23-575. Violations; classification; civil penalties; rules
A. A person who offers to provide or actually provides professional employer services or uses the name professional employer organization, staff leasing, employee leasing or administrative employee or any other title representing a professional employer service without first registering with the secretary of state pursuant to section 23-563 is guilty of a class 1 misdemeanor.
B. A person who knowingly provides false or fraudulent information to the secretary of state under this article is guilty of a class 1 misdemeanor.
C. A person who is a controlling person of a professional employer organization and who collects payments from a client representing wages, taxes, benefit payments or insurance payments and fails to remit the funds to the appropriate government or private entity within a reasonable time is guilty of theft as provided in section 13-1802.
D. A person who is a controlling person of a client of a professional employer organization and who fraudulently or falsely procures or attempts to procure services or benefits from a registered professional employer organization without having monies that are adequate to compensate the professional employer organization is guilty of a class 4 felony.
E. If a person wilfully fails to comply with any requirement of this article, knowingly makes a material misrepresentation to the secretary of state, violates subsection A, B or C of this section or is guilty of an offense relating to the operation of a professional employer organization, the secretary of state:
1. Shall impose a civil penalty not to exceed one thousand dollars against the person for each violation. The secretary of state shall deposit, pursuant to sections 35-146 and 35-147, penalties collected pursuant to this paragraph in the state general fund.
2. May deny an application for registration.
3. May revoke, restrict or refuse to renew a registration.
4. May place a registrant on probation for a period of time determined by rules adopted by the secretary of state.
F. The secretary of state shall adopt rules for hearings and penalties for violations of this article or rules adopted under this article.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.