Nebraska LB 579 – Professional Employer Organization Act

State of Nebraska Moves to Finalize PEO Legislation

Nebraska Sate senator Abbie Cornett has promoted Nebraska Legislative Bill LB 579 to the governor for approval. The legislation contains important guidelines for PEOs operating in Nebraska and provides certain protections for PEO clients. The bill outlines rules for PEOs regarding workers’ compensation insurance policy provisions, unemployment insurance (UI) remittance and tax collection duties. Also included is working capital and/or bonding financial requirements when PEO register with the state of Nebraska.

Professional Employer Organizations and their clients are advised to monitor the status of Nebraska LB 579 – Professional Employer Organization Act and to review the entire bill for Nebraska Professional Employer Organization Act

This legislation has been promoted by NAPEO to further codify the status of PEOs operating in Nebraska and to provide legislative certainty for PEO clients. StaffMarket urges all StaffMarket member PEOs with ANY worksite employees operating in Nebraska to review these requirements. Provisions in the bill allow PEOs not registered in the state serving clients not based in Nebraska but who may have employees working in Nebraska to file a limited registration. Full registration is required when the worksite employee count exceeds 50 Nebraska based worksite employees. See act page 13.