48-2711 Prohibited acts; violation; penalty; disciplinary action; powers of department; rules and regulations.
48-2711. Prohibited acts; violation; penalty;disciplinary action; powers of department; rules and regulations.(1)(a) A personshall not knowingly:(i) Offeror provide professional employer services in this state or use the names PEO,professional employer organization, staff leasing, employee leasing, administrativeemployer, or other title representing professional employer services unlesssuch person is registered under the Professional Employer Organization RegistrationAct;(ii) Provide false or fraudulent information to the departmentin conjunction with any registration, renewal, or report required under theact; or(iii) Enter into a co-employment relationship in which less thana majority of the employees of the client in this state are covered employeesor in which less than one-half of the payroll of the client in this stateis attributable to covered employees.(b) Any person violating this subsectionis guilty of a Class I misdemeanor.(2) Disciplinary action may be taken bythe department:(a) Against a person for violation of subsection (1) of this section;(b) Againsta professional employer organization or a controlling person of a professionalemployer organization upon the conviction of a professional employer organizationor a controlling person of a professional employer organization of a crimethat relates to the operation of the professional employer organization orthe ability of a registrant or a controlling person of a registrant to operatea professional employer organization;(c) Against a professional employer organizationor a controlling person of a professional employer organization for knowinglymaking a material misrepresentation to an insurer, an insurance producer,the department, or other governmental agency; or(d) Against a professionalemployer organization or a controlling person of a professional employer organizationfor a willful violation of the act or any order or regulation issued by thedepartment under the act.(3)(a) Upon finding, after notice and opportunity for hearing,that a professional employer organization, a controlling person of a professionalemployer organization, or a person offering professional employer serviceshas violated one or more provisions of this section, and subject to any appealrequired, the department may:(i) Deny an application for registration;(ii) Revoke,restrict, or refuse to renew a registration;(iii) Impose an administrativepenalty in an amount not to exceed one thousand dollars for each materialviolation;(iv) Place the registrant on probation for the period and subjectto conditions that the department specifies; or(v) Issue a cease anddesist order.(b) A decision by the department under this subsection may be appealedin accordance with the Administrative Procedure Act.(4) The department mayadopt and promulgate rules and regulations reasonably necessary for the administrationand enforcement of this section and sections 48-2704, 48-2705, and 48-2710. SourceLaws 2010, LB579, § 11.Operative Date: January 1, 2012 Cross ReferencesAdministrative Procedure Act, see section 84-920.