{"data":{"id":"us-ky/krs-336.236","jurisdiction":"us-ky","citation":"KRS 336.236","heading":"Registration of businesses providing professional employer services --","body":"Requirements -- Limited registration -- Electronic filing -- Confidentiality --\nAdministrative regulations.\n(1) A person engaged in providing professional employer service s pursuant to a co -\nemployment relationship in which all or a majority of the employees of a client are\ncovered employees shall be registered under KRS 336.230 to 336.250 no later than\nJuly 15, 2024. After July 15, 2024, a person who is not registered under  KRS\n336.230 to 336.250 shall not offer or provide professional employer services in this\nCommonwealth and shall not use the names professional employer organization,\nPEO, staff leasing company, employee leasing company, administrative employer,\nor any other name or title representing professional employer services.\n(2) Each applicant for registration under KRS 336.230 to 336.250 shall provide the\nDepartment of Workers' Claims with the following:\n(a) The name or names under which the professional employer o rganization\nconducts business;\n(b) The address of the principal place of business of the professional employer\norganization and the address of each office it maintains in this\nCommonwealth;\n(c) The professional employer organization's taxpayer identificati on number or\nfederal and state employer identification number;\n(d) A list, by jurisdiction, of each name under which the professional employer\norganization has operated in the preceding five (5) years, including any\nalternative names, names of predecessors , and, if known, successor business\nentities;\n(e) A statement of ownership, which shall include the name and evidence of the\nbusiness experience of any person that, individually or acting in concert with\none (1) or more other persons, owns or controls, directly or indirectly, twenty-\nfive percent (25%) or more of the equity interest in the professional employer\norganization; and\n(f) 1. A financial statement setting forth the financial condition of the\nprofessional employer organization or professional employ er\norganization group.\n2. At the time of the initial application for  a new registration, the applicant\nshall submit the most recent audit of the applicant, which shall not be\nolder than thirteen (13) months. Thereafter, a professional employer\norganization or professional employer organization group shall file a\nsucceeding audit on an annual basis within one hundred eighty (180)\ndays after the end of the fiscal year.\n3. An applicant may apply for an extension with the Department of\nWorkers' Claims, but any extension request shall be accompanied by a\nletter from the auditors  stating the reasons for the delay and the\nanticipated date for completion of the audit.\n4. The financial statement shall be prepared in accordance with generally\naccepted accounting principles and audited by an independent certified\npublic accountant lice nsed to practice in the jurisdiction in which the\naccountant is located, and shall be without qualification as to the going\nconcern status of the professional employer organization.\n5. A professional employer organization group may submit combined or\nconsolidated audited financial statements to meet the requirements of\nthis paragraph.\n6. A professional employer organization that has not had sufficient\noperating history to have audited financial statements based on at least\ntwelve (12) months of operating hi story shall meet the requirements in\nKRS 336.240 and present financial statements reviewed by a certified\npublic accountant.\n7. A professional employer organization shall meet the requirements of\nthis paragraph if the financial statement submitted by the p rofessional\nemployer organization with its initial registration is without qualification\nas to the going concern status of the professional employer organization.\nIf the professional employer organization has not had sufficient\noperating history as set for th in subparagraph 6. of this paragraph, the\nprofessional employer organization shall meet the requirements of KRS\n336.240 in order to satisfy the requirements of this paragraph.\n(3) Each professional employer organization operating within this Commonwealt h as\nof July 14, 2022, shall complete its initial registration no later than July 15, 2024.\nThe initial registration shall be valid until the end of the professional employer\norganization's first fiscal year that is more than one (1) fiscal year after July  15,\n2024. This subsection shall apply to any professional employer organization that\ncompleted its initial registration at any time prior to July 15, 2024.\n(4) Each professional employer organization not operating within this Commonwealth\nas of July 14, 2 022, shall complete its initial registration prior to initiating\noperations within this Commonwealth. If a professional employer organization not\noperating within this Commonwealth becomes aware that an existing client that is\nnot based in this Commonwealt h had employees and operations in this\nCommonwealth, the professional employer organization shall either decline to\nprovide professional employer services for those employees or notify the\nDepartment of Workers' Claims within five (5) business days of its knowledge of\nthis fact and file a limited registration application or file a full business registration\nif there are more than fifty (50) covered employees. The Department of Workers'\nClaims may issue an interim operating permit for the period the registra tion\napplications are pending if the professional employer organization is currently\nregistered or licensed by another state and the Department of Workers' Claims\ndetermines it to be in the best interests of the potential covered employees.\n(5) Except as provided within subsection (3) of this section, within one hundred eighty\n(180) days after the end of the fiscal year, a registrant shall renew its registration by\nnotifying the Department of Workers' Claims of any changes in the information\nprovided in the  registrant's most recent registration or renewal. Each renewal\nregistration shall contain a financial statement demonstrating the registrant has met\nthe requirements of KRS 336.240. A registrant's existing registration shall remain in\neffect during the pendency of a renewal application.\n(6) Professional employer organizations in a professional employer organization group\nmay satisfy the reporting and financial requirements of KRS 336.230 to 336.250 on\na combined or consolidated basis provided that each mem ber of the professional\nemployer organization group guarantees the financial capacity obligations under\nKRS 336.230 to 336.250 of each other member of the professional employer\norganization group. In the case of a professional employer organization group t hat\nsubmits a combined or consolidated audited financial statement that includes\nentities that are not professional employer organizations or that are not in the\nprofessional employer organization group, the controlling entity of the professional\nemployer organization group under the consolidated or combined statement shall\nguarantee the obligations of the professional employer organizations in the\nprofessional employer organization group.\n(7) (a) A professional employer organization is eligible for a limit ed registration\nunder KRS 336.230 to 336.250 if the professional employer organization:\n1. Submits a properly executed request for limited registration on a form\nprovided by the Department of Workers' Claims;\n2. Is domiciled outside this Commonwealth and i s licensed or registered as\na professional employer organization in another state;\n3. Does not maintain an office in this Commonwealth or directly solicit\nclients located or domiciled within this Commonwealth; or\n4. Does not have more than fifty (50) cover ed employees domiciled or\nemployed in this Commonwealth on any given day.\n(b) A limited registration is valid for one (1) year and may be renewed.\n(c) A professional employer organization seeking limited registration under this\nsubsection shall provide the Department of Workers' Claims with information\nand documentation necessary to show that the professional employer\norganization qualifies for a limited registration.\n(d) KRS 336.240 does not apply to applicants for limited registration.\n(8) The Department of Workers' Claims shall maintain a list of professional employer\norganizations registered pursuant to KRS 336.230 to 336.250 that is readily\navailable to the public by electronic or other means.\n(9) The Department of Workers' Claims shall to the extent pr actical permit by\nadministrative regulation the acceptance of electronic filings, including\napplications, documents, reports, and other filings required under KRS 336.230 to\n336.250. The Department of Workers' Claims may provide for the acceptance of\nelectronic filings and other assurance by an independent and qualified assurance\norganization approved by the secretary that provides satisfactory assurance of\ncompliance acceptable to the Department of Workers' Claims consistent with or in\nlieu of the requirements of this section and KRS 336.240, and other requirements of\nKRS 336.230 to 336.250 The secretary shall permit a professional employer\norganization to authorize an approved assurance organization to act on behalf of the\nprofessional employer organization in complying with the registration requirements\nof KRS 336.230 to 336.250, including electronic filings of information and\npayment of registration fees. Use of an approved assurance organization shall be\noptional for a registrant. Nothing in this subsect ion shall limit or change the\nDepartment of Workers' Claims' authority to register or terminate registration of a\nprofessional employer organization or to investigate or enforce any provision of\nKRS 336.230 to 336.250.\n(10) All records, reports, and other information obtained from a professional employer\norganization under KRS 336.230 to 336.250, except to the extent necessary for the\nproper administration of KRS 336.230 to 336.250 by the Department of Workers'\nClaims, shall be confidential and shall not be published or open to public inspection\nother than to public employees in the performance of their public duties.\n(11) The Department of Workers' Claims may promulgate administrative regulations and\nprescribe forms necessary to promote the efficient administration of this section.","path":["KRS Chapter 336"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53906","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:25Z","sha256":"e968c783de94b0df590ad34b8c37c6793db032a8afc87e8ff71992f64b308789","source_id":"us-ky","stale":false,"prev":"us-ky/krs-336.234","next":"us-ky/krs-336.238"},"notice":"GroundRules: Original legal text. Not legal advice."}