(1)(a) A person
shall not knowingly:
(i)Offer
or provide professional employer services in this state or use the names PEO,
professional employer organization, staff leasing, employee leasing, administrative
employer, or other title representing professional employer services unless
such person is registered under the Professional Employer Organization Registration
Act;
(ii)Provide false or fraudulent information to the department
in conjunction with any registration, renewal, or report required under the
act; or
(iii)Enter into a co-employment relationship in which less than
a majority of the employees of the client in this state are covered employees
or in which less than one-half of the payroll of the client in this state
is attributable to covered employees.
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(1)(a) A person
shall not knowingly:
(i) Offer
or provide professional employer services in this state or use the names PEO,
professional employer organization, staff leasing, employee leasing, administrative
employer, or other title representing professional employer services unless
such person is registered under the Professional Employer Organization Registration
Act;
(ii) Provide false or fraudulent information to the department
in conjunction with any registration, renewal, or report required under the
act; or
(iii) Enter into a co-employment relationship in which less than
a majority of the employees of the client in this state are covered employees
or in which less than one-half of the payroll of the client in this state
is attributable to covered employees.
(b) Any person violating this subsection
is guilty of a Class I misdemeanor.
(2) Disciplinary action may be taken by
the department:
(a) Against a person for violation of subsection (1) of this section;
(b) Against
a professional employer organization or a controlling person of a professional
employer organization upon the conviction of a professional employer organization
or a controlling person of a professional employer organization of a crime
that relates to the operation of the professional employer organization or
the ability of a registrant or a controlling person of a registrant to operate
a professional employer organization;
(c) Against a professional employer organization
or a controlling person of a professional employer organization for knowingly
making a material misrepresentation to an insurer, an insurance producer,
the department, or other governmental agency; or
(d) Against a professional
employer organization or a controlling person of a professional employer organization
for a willful violation of the act or any order or regulation issued by the
department under the act.
(3)(a) Upon finding, after notice and opportunity for hearing,
that a professional employer organization, a controlling person of a professional
employer organization, or a person offering professional employer services
has violated one or more provisions of this section, and subject to any appeal
required, the department may:
(i) Deny an application for registration;
(ii) Revoke,
restrict, or refuse to renew a registration;
(iii) Impose an administrative
penalty in an amount not to exceed one thousand dollars for each material
violation;
(iv) Place the registrant on probation for the period and subject
to conditions that the department specifies; or
(v) Issue a cease and
desist order.
(b) A decision by the department under this subsection may be appealed
in accordance with the Administrative Procedure Act.
(4) The department may
adopt and promulgate rules and regulations reasonably necessary for the administration
and enforcement of this section and sections 48-2704 , 48-2705 , and 48-2710 .