230 Neb. Admin. Code, ch. 3, § 11

Current through September 17, 2024

Section 230-3-11 - Prohibited Acts and Disciplinary Action

A. A person shall not knowingly:

1. 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 Act;

2. Provide false or fraudulent information to the Department in conjunction with any registration, renewal, or report required under the Act; or

3. 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 section 48-2711(1) of the Act, or subsection (A) of this section, is guilty of a Class I misdemeanor.

C. The Department is authorized by the Act to take disciplinary action against the following:

1. A person offering professional employer services, in violation of section 48-2711 of the Act, and subsection (A) of this section;

2. A professional employer organization or a controlling person of such employer organization, upon the conviction of an employer organization or controlling person thereof, of a crime that relates to:

a. The operation of the professional employer organization; or

b. The ability of a registrant or a controlling person of a registrant to operate a professional employer organization;

3. A professional employer organization or a controlling person of such employer organization for knowingly making a material misrepresentation to an insurer, an insurance producer, the Department, or other governmental agency; or

4. A professional employer organization or a controlling person of such employer organization for a willful violation of the Act or any order or regulation issued by the Department under the Act.

D. Disciplinary actions may be taken by the Department against those described in section 48-2711(1) and (2) of the Act, and in subsections (A) and (C) of this section:

1. After notice, an opportunity for hearing, a hearing (if requested by the respondent), upon a finding of the commission of a prohibited act or a violation of this section of the regulations, and subject to any appeal required;

2. Disciplinary actions may include one or more of the following:

a. Denial of an application for registration;

b. Revocation or restriction of, or refusal to renew, a registration;

c. Imposition of an administrative penalty, in an amount not to exceed one thousand dollars ($1,000.00) for each material violation;

d. Placement of the registrant on an administrative probation, for such period and subject to such conditions as the Department specifies; or

e. Issuance of a cease and desist order.

E. A decision by the Department to take disciplinary action, as described in section 48-2711 of the Act, or this section of these regulations, may be appealed in accordance with the Administrative Procedure Act.

230 Neb. Admin. Code, ch. 3, § 11

Amended effective 6/7/2017.