State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter48 > 48-2702

48-2702. Terms, defined.For purposes of theProfessional Employer Organization Registration Act:(1) Clientmeans any person who enters into a professional employer agreement with aprofessional employer organization;(2) Co-employer means either a professionalemployer organization or a client;(3) Co-employment relationship means a relationshipwhich is intended to be an ongoing relationship rather than a temporary orproject-specific one, wherein the rights, duties, and obligations of an employerwhich arise out of an employment relationship have been allocated betweenthe client employer and a professional employer organization as co-employerspursuant to a professional employer agreement and the act. In such a co-employmentrelationship:(a) The professional employer organization is entitled to enforceonly such employer rights and is subject to only those employer obligationsspecifically allocated to the professional employer organization by the professionalemployer agreement or the act;(b) The client is entitled to enforce thoserights and is obligated to provide and perform those employer obligationsallocated to such client by the professional employer agreement or the act;and(c) The client is entitled to enforce any right and is obligatedto perform any obligation of an employer not specifically allocated to theprofessional employer organization by the professional employer agreementor the act;(4) Covered employee means an individual having a co-employmentrelationship with a professional employer organization and a client who meetsall of the following criteria: (a) The individual has received written noticeof co-employment with the professional employer organization; and (b) theindividual's co-employment relationship is pursuant to a professional employeragreement subject to the act. Individuals who are officers, directors, shareholders,partners, and managers of the client or who are members of a limited liabilitycompany if such company is the client are covered employees to the extentthe professional employer organization and the client have expressly agreedin the professional employer agreement that such individuals are covered employees,if such individuals meet the criteria of this subdivision and act as operationalmanagers or perform day-to-day operational services for the client;(5) Departmentmeans the Department of Labor;(6) Direct-hire employee means an individualwho is an employee of the professional employer organization within the meaningof the Nebraska Workers' Compensation Act and who is not an employee of aclient and who is not a covered employee;(7) Master policy means a workers' compensationinsurance policy issued to a professional employer organization that providescoverage for more than one client and may provide coverage to the professionalemployer organization with respect to its direct-hire employees or that providescoverage for one client in addition to the professional employer organization'sdirect-hire employees. Two or more clients insured under the same policy solelybecause they are under common ownership are considered a single client forpurposes of this subdivision;(8) Multiple coordinated policy means aworkers' compensation insurance policy that provides coverage for only a singleclient or group of clients under common ownership but with payment obligationsand certain policy communications coordinated through the professional employerorganization;(9) Person means any individual, partnership, corporation, limitedliability company, association, or any other form of legally recognized entity;(10) Professionalemployer agreement means a written contract by and between a client and aprofessional employer organization that provides:(a) For the co-employmentof covered employees;(b) For the allocation of employer rights and obligations betweenthe client and the professional employer organization with respect to coveredemployees; and(c) That the professional employer organization and the client assumethe responsibilities required by the Professional Employer Organization RegistrationAct;(11)(a) Professional employer organization means any person engagedin the business of providing professional employer services. The applicabilityof the act to a person engaged in the business of providing professional employerservices shall be unaffected by the person's use of the term staff leasingcompany, administrative employer, employee leasing company, or any name otherthan professional employer organization or PEO.(b) The following arenot professional employer organizations or professional employment servicesfor purposes of the act:(i) Arrangements wherein a person, whose principal business activityis not entering into professional employer arrangements and which does nothold itself out as a professional employer organization, shares employeeswith a commonly owned company within the meaning of sections 414(b) and (c)of the Internal Revenue Code;(ii) Independent contractor arrangementsby which a person assumes responsibility for the product produced or serviceperformed by such person or his or her agents and retains and exercises primarydirection and control over the work performed by the individuals whose servicesare supplied under such arrangements; and(iii) Providing temporary help services;(12) Professionalemployer organization group means two or more professional employer organizationsthat are majority-owned or commonly controlled by the same entity, parentcompany, or controlling person;(13) Professional employer services meansthe service of entering into co-employment relationships;(14) Registrantmeans a professional employer organization registered under the act;(15) Temporaryhelp services means services consisting of a person:(a) Recruiting and hiringits own employees;(b) Finding other organizations that need the services of thoseemployees;(c) Assigning those employees (i) to perform work at or servicesfor the other organizations to support or supplement the other organizations'workforces, (ii) to provide assistance in special work situations, includingemployee absences, skill shortages, or seasonal workloads, or (iii) to performspecial assignments or projects; and(d) Customarily attempting to reassign theemployees to other organizations when they finish each assignment; and(16) Workingcapital means current assets less current liabilities as defined by generallyaccepted accounting principles. SourceLaws 2010, LB579, § 2.Operative Date: January 1, 2012 Cross ReferencesNebraska Workers' Compensation Act, see section 48-1,110.