State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter48 > 48-2705

48-2705. Financial commitment required; filingwith department.(1)Except as provided in subsections (7) and (10) of section 48-2704, each professionalemployer organization or professional employer organization group shall haveeither:(a) Positiveworking capital of at least one hundred thousand dollars at the time of initialregistration and each renewal thereafter as reflected in the financial statementssubmitted to the department with the initial registration and each annualrenewal; or(b)(i) If the positive working capital of the professional employerorganization is less than one hundred thousand dollars, a bond, certificateof deposit, escrow account, or irrevocable letter of credit in an amount ofnot less than one hundred thousand dollars; or(ii) If the financial statementsubmitted to the department indicates a deficit in working capital, a bond,certificate of deposit, escrow account, or irrevocable letter of credit inan amount that is not less than one hundred thousand dollars plus an amountthat is sufficient to cover that deficit.(2) The commitment described in subdivision(1)(b) of this section shall be in a form approved by the department, shallbe held in a depository designated by the department, and shall secure thepayment by the professional employer organization or professional employerorganization group of any wages, salaries, employee benefits, worker's compensationinsurance premiums, payroll taxes, unemployment insurance contributions, orother amounts that are payable to or with respect to an employee performingservices for a client if the professional employer organization or professionalemployer organization group does not make those payments when due. The commitmentshall be established in favor of or be made payable to the department, forthe benefit of the state and any employee to whom or with respect to whomthe professional employer organization or professional employer organizationgroup does not make a payment described in this subsection when due. The professionalemployer organization or professional employer organization group shall filewith the department any agreement, instrument, or other document that is necessaryto enforce the commitment against the professional employer organization orprofessional employer organization group, against any relevant third party,or both. SourceLaws 2010, LB579, § 5.Operative Date: January 1, 2012