§ 48-2702 — Terms, defined

For purposes of the
Professional Employer Organization Registration Act:
(1) Client
means any person who enters into a professional employer agreement with a
professional employer organization;
(2) Co-employer means either a professional
employer organization or a client;
(3) Co-employment relationship means a relationship
which is intended to be an ongoing relationship rather than a temporary or
project-specific one, wherein the rights, duties, and obligations of an employer
which arise out of an employment relationship have been allocated between
the client employer and a professional employer organization as co-employers
pursuant to a professional employer agreement and the act. In such a co-employment
relationship:
(a) The professional employer organization is entitled to enforce
only such employer rights and is subject to only those employer obligations
specifically allocated to the professional employer organization by the professional
employer agreement or the act;
(b) The client is entitled to enforce those
rights and is obligated to provide and perform those employer obligations
allocated to such client by the professional employer agreement or the act;
and
(c) The client is entitled to enforce any right and is obligated
to perform any obligation of an employer not specifically allocated to the
professional employer organization by the professional employer agreement
or the act;
(4) Covered employee means an individual having a co-employment
relationship with a professional employer organization and a client who meets
all of the following criteria: (a) The individual has received written notice
of co-employment with the professional employer organization; and (b) the
individual's co-employment relationship is pursuant to a professional employer
agreement subject to the act. Individuals who are officers, directors, shareholders,
partners, and managers of the client or who are members of a limited liability
company if such company is the client are covered employees to the extent
the professional employer organization and the client have expressly agreed
in the professional employer agreement that such individuals are covered employees,
if such individuals meet the criteria of this subdivision and act as operational
managers or perform day-to-day operational services for the client;
(5) Department
means the Department of Labor;
(6) Direct-hire employee means an individual
who is an employee of the professional employer organization within the meaning
of the Nebraska Workers' Compensation Act and who is not an employee of a
client and who is not a covered employee;
(7) Master policy means a workers' compensation
insurance policy issued to a professional employer organization that provides
coverage for more than one client and may provide coverage to the professional
employer organization with respect to its direct-hire employees or that provides
coverage for one client in addition to the professional employer organization's
direct-hire employees. Two or more clients insured under the same policy solely
because they are under common ownership are considered a single client for
purposes of this subdivision;
(8) Multiple coordinated policy means a
workers' compensation insurance policy that provides coverage for only a single
client or group of clients under common ownership but with payment obligations
and certain policy communications coordinated through the professional employer
organization;
(9) Person means any individual, partnership, corporation, limited
liability company, association, or any other form of legally recognized entity;
(10) Professional
employer agreement means a written contract by and between a client and a
professional employer organization that provides:
(a) For the co-employment
of covered employees;
(b) For the allocation of employer rights and obligations between
the client and the professional employer organization with respect to covered
employees; and
(c) That the professional employer organization and the client assume
the responsibilities required by the Professional Employer Organization Registration
Act;
(11)(a) Professional employer organization means any person engaged
in the business of providing professional employer services. The applicability
of the act to a person engaged in the business of providing professional employer
services shall be unaffected by the person's use of the term staff leasing
company, administrative employer, employee leasing company, or any name other
than professional employer organization or PEO.
(b) The following are
not professional employer organizations or professional employment services
for purposes of the act:
(i) Arrangements wherein a person, whose principal business activity
is not entering into professional employer arrangements and which does not
hold itself out as a professional employer organization, shares employees
with a commonly owned company within the meaning of sections 414(b) and (c)
of the Internal Revenue Code;
(ii) Independent contractor arrangements
by which a person assumes responsibility for the product produced or service
performed by such person or his or her agents and retains and exercises primary
direction and control over the work performed by the individuals whose services
are supplied under such arrangements; and
(iii) Providing temporary help services;
(12) Professional
employer organization group means two or more professional employer organizations
that are majority-owned or commonly controlled by the same entity, parent
company, or controlling person;
(13) Professional employer services means
the service of entering into co-employment relationships;
(14) Registrant
means a professional employer organization registered under the act;
(15) Temporary
help services means services consisting of a person:
(a) Recruiting and hiring
its own employees;
(b) Finding other organizations that need the services of those
employees;
(c) Assigning those employees (i) to perform work at or services
for the other organizations to support or supplement the other organizations'
workforces, (ii) to provide assistance in special work situations, including
employee absences, skill shortages, or seasonal workloads, or (iii) to perform
special assignments or projects; and
(d) Customarily attempting to reassign the
employees to other organizations when they finish each assignment; and
(16) Working
capital means current assets less current liabilities as defined by generally
accepted accounting principles.

Legislative History

Source: Laws 2010, LB579, § 2. Cross References: Nebraska Workers' Compensation Act, see section 48-1,110.