Nebraska LB 579 requires a PEO to maintain a positive working capital that is at least $100,000. If the PEO’s positive working capital is less than $100,000, it must obtain a bond, letter of credit, or securities in an amount not less than $100,000. Originally, the bill did not provide a minimum amount for the positive working capital, and it would have required a bond in an amount that made up the deficiency plus an additional $100,000. The bond secures the payment of any tax, wage, benefit, or other entitlement due to or with respect to a covered employee if the PEO does not make the payment when due. The new law also provides that a “covered employee is not, solely as the result of being a covered employee of a professional employer organization, an employee of the professional employer organization for purposes of general liability insurance, fidelity bonds,
surety bonds, employer’s liability which is not covered by workers’ compensation and employer’s liability insurance carried by the professional employer organization unless the covered employee is included by specific reference in the professional employer agreement and applicable prearranged employment contract, insurance contract or bond.” ENACTED: 03/17/2010