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LB293 LB293 2025 LEGISLATURE OF NEBRASKA ONE HUNDRED NINTH LEGISLATURE FIRST SESSION LEGISLATIVE BILL 293 FINAL READING   Introduced by Ballard, 21.
LB293 LB293 2025 LEGISLATIVE BILL 293 Approved by the Governor June 4, 2025   Introduced by Ballard, 21.
Read first time January 15, 2025 Committee:
  A BILL FOR AN ACT relating to the Professional Employer Organization Registration Act;
Banking, Commerce and Insurance A BILL FOR AN ACT relating to the Professional Employer Organization Registration Act;
Be it enacted by the people of the State of Nebraska, -1- LB293 LB293 2025 Section 1.
Be it enacted by the people of the State of Nebraska, Section 1.
The rights, duties, and obligations of the professional employer organization as co-employer with respect to any covered employee shall be limited to those arising pursuant to the professional employer agreement and the act during the term of co- employment by the professional employer organization of such covered employee;
The rights, duties, and obligations of the professional employer organization as co-employer with respect to any covered employee shall be limited to those arising pursuant to the professional employer agreement and the act during the term of co-employment by the professional employer organization of such covered employee;
(3) Except as specifically provided in the Professional Employer Organization Registration Act, the co-employment relationship between the client and the professional employer organization, and between each co- -2- LB293 LB293 2025 employer and each covered employee, shall be governed by the professional employer agreement.
(3) Except as specifically provided in the Professional Employer Organization Registration Act, the co-employment relationship between the client and the professional employer organization, and between each co-employer and each covered employee, shall be governed by the professional employer agreement.
The client shall not be relieved of its obligations under the Nebraska Workers' Compensation Act to provide workers' -3- LB293 LB293 2025 compensation coverage in the event that the professional employer organization fails to obtain workers' compensation insurance for which it has assumed responsibility.
The client shall not be relieved of its obligations under the Nebraska Workers' Compensation Act to provide workers' compensation coverage in the event that the professional employer organization fails to obtain workers' compensation insurance for which it has assumed responsibility.
(a) Notice of the general nature of the co-employment relationship between and among the professional employer organization, the client, and any covered employees;
(a) Notice of the general nature of the co-employment relationship between and among the professional employer organization, the client, and any covered -1- LB293 LB293 2025 employees;
-4- LB293 LB293 2025 (d) Nothing in this subsection shall limit any contractual liability or obligation specifically provided in a professional employer agreement;
(d) Nothing in this subsection shall limit any contractual liability or obligation specifically provided in a professional employer agreement;
(b) Any tax or assessment imposed upon professional employer services or any business license or other fee which is based upon gross receipts shall allow a deduction from the gross income or receipts of the business derived from performing professional employer services that is equal to that portion of the fee charged to a client that represents the -5- LB293 LB293 2025 actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement;
(b) Any tax or assessment imposed upon professional employer services or any business license or other fee which is based upon gross receipts shall allow a deduction from the gross income or receipts of the business derived from performing professional employer services that is equal to that portion of the fee charged to a client that represents the actual cost of wages and salaries, benefits, workers' compensation, payroll taxes, withholding, or other assessments paid to or on behalf of a covered employee by the professional employer organization under a professional employer agreement;
(C) Provide sound reserves for such health benefit plan as determined using generally accepted actuarial standards of practice and -6- LB293 LB293 2025 consistent with the prudence and loyalty standards of care for fiduciaries under the federal Employee Retirement Income Security Act of 1974, as such act existed on January 1, 2025;
(C) Provide sound reserves for such health benefit plan as determined using generally accepted actuarial standards of practice and consistent with the prudence and loyalty standards of care for fiduciaries under the federal Employee Retirement Income Security Act of 1974, as such act existed on January 1, 2025;
and (E) File a report that contains all of the information required by subdivision (b) of this subsection with the department on a quarterly basis and within ninety days after the last day of the fiscal year of such health benefit plan.
and (E) File a report that contains all of the information required by subdivision (b) of this subsection with the department on a quarterly basis and within ninety days after the last day of the fiscal year of such health benefit -2- LB293 LB293 2025 plan.
A policy issued to satisfy the requirements of this subdivision (8)(b)(iii) shall be evidenced in a binder or policy by an insurer licensed to transact the business of insurance in this state and contain a provision that the coverage shall not be terminated by the insurer unless the professional employer organization and the Commissioner of Labor receive a written notice of termination from the insurer at least thirty days before the effective date of the termination;
A policy issued to satisfy the requirements of this subdivision (8)(b) (iii) shall be evidenced in a binder or policy by an insurer licensed to transact the business of insurance in this state and contain a provision that the coverage shall not be terminated by the insurer unless the professional employer organization and the Commissioner of Labor receive a written notice of termination from the insurer at least thirty days before the effective date of the termination;
and (iv) A certificate of compliance that certifies that the health benefit plan has been conducted in accordance with relevant laws of this -7- LB293 LB293 2025 state that relate to professional employer organizations.
and (iv) A certificate of compliance that certifies that the health benefit plan has been conducted in accordance with relevant laws of this state that relate to professional employer organizations.
(iii) Within thirty days after the hearing described in subdivision (c)(ii) of this subsection of a professional employer organization, the department may issue an order that requires such professional employer organization to comply with the health benefit plan requirements in this subsection.
(iii) Within thirty days after the hearing described in subdivision (c) (ii) of this subsection of a professional employer organization, the department may issue an order that requires such professional employer organization to comply with the health benefit plan requirements in this subsection.
(iv) The department shall revoke the registration under the Professional Employer Organization Registration Act of any professional employer organization that does not comply with an order issued under subdivision (c)(iii) of this subsection.
(iv) The department shall revoke the registration under the Professional Employer Organization Registration Act of any professional employer organization that does not comply with an order issued under subdivision (c) (iii) of this subsection.
and (ii) The federal Employee Retirement Income Security Act of 1974, as -8- LB293 LB293 2025 such act existed on January 1, 2024.
and (ii) The federal Employee Retirement Income Security Act of 1974, as such act existed on January 1, 2024.
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