Kentucky Statutes 336.250 – Violations — Penalties
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(1) A person shall not knowingly:
(a) After July 15, 2024, offer or provide professional employer services or use the names professional employer organization, PEO, staff leasing, employee leasing, administrative employer, or other title representing professional employer services without first becoming registered under KRS § 336.230 to
336.250; or
(b) Provide false or fraudulent information to the Department of Workers’ Claims in conjunction with any registration, renewal, or in any report required under KRS § 336.230 to KRS § 336.250.
(2) Action may be taken by the Department of Workers’ Claims against: (a) Any person for violation of subsection (1) of this section;
(b) A professional employer organization or the controlling person of a professional employer organization upon the conviction of a professional employer organization or the controlling person of a professional employer organization of a crime that relates to the operation of the professional employer organization or the ability of the registrant or the controlling person of the registrant to operate the professional employer organization;
(c) A professional employer organization or the controlling person of a professional employer organization for knowingly making a material misrepresentation to the Department of Workers’ Claims or any other state agency; or
(d) A professional employer organization or the controlling person of a professional employer organization for a willful violation of KRS § 336.230 to
336.250 or any order or administrative regulation issued by the Department of
Workers’ Claims under KRS § 336.230 to KRS § 336.250.
(3) Upon finding that a professional employer organization or the controlling person of a professional employer organization has violated any provision of KRS § 336.230 to
336.250, the Department of Workers’ Claims may: (a) Deny an application for a registration;
(b) Revoke, restrict, or refuse a registration;
(c) Impose a civil penalty not to exceed one thousand dollars ($1,000) for each violation;
(d) Place a registration on probation and subject to conditions specified by the
Department of Workers’ Claims; or
(e) Issue a cease and desist order.
Effective: January 6, 2023
History: Amended 2023 Ky. Acts ch. 1, sec. 3, effective January 6, 2023. — Created
2022 Ky. Acts ch. 50, sec. 11, effective July 14, 2022.
Legislative Research Commission Note (1/6/2023). 2023 Ky. Acts ch. 1, sec. 5, reads as follows: “For the period beginning July 14, 2022, and continuing until the effective date of this Act [January 6, 2023], the Education and Labor Cabinet shall not require reporting or payment of required contributions to the unemployment insurance fund using the state employer identification number and contribution rate
of the professional employer organization or take enforcement action against the professional employer organization pursuant to KRS § 336.250 regarding professional employer organization contributions related to KRS § 336.248(2).”
(a) After July 15, 2024, offer or provide professional employer services or use the names professional employer organization, PEO, staff leasing, employee leasing, administrative employer, or other title representing professional employer services without first becoming registered under KRS § 336.230 to
Terms Used In Kentucky Statutes 336.250
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- any other state: includes any state, territory, outlying possession, the District of Columbia, and any foreign government or country. See Kentucky Statutes 446.010
- Cabinet: means Education and Labor Cabinet. See Kentucky Statutes 336.010
- Contribution: means any:
(a) Payment, distribution, loan, deposit, or gift of money or other thing of value, to a candidate, his or her agent, a slate of candidates, its authorized agent, a committee, or contributing organization but shall not include a loan of money by any financial institution doing business in Kentucky made in accordance with applicable banking laws and regulations and in the ordinary course of business. See Kentucky Statutes 336.180 - Conviction: A judgement of guilt against a criminal defendant.
- Employer: means all persons, firms, associations, corporations, public employers, public school employers, and public colleges, universities, institutions, and education agencies. See Kentucky Statutes 336.180
- Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
336.250; or
(b) Provide false or fraudulent information to the Department of Workers’ Claims in conjunction with any registration, renewal, or in any report required under KRS § 336.230 to KRS § 336.250.
(2) Action may be taken by the Department of Workers’ Claims against: (a) Any person for violation of subsection (1) of this section;
(b) A professional employer organization or the controlling person of a professional employer organization upon the conviction of a professional employer organization or the controlling person of a professional employer organization of a crime that relates to the operation of the professional employer organization or the ability of the registrant or the controlling person of the registrant to operate the professional employer organization;
(c) A professional employer organization or the controlling person of a professional employer organization for knowingly making a material misrepresentation to the Department of Workers’ Claims or any other state agency; or
(d) A professional employer organization or the controlling person of a professional employer organization for a willful violation of KRS § 336.230 to
336.250 or any order or administrative regulation issued by the Department of
Workers’ Claims under KRS § 336.230 to KRS § 336.250.
(3) Upon finding that a professional employer organization or the controlling person of a professional employer organization has violated any provision of KRS § 336.230 to
336.250, the Department of Workers’ Claims may: (a) Deny an application for a registration;
(b) Revoke, restrict, or refuse a registration;
(c) Impose a civil penalty not to exceed one thousand dollars ($1,000) for each violation;
(d) Place a registration on probation and subject to conditions specified by the
Department of Workers’ Claims; or
(e) Issue a cease and desist order.
Effective: January 6, 2023
History: Amended 2023 Ky. Acts ch. 1, sec. 3, effective January 6, 2023. — Created
2022 Ky. Acts ch. 50, sec. 11, effective July 14, 2022.
Legislative Research Commission Note (1/6/2023). 2023 Ky. Acts ch. 1, sec. 5, reads as follows: “For the period beginning July 14, 2022, and continuing until the effective date of this Act [January 6, 2023], the Education and Labor Cabinet shall not require reporting or payment of required contributions to the unemployment insurance fund using the state employer identification number and contribution rate
of the professional employer organization or take enforcement action against the professional employer organization pursuant to KRS § 336.250 regarding professional employer organization contributions related to KRS § 336.248(2).”