,
except as provided in subsections E and G of this section with respect to a professional
employer organization or a temporary services employer.

E. A professional employer organization or a temporary services employer that
contracts to supply a worker to perform services for a customer or client is the employer
of the worker who performs the services. A customer or client who contracts with an
individual or entity that is not a professional employer organization or a temporary
services employer to engage a worker to perform services is the employer of the worker
who performs the services. Except as provided in subsection F of this section, an
individual or entity that is not a professional employer organization or a temporary
services employer, that contracts to supply a worker to perform services to a customer or
client and that pays remuneration to the worker acts as the agent of the employer for
purposes of payment of remuneration.

F. In circumstances that are in essence a loan of an employee to another employer
and the direction and control of the manner and means of performing the services changes
to the employer to whom the employee is loaned, the loaning employer continues to be the
employer of the employee if the loaning employer continues to pay remuneration to the
employee, whether or not reimbursed by the other employer. If the employer to whom the
employee is loaned pays remuneration to the employee for the services performed, that
employer is considered the employer for the purposes of any remuneration paid to the
employee by the employer, regardless of whether the loaning employer also pays
remuneration to the employee.

G. A professional employer organization shall report and pay all required
contributions to the unemployment compensation fund using the state employer account
number and the contribution rate of the professional employer organization.

H. On termination of a contract between a professional employer organization and a
client or the failure by a professional employer organization to submit reports or make
tax payments as required by this chapter, the client shall be treated as a new employer
without a previous experience record if the client has been subject to a professional
employer agreement for at least two years or if the client is not otherwise eligible for
an experience rating.

I. For the purposes of this section:

1. "Professional employer organization" has the same meaning prescribed in section
23-561.

2. "Temporary services employer" means an employing unit that contracts with
clients or customers to supply workers to perform services for the client or customer and
that performs all of the following:

(a) Negotiates with clients or customers for such matters as the time of work, the
place of work, the type of work, the working conditions, the quality of services and the
price of services.

(b) Determines assignments or reassignments of workers, even though workers retain
the right to refuse specific assignments.

(c) Retains the authority to assign or reassign a worker to other clients or
customers if a worker is determined unacceptable by a specific client or customer.

(d) Assigns or reassigns the worker to perform services for a client or customer.

(e) Sets the rate of pay of the worker, whether or not through negotiation.

(f) Pays the worker from its own account or accounts.

(g) Retains the right to hire and terminate workers.