NRS: CHAPTER 611 - EMPLOYMENT AGENCIES AND OFFICES

[Rev. 6/29/2024 4:38:59 PM--2023]

CHAPTER 611 - EMPLOYMENT AGENCIES AND OFFICES

FREE PUBLIC EMPLOYMENT OFFICES

NRS 611.010 Establishment and maintenance.

PRIVATE EMPLOYMENT AGENCIES

NRS 611.020 Definitions.

NRS 611.023 Administration by Labor Commissioner; regulations.

NRS 611.025 Hearings by Labor Commissioner; issuance and enforcement of subpoenas.

NRS 611.030 License: Procurement from Labor Commissioner; penalty for doing business without license.

NRS 611.040 Application for license.

NRS 611.045 Investigation of applicant; issuance and renewal of license.

NRS 611.050 Grounds for denial, suspension and revocation of license.

NRS 611.055 Employment agency to be permitted to continue business during pendency of review proceedings.

NRS 611.060 Fees for licenses and renewals.

NRS 611.070 Bond: Amount; conditions; deposits in lieu of bond; increase of bond or deposit; Labor Commissioner’s Account for Bonds.

NRS 611.080 Bond: Payable to people of State of Nevada; conditions.

NRS 611.090 Bond: Failure to file new bond after demand; revocation of license.

NRS 611.100 Deposit of fees for licenses.

NRS 611.110 Contents of license.

NRS 611.120 Persons and places protected.

NRS 611.130 Posting of license in employment agency.

NRS 611.135 Claims against licensees: Assignment to Labor Commissioner; disposition of amounts recovered.

NRS 611.140 Actions against licensees: Parties; limitation of action; assignment; jurisdiction.

NRS 611.150 Actions against licensees: Service of summons.

NRS 611.160 Records: Maintenance and retention; contents; false entry prohibited.

NRS 611.170 Records: Inspection by Labor Commissioner; furnishing copy.

NRS 611.175 Copy of contract to be given to applicant.

NRS 611.180 Invoice to be given to applicant; contents.

NRS 611.200 Receipts: Issuance; retention of duplicate; required statement.

NRS 611.210 Approval of forms by Labor Commissioner.

NRS 611.220 Limit on fee.

NRS 611.225 Interest on account past due; charge for returned check.

NRS 611.230 Posting of notice of limitation of fee.

NRS 611.240 Authorization for referral required before acceptance of fee from applicant or referral of applicant.

NRS 611.250 Refunding of fee paid by applicant.

NRS 611.260 Limitation on fee if applicant employed less than 30 days.

NRS 611.265 Prohibited practices.

NRS 611.270 Publication of false, fraudulent or misleading information; advertisements.

NRS 611.280 Accepting application by child or placing child in employment in violation of chapter 609 of NRS.

NRS 611.290 Statement of existence of labor dispute to be furnished applicant; retention of signed copy.

NRS 611.300 Division of fees with certain persons prohibited.

NRS 611.310 Enforcement by Labor Commissioner; prosecution by district attorney.

NRS 611.320 Criminal and administrative penalties.

PROFESSIONAL EMPLOYER ORGANIZATIONS

NRS 611.400 Definitions.

NRS 611.410 License required; expiration; penalty.

NRS 611.420 Written application for issuance or renewal of license must be on approved form.

NRS 611.430 Contents of application; fee; Labor Commissioner to be notified of certain changes in information about applicant; power of Labor Commissioner to refuse to issue or revoke license; financial statements.

NRS 611.440 Separate payroll records required upon operation of professional employer organization and temporary employment service; prohibition on maintaining policy of workers’ compensation insurance for both professional employer organization and temporary employment service.

NRS 611.450 Written agreement regarding employment relationship with leased employees.

NRS 611.460 Responsibilities of client company and professional employer organization; limitations; joint and several liability of client company.

NRS 611.470 Assurance organizations: Authority of Labor Commissioner; regulations; independence and approval required.

NRS 611.480 Administration and regulations; investigation and enforcement.

NRS 611.490 Action for damages for statutory violation; administrative penalties.

_________

FREE PUBLIC EMPLOYMENT OFFICES

NRS 611.010 Establishment and maintenance. The Administrator of the Employment Security Division of the Department of Employment, Training and Rehabilitation shall establish and maintain free public employment offices as provided in chapter 612 of NRS.

[Part 8:59:1941; 1931 NCL § 2825.25g]—(NRS A 1993, 1804)

PRIVATE EMPLOYMENT AGENCIES

NRS 611.020 Definitions. As used in NRS 611.020 to 611.320, inclusive:

1. “Babysitting” means employment to care for children during a short absence of the parents or guardian.

2. “Employment agency” means any person who, for a fee, commission or charge:

(a) Furnishes information to a person seeking employment enabling or tending to enable the person seeking employment to secure employment;

(b) Furnishes information to a person seeking employees enabling or tending to enable the person seeking employees to obtain employees; or

Ê “Employment agency” does not include a recognized labor union, an employer who procures his or her own employees or an employee who procures other employees for his or her employer only.

3. “Gross cash wage” means wages and salary, an allocation for lodging if lodging is furnished in the employment agreement, commissions paid and any other supplemental compensation, excluding tips and bonuses.

4. “Labor Commissioner” means the Labor Commissioner of the State of Nevada.

[1:167:1919; A 1923, 78; NCL § 2835]—(NRS A 1975, 1096; 1985, 533, 1780)

NRS 611.023 Administration by Labor Commissioner; regulations. The Labor Commissioner shall administer the provisions of NRS 611.020 to 611.320, inclusive, and may adopt reasonable regulations to carry out the purposes of these sections.

(Added to NRS by 1975, 1095; A 1985, 1781)

NRS 611.025 Hearings by Labor Commissioner; issuance and enforcement of subpoenas.

1. The Labor Commissioner or a designee of the Labor Commissioner may conduct hearings in the performance of his or her duties as set forth in NRS 611.020 to 611.320, inclusive, and may:

(a) Issue subpoenas for the attendance of witnesses and for the production of papers; and

(b) Administer oaths, examine witnesses and take testimony.

2. If any person fails to comply with any subpoena or order lawfully issued by the Labor Commissioner or the designee or to testify to any matter regarding which the person may be lawfully interrogated, the district court, upon application of the Labor Commissioner or the designee, shall compel obedience to the subpoena or order or require the testimony by proceedings for contempt.

(Added to NRS by 1975, 1096; A 1977, 83; 1981, 95; 1985, 1781)

NRS 611.030 License: Procurement from Labor Commissioner; penalty for doing business without license.

1. A person shall not open, keep, operate or maintain an employment agency in this State without first obtaining a license therefor as provided in NRS 611.020 to 611.320, inclusive, from the Labor Commissioner.

2. No employment agency may solicit any employer in this State and refer or place any person for employment with such employer or otherwise do business in this State unless such employment agency has obtained a license from the Labor Commissioner under the provisions of NRS 611.045.

3. Any person who opens, keeps, operates or maintains an employment agency without first procuring a license is guilty of a misdemeanor.

[Part 2:167:1919; 1919 RL p. 2781; NCL § 2836]—(NRS A 1967, 627; 1975, 1097)

NRS 611.040 Application for license.

1. A written application for a license to conduct a private employment agency in this State must be made to the Labor Commissioner and must contain:

(a) The name and address of the applicant;

(b) The street and number of the building or place where the business is to be conducted; and

(c) The business or occupation in which the applicant was engaged for at least 2 years immediately preceding the date of the application.

2. The application must be accompanied by:

(a) Affidavits of at least two reputable residents of this State stating that the applicant is a person of good moral character; and

(b) Proof that the applicant is a resident of this State.

[3:167:1919; 1919 RL p. 2781; NCL § 2837]—(NRS A 1975, 1097; 1985, 1781)

NRS 611.045 Investigation of applicant; issuance and renewal of license.

1. The Labor Commissioner may issue a license to an applicant for the conduct of an employment agency:

(a) After making an investigation of the applicant and finding that the applicant is of good moral character and has not been convicted of a felony relating to the conduct of an employment agency or any offense involving moral turpitude;

(b) After making an investigation of the premises where the proposed employment agency will be conducted and finding that the premises are suitable for the purpose;

(d) Upon the applicant’s payment of the licensing fee prescribed in NRS 611.060.

2. The Labor Commissioner shall complete an investigation of the applicant within 60 days after such applicant has submitted an application.

3. A license to conduct an employment agency is valid only as to the person and place named in the license and is effective from the date specified therein to and including the next following December 31, unless sooner suspended or revoked.

4. Annually at least 15 days prior to the expiration date of the license, the licensee must apply for renewal in the manner prescribed by regulation of the Labor Commissioner. Pending administrative action on a renewal application, the license may be continued in effect for a period not to exceed 60 days beyond the expiration date of the license.

(Added to NRS by 1975, 1095; A 2003, 2702)

NRS 611.050 Grounds for denial, suspension and revocation of license.

1. The Labor Commissioner, upon reasonable notice and opportunity for a licensed employment agency to be heard, may deny, suspend or revoke its license after finding that it has failed to comply with any provision of NRS 611.020 to 611.320, inclusive.

2. When, in the opinion of the Labor Commissioner, a community is being adequately served by existing licensed employment agencies, the Labor Commissioner may deny the establishment therein of any other employment agency.

[Part 4:167:1919; A 1931, 54; 1931 NCL § 2838]—(NRS A 1975, 1097)

NRS 611.055 Employment agency to be permitted to continue business during pendency of review proceedings. Any employment agency shall be permitted to continue doing business as a licensed agency during the pendency of the proceedings for review of any final order of the Labor Commissioner.

(Added to NRS by 1975, 1096; A 1977, 83)

NRS 611.060 Fees for licenses and renewals. Every person licensed under the provisions of NRS 611.020 to 611.320, inclusive, to carry on the business of an employment agency must pay to the Labor Commissioner a fee of $100 before the license is issued, and thereafter such person must pay a fee of $100 on or before the last day of each year to carry on the business for the following year. No fee may be refunded.

[Part 5:167:1919; A 1923, 78; NCL § 2839]—(NRS A 1975, 1098; 1983, 294)

NRS 611.070 Bond: Amount; conditions; deposits in lieu of bond; increase of bond or deposit; Labor Commissioner’s Account for Bonds.

1. Before a license is issued, the applicant shall deposit with the Labor Commissioner a bond, approved by the Labor Commissioner, in the sum of $1,000 with two or more sureties or an authorized surety company as surety. A notice of 30 days must be given to the Labor Commissioner before cancellation of the bond.

2. The bond must be conditioned so that the suspension, revocation, surrender or expiration of the license to operate the employment agency does not affect the coverage of the bond as to a claim arising out of acts that occurred before the date of the suspension, revocation, surrender or expiration of the license.

3. In lieu of a bond an applicant may deposit with the Labor Commissioner:

(a) An amount of money or bonds of the United States or of the State of Nevada of an actual market value not less than the amount fixed by the Labor Commissioner; or

(b) A savings certificate of a bank, credit union, savings and loan association or savings bank situated in Nevada, which indicates an account containing an amount equal to the amount of the bond which would otherwise be required by this section and that this amount is unavailable for withdrawal except upon order of the Labor Commissioner. Interest earned on this amount accrues to the account of the applicant.

4. The Labor Commissioner may at any time require the licensee to file a new or supplementary bond, or a deposit in lieu thereof, in a form and amount of not more than $5,000 to conform to the provisions of this section if the Labor Commissioner deems the initial deposit or surety of the initial bond to be unsatisfactory or the amount of the deposit or bond to have become insufficient to satisfy all claims, accrued or contingent, against the licensee.

5. Any money received in lieu of a bond must be deposited with the State Treasurer for credit to the Labor Commissioner’s Account for Bonds, which is hereby created in the State Agency Fund for Bonds. The deposit must not be released for a period of 90 days following the date of suspension, revocation, surrender or expiration of the license.

[Part 5:167:1919; A 1923, 78; NCL § 2839]—(NRS A 1965, 67; 1975, 1098; 1977, 571; 1985, 722; 1991, 1798; 1999, 1522)

NRS 611.080 Bond: Payable to people of State of Nevada; conditions. The bond shall be payable to the people of the State of Nevada and shall be conditioned that the person applying for the license will comply with the provisions of NRS 611.020 to 611.320, inclusive, and shall pay all damages occasioned to any person by reason of any misstatement, misrepresentation, fraud or deceit, or any unlawful act or omission of any licensee, made, committed or omitted in the business conducted under the license, or caused by any other violation of such provisions in carrying on the business for which the license is granted.

[Part 5:167:1919; A 1923, 78; NCL § 2839]—(NRS A 1975, 1098)

NRS 611.090 Bond: Failure to file new bond after demand; revocation of license. If at any time the sureties or any of them shall become irresponsible, the licensee shall, upon receipt of notice from the Labor Commissioner, give a new bond, subject to the provisions of NRS 611.070 and 611.080. The failure to give a new bond within 10 days after such notice operates as a revocation of the license. The license shall thereupon be returned to the Labor Commissioner, who shall destroy the license.

[Part 5:167:1919; A 1923, 78; NCL § 2839]—(NRS A 1975, 1098)

NRS 611.100 Deposit of fees for licenses. The Labor Commissioner shall make an itemized account of all money received by him or her as fees for licenses under the provisions of NRS 611.020 to 611.320, inclusive, and shall deposit the money with the State Treasurer in accordance with the provisions of NRS 353.250.

[14:167:1919; 1919 RL p. 2783; NCL § 2848]—(NRS A 1963, 774; 1965, 68; 1975, 1098; 1985, 722)

NRS 611.110 Contents of license. Each license shall contain:

1. The name of the licensee.

2. A designation of the city, street and number of the premises at which the licensee is authorized to carry on the employment agency.

3. The number and date of issuance of the license.

[Part 4:167:1919; A 1931, 54; 1931 NCL § 2838]—(NRS A 1975, 1099)

NRS 611.120 Persons and places protected. No license shall protect any other than the person to whom it is issued nor any places other than those designated in the license.

[Part 4:167:1919; A 1931, 54; 1931 NCL § 2838]

NRS 611.130 Posting of license in employment agency. The license must be posted in a conspicuous place in the employment agency.

[Part 2:167:1919; 1919 RL p. 2781; NCL § 2836]—(NRS A 1975, 1099; 1985, 1781)

NRS 611.135 Claims against licensees: Assignment to Labor Commissioner; disposition of amounts recovered.

1. The Labor Commissioner may accept assignments of claims arising under NRS 611.020 to 611.320, inclusive, against employment agencies.

2. The Labor Commissioner may maintain a commercial account with any bank or credit union within this State for the deposit of any money recovered for the use of such assigning claimants. The money must be promptly paid to the claimants entitled thereto. At the end of each calendar year, any unclaimed money in the commercial account which has been a part of the account for 7 years or more must be paid into the State Treasury for credit to the State General Fund.

(Added to NRS by 1975, 1096; A 1999, 1522)

NRS 611.140 Actions against licensees: Parties; limitation of action; assignment; jurisdiction.

1. All claims or suits brought in any court against any licensee may be brought in the name of the person or persons damaged upon the bond deposited with the Labor Commissioner by the licensee, and may be assigned as other claims for damages in civil suits. An action on the bond may be brought in the name of the State of Nevada by the Labor Commissioner for the use and benefit of such person or persons.

2. An action on the bond must be commenced within 90 days after the cause of action arises. The amount of damages claimed by the plaintiff, and not the penalty named in the bond, shall determine the jurisdiction of the court in which the action is brought.

[Part 6:167:1919; 1919 RL p. 2782; NCL § 2840]—(NRS A 1975, 1099)

NRS 611.150 Actions against licensees: Service of summons. When a licensee has departed from the State with intent to defraud his or her creditors or with intent to avoid a summons in an action brought under NRS 611.140, service shall be made upon the surety as prescribed in the Justice Court Rules of Civil Procedure or the Nevada Rules of Civil Procedure. A copy of the summons shall be mailed to the last known post office address of the residence of the licensee and also to the place where the licensee conducted the employment agency as shown by the records of the Labor Commissioner. Service shall be deemed to be made when not less than such number of days shall have intervened between the dates of service and the return of the same as provided by the rules of the particular court in which suit is brought.

[Part 6:167:1919; 1919 RL p. 2782; NCL § 2840]

NRS 611.160 Records: Maintenance and retention; contents; false entry prohibited.

1. Every licensee shall keep, for 2 years, a record of every applicant for employment who secures employment through the services provided by the licensee. The record must include a copy of the:

(a) Invoice given to the applicant for employment pursuant to NRS 611.180;

(b) Application for employment submitted to the employment agency by the applicant;

(d) Contract between the applicant and the employment agency.

2. A licensee shall not make any false entry in these records.

[7:167:1919; 1919 RL p. 2782; NCL § 2841]—(NRS A 1985, 1781)

NRS 611.170 Records: Inspection by Labor Commissioner; furnishing copy.

1. The premises of a licensed employment agency and all the records kept by the licensee pursuant to NRS 611.020 to 611.320, inclusive, must be made available at all reasonable hours for inspection by the Labor Commissioner.

2. Every licensee shall furnish to the Labor Commissioner on request a true copy of those records.

[8:167:1919; 1919 RL p. 2782; NCL § 2842]—(NRS A 1975, 1099; 1985, 1782)

NRS 611.175 Copy of contract to be given to applicant. At the time an employment agency contracts with an applicant for employment it shall supply the applicant with a copy of the signed contract.

(Added to NRS by 1985, 1780)

NRS 611.180 Invoice to be given to applicant; contents. Every licensee shall give to every applicant for employment from whom a fee is required for securing employment an invoice on which is stated:

1. The name and address of the employment agency;

2. The name and address of the employer;

3. The name of the applicant;

4. The date;

5. The amount of the fee required for the services of the employment agency;

6. The title of the position secured by the applicant;

7. The name of the person authorized to hire employees for the employer; and

8. The amount of the gross cash wage.

[Part 9:167:1919; 1919 RL p. 2782; NCL § 2843]—(NRS A 1985, 1782)

NRS 611.200 Receipts: Issuance; retention of duplicate; required statement. All receipts for the payment of any fees by an applicant for employment must be prepared and numbered in original and duplicate. The original must be given to the applicant paying the fee and the duplicate must be kept on file at the employment agency. Each receipt must have printed on its face in prominent type the following statement:

This agency is licensed by the Labor Commissioner of Nevada.

[Part 9:167:1919; 1919 RL p. 2782; NCL § 2843]—(NRS A 1985, 1783)

NRS 611.210 Approval of forms by Labor Commissioner. The Labor Commissioner shall approve the form of the receipts given, records kept and applications provided by a licensee and the form of the contract used by a licensee for services to applicants for employment. Each licensee shall provide the necessary blanks and other supplies at the licensee’s own expense.

[13:167:1919; 1919 RL p. 2783; NCL § 2847]—(NRS A 1969, 884; 1985, 1783)

NRS 611.220 Limit on fee. No employment agency licensed pursuant to the terms of NRS 611.020 to 611.320, inclusive, may charge, accept or collect from any applicant for employment as a fee for securing the employment any sum of money in excess of 65 percent of the first month’s gross cash wage received for the employment, except babysitting. The fee for a placement for babysitting must not exceed 15 percent of the gross cash wage received.

[Part 9 1/2:167:1919; added 1947, 830; 1943 NCL § 2843.01]—(NRS A 1969, 96; 1975, 1099; 1979, 1032; 1985, 1783)

NRS 611.225 Interest on account past due; charge for returned check. In addition to the regular fee for securing employment, an employment agency may charge an applicant for employment:

1. Interest at the rate of 1.5 percent per month on any account which is more than 30 days past due.

2. Not more than $15 for each check drawn by the applicant which is returned because the applicant had insufficient money or credit with the drawee.

(Added to NRS by 1985, 1780)

NRS 611.230 Posting of notice of limitation of fee. Every employment agency shall keep posted in a conspicuous place in its office or place of business a card or cards, furnished by the Labor Commissioner, upon which must be printed in large black-faced type the following: “No fee may be charged an applicant for employment which exceeds 65 percent of the first month’s gross cash wage.”

[Part 9 1/2:167:1919; added 1947, 830; 1943 NCL § 2843.01]—(NRS A 1969, 96; 1975, 1099; 1985, 1783)

NRS 611.240 Authorization for referral required before acceptance of fee from applicant or referral of applicant. An employment agency shall not accept a fee from any applicant for employment with an employer or refer any applicant for employment to an employer without having obtained orally or in writing an authorization for that referral from the employer or an agent of the employer.

[Part 10:167:1919; 1919 RL p. 2783; NCL § 2844]—(NRS A 1985, 1783)

NRS 611.250 Refunding of fee paid by applicant.

1. If the applicant paying a fee fails to obtain employment, without fault refuses to accept employment, or is employed and the employment lasts less than 7 days, the employment agency shall repay the amount of the fee to the applicant.

2. A refund must be made to an applicant for employment, if the fee was paid:

(a) In cash, within 72 hours;

(b) By a check drawn on a bank located in this State, within 14 days; or

Ê after the applicant requests the refund.

[Part 10:167:1919; 1919 RL p. 2783; NCL § 2844]—(NRS A 1975, 1100; 1985, 1784)

NRS 611.260 Limitation on fee if applicant employed less than 30 days. If the applicant is employed and the employment lasts 7 or more days but less than 30 days, the fee charged the applicant shall not exceed 40 percent of the gross cash wage paid to the applicant.

[Part 10:167:1919; 1919 RL p. 2783; NCL § 2844]—(NRS A 1975, 1100)

NRS 611.265 Prohibited practices. No employment agency may:

1. Impose fees of any kind for the registration of applicants for employment without the written permission of the Labor Commissioner.

2. Cause or attempt to cause the discharge of any person from his or her employment.

3. Require any applicant to subscribe to any publication or incidental service or contribute to the cost of advertising.

4. Refer any applicant to any employment or occupation prohibited by law.

5. Except with the written consent of the Labor Commissioner, conduct an employment agency in a room used for sleeping or as a residence.

6. Use any name, sign or device for advertising bearing a name that is similar to or can reasonably be confused with the name of any governmental agency or another licensed employment agency.

7. Require any applicant to execute any contract or other document relating to the applicant’s liability or obligation concerning employment services except on such forms as are approved by the Labor Commissioner. Any document executed contrary to this subsection is void.

(Added to NRS by 1975, 1095; A 1985, 1784)

NRS 611.270 Publication of false, fraudulent or misleading information; advertisements.

1. An employment agency shall not publish or cause to be published any false, fraudulent or misleading information, representation, notice or advertisement.

2. All advertisements of an employment agency, by means of cards, circulars, signs, or in newspapers and other publications, and all letterheads, receipts, and blanks shall be printed and contain the licensed name and address of the employment agency.

3. A licensee shall not give any false, inaccurate or misleading information or make any false promise or false representation concerning an engagement or employment to any applicant who shall register or apply for employment or help.

[11:167:1919; 1919 RL p. 2783; NCL § 2845]—(NRS A 1975, 1100)

NRS 611.280 Accepting application by child or placing child in employment in violation of chapter 609 of NRS. No employment agency shall accept any application for employment made by or in behalf of any child, or shall place or assist in placing any such child in any employment whatever, in violation of the provisions of chapter 609 of NRS.

[Part 12:167:1919; 1919 RL p. 2783; NCL § 2846]

NRS 611.290 Statement of existence of labor dispute to be furnished applicant; retention of signed copy. An employment agency shall not knowingly send an applicant to any place where a strike, lockout or other labor trouble exists without furnishing the applicant with a written statement of such fact, a copy of which statement, signed by the applicant, shall be kept on file for 1 year.

[Part 12:167:1919; 1919 RL p. 2783; NCL § 2846]—(NRS A 1975, 1100)

NRS 611.300 Division of fees with certain persons prohibited. An employment agency shall not divide fees with an employer, an agent or other employee of an employer or any other person to whom services for employment are provided by the agency.

[Part 12:167:1919; 1919 RL p. 2783; NCL § 2846]—(NRS A 1975, 1100; 1985, 1784)

NRS 611.310 Enforcement by Labor Commissioner; prosecution by district attorney. The Labor Commissioner shall enforce NRS 611.020 to 611.320, inclusive, and when informed of any violations thereof, shall report the fact to the district attorney of the county in which such violation occurred. The district attorney shall prosecute the violator in accordance with law.

[15:167:1919; 1919 RL p. 2784; NCL § 2849]—(NRS A 1975, 1101)

NRS 611.320 Criminal and administrative penalties.

1. Any person who violates any provision of NRS 611.020 to 611.320, inclusive, or any regulation adopted pursuant thereto, is guilty of a misdemeanor.

2. In addition to any other remedy or penalty, the Labor Commissioner may impose against the person an administrative penalty of not more than $5,000 for each such violation.

[16:167:1919; 1919 RL p. 2784; NCL § 2850]—(NRS A 1967, 627; 1975, 1101; 2003, 797)

PROFESSIONAL EMPLOYER ORGANIZATIONS

NRS 611.400 Definitions. As used in NRS 611.400 to 611.490, inclusive, unless the context otherwise requires:

1. “Applicant” means a person seeking a license pursuant to NRS 611.400 to 611.490, inclusive, to operate a professional employer organization.

2. “Client company” means a company which:

(a) Utilizes a professional employer organization, for a fee, to provide labor compliance services, including, without limitation, the management of human resources, employee benefits, payroll and workers’ compensation; or

(b) Leases employees, for a fee, from a professional employer organization pursuant to a written or oral agreement.

3. “Ongoing relationship” means a relationship wherein the rights, duties and obligations of an employer which arise out of an employment relationship are allocated between the professional employer organization and the client company on an ongoing, long-term basis. The term does not include a temporary or project-specific agreement between a professional employer organization and a client company.

4. “Professional employer organization” means a company which, pursuant to a written or oral agreement intended by the parties to create an ongoing relationship:

(a) Provides labor compliance services for a fee, including, without limitation, the management of human resources, employee benefits, payroll and workers’ compensation; or

(b) Places any of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company.

(Added to NRS by 1993, 2419; A 1995, 2135; 1999, 1724; 2009, 1126; 2015, 2678; 2021, 1921)—(Substituted in revision for NRS 616B.670)

NRS 611.410 License required; expiration; penalty.

1. A person shall not operate a professional employer organization in this State unless the person has complied with the provisions of NRS 611.400 to 611.490, inclusive. The Labor Commissioner shall issue a license to each applicant who complies with the provisions of NRS 611.400 to 611.490, inclusive.

2. Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.

3. Each license issued by the Labor Commissioner pursuant to NRS 611.400 to 611.490, inclusive, expires 1 year after it is issued unless renewed before that date.

(Added to NRS by 1993, 2419; A 1999, 1724; 2009, 1126; 2021, 1921)—(Substituted in revision for NRS 616B.673)

NRS 611.420 Written application for issuance or renewal of license must be on approved form. An applicant for the issuance or renewal of a license must submit to the Labor Commissioner a written application upon a form provided by the Labor Commissioner.

(Added to NRS by 1993, 2419; A 1999, 1725; 2021, 1922)—(Substituted in revision for NRS 616B.676)

1. Each application must include:

(a) The applicant’s name and title of his or her position with the professional employer organization.

(b) The applicant’s age, place of birth and social security number.

(d) The business address of the professional employer organization.

(e) The business address of the registered agent of the professional employer organization, if the applicant is not the registered agent.

(f) If the applicant is a:

(1) Partnership, the name of the partnership and the name, address, age, social security number and title of each partner.

(2) Corporation, the name of the corporation and the name, address, age, social security number and title of each officer of the corporation.

(g) Proof of:

(1) Compliance with the provisions of chapter 76 of NRS.

(2) The payment of any premiums for industrial insurance required by chapters 616A to 617, inclusive, of NRS and compliance with NRS 616B.692.

(3) The payment of contributions or payments in lieu of contributions required by chapter 612 of NRS.

(4) Insurance coverage for any benefit plan from an insurer authorized pursuant to title 57 of NRS that is offered by the professional employer organization to its employees.

(h) A financial statement of the applicant setting forth the financial condition of the professional employer organization. Except as otherwise provided in subsection 5, the financial statement must include, without limitation:

(1) For an application for issuance of a license, the most recent audited financial statement that includes the applicant, which must have been completed not more than 13 months before the date of application; or

(2) For an application for renewal of a license, an audited financial statement that includes the applicant and which must have been completed not more than 180 days after the end of the applicant’s fiscal year.

(i) An issuance or renewal fee of $500.

(j) Any other information the Labor Commissioner requires.

2. Each application must be notarized and signed under penalty of perjury:

(a) If the applicant is a sole proprietorship, by the sole proprietor.

(b) If the applicant is a partnership, by each partner.

3. An applicant shall submit to the Labor Commissioner any change in the information required by this section within 30 days after the change occurs. The Labor Commissioner may refuse to issue a license to or revoke the license of a professional employer organization which fails to comply with the provisions of NRS 611.400 to 611.490, inclusive. If the Labor Commissioner refuses to issue or revokes a license pursuant to this subsection, the professional employer organization has the right to appeal the decision of the Labor Commissioner.

4. If an insurer cancels a professional employer organization’s policy, the insurer shall immediately notify the Labor Commissioner in writing. The notice must comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and must be served personally on or sent by first-class mail or electronic transmission to the Labor Commissioner.

5. A financial statement submitted with an application pursuant to this section must be prepared in accordance with generally accepted accounting principles, must be audited by an independent certified public accountant certified or licensed to practice in the jurisdiction in which the accountant is located and must be without qualification as to the status of the professional employer organization as a going concern. Except as otherwise provided in subsection 6, a professional employer organization that has not had sufficient operating history to have an audited financial statement based upon at least 12 months of operating history must present financial statements reviewed by a certified public accountant covering its entire operating history. The financial statements must be prepared not more than 13 months before the submission of an application and must:

(a) Demonstrate, in the statement, positive working capital, as defined by generally accepted accounting principles, for the period covered by the financial statements; or

(b) Be accompanied by a bond, irrevocable letter of credit or securities with a minimum market value equaling the maximum deficiency in working capital for the period covered by the financial statements plus $100,000. The bond, irrevocable letter of credit or securities must be held by a depository institution designated by the Labor Commissioner to secure payment by the applicant of all taxes, wages, benefits or other entitlements payable by the applicant.

6. An applicant required to submit a financial statement pursuant to this section may submit a consolidated or combined audited financial statement that includes, but is not exclusive to, the applicant.

(Added to NRS by 1993, 2419; A 1999, 1725; 2003, 20th Special Session, 217; 2007, 2723; 2009, 1127, 2052; 2011, 1395; 2015, 2678; 2021, 1922)—(Substituted in revision for NRS 616B.679)

1. Shall maintain separate payroll records for the organization and the service. The records must be maintained in this State.

2. Shall not maintain a policy of workers’ compensation insurance which covers both employees of the professional employer organization and employees of the temporary employment service.

(Added to NRS by 1995, 2124; A 2009, 1129; 2021, 1923)—(Substituted in revision for NRS 616B.685)

NRS 611.450 Written agreement regarding employment relationship with leased employees. The employment relationship with workers provided by a professional employer organization to a client company must be established by written agreement between the professional employer organization and the client company. The professional employer organization shall give written notice of the employment relationship to each leased employee assigned to perform services for the client company.

(Added to NRS by 1993, 2420; A 2021, 1924)—(Substituted in revision for NRS 616B.688)

NRS 611.460 Responsibilities of client company and professional employer organization; limitations; joint and several liability of client company.

1. A client company of a professional employer organization as defined in NRS 611.400 shall be deemed to be the employer of the employees it leases for the purposes of chapter 612 of NRS.

2. A professional employer organization shall be deemed to be an employer of its leased employees for the purposes of offering, sponsoring and maintaining any benefit plans. The provisions of this subsection do not affect the employer-employee relationship that exists between a leased employee and a client company.

3. A professional employer organization shall not offer, sponsor or maintain for its leased employees any self-funded insurance program. A professional employer organization shall not act as a self-insured employer or be a member of an association of self-insured public or private employers pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS or title 57 of NRS.

4. If a professional employer organization fails to:

(a) Pay any contributions, premiums, forfeits or interest due; or

(b) Submit any reports or other information required,

Ê pursuant to this chapter or chapter 616A, 616C, 616D or 617 of NRS, the client company is jointly and severally liable for the contributions, premiums, forfeits or interest attributable to the wages of the employees leased to it by the professional employer organization.

(Added to NRS by 1993, 2420; A 1995, 2014, 2135; 1997, 579; 2003, 20th Special Session, 218; 2007, 3340; 2009, 1129; 2011, 3421; 2015, 2680; 2021, 1924)—(Substituted in revision for NRS 616B.691)

NRS 611.470 Assurance organizations: Authority of Labor Commissioner; regulations; independence and approval required.

1. The Labor Commissioner may adopt regulations authorizing and setting forth qualifications for an assurance organization selected by a professional employer organization to act on behalf of the professional employer organization in complying with the requirements of NRS 611.400 to 611.490, inclusive, and any regulations adopted pursuant thereto, including, without limitation, any requirements regarding obtaining or renewing a license. Such an assurance organization must be independent of the professional employer organization and approved by the Labor Commissioner.

2. Nothing in this section or any regulations adopted pursuant thereto:

(a) Limits or otherwise affects the authority of the Labor Commissioner to issue or revoke a license of a professional employer organization subject to the appeals process;

(b) Limits or otherwise affects the authority of the Labor Commissioner to investigate compliance with or enforce any provision of NRS 611.400 to 611.490, inclusive, and any regulations adopted pursuant thereto; or

3. As used in this section, “assurance organization” means a person who meets the qualifications set forth by the Labor Commissioner pursuant to regulations adopted pursuant to subsection 1.

(Added to NRS by 2009, 1123; A 2021, 1927)—(Substituted in revision for NRS 616B.693)

NRS 611.480 Administration and regulations; investigation and enforcement. The Labor Commissioner:

1. Shall administer the provisions of NRS 611.400 to 611.490, inclusive, and may adopt reasonable regulations to carry out those provisions.

2. May investigate compliance with or enforce any provision of NRS 611.400 to 611.490, inclusive, and any regulations adopted pursuant thereto.

(Added to NRS by 1993, 2421; A 1995, 649; 1999, 1726; 2009, 1130; 2021, 1928)—(Substituted in revision for NRS 616B.694)

NRS 611.490 Action for damages for statutory violation; administrative penalties.

1. An action for damages caused by the failure of a professional employer organization to comply with the provisions of NRS 611.400 to 611.490, inclusive, may be brought against any person who is required to sign the application for a license for the professional employer organization.

2. In addition to any other remedy or penalty prescribed by law, the Labor Commissioner may impose against the person an administrative penalty of not more than $5,000 for each such failure.

(Added to NRS by 1993, 2421; A 1999, 1726; 2009, 1130; 2021, 1928)—(Substituted in revision for NRS 616B.697)