House Bill 506

Last Action 03/29/22: signed by Governor (Acts Ch. 50)
Title AN ACT relating to the recognition and registration of professional employer organizations.
Bill Documents Acts Chapter 50
Bill Request Number 823
Sponsor P. Pratt
Summary of Original Version Create new sections of KRS Chapter 336 to declare that professional employer organizations provide a valuable service to commerce and should be properly recognized and regulated; define "client," "co-employer," "co-employment relationship," "covered employee," "insurer," "person," "professional employer agreement," "professional employer organization," "professional employer organization group," "professional employer services," "registrant," and "temporary help service"; indicate that covered employees shall be deemed employees of the client for purposes of determining tax credits or economic incentives; require a person providing professional employer services to be registered and to set forth the registration requirements; require professional employer organizations to pay a registration fee; require a professional employer organization to either maintain positive working capital or provide a bond, letter of credit, or security; set forth the rights and responsibilities of parties to a co-employment agreement; set forth the health insurance obligations of professional employer organizations; set forth the workers' compensation requirements of professional employer organizations and the client; set forth the unemployment insurance obligations of the professional employer organization and the client; prohibit a person from knowingly providing professional employer services without becoming registered and set forth actions that may be taken by the Department of Workers' Claims against any person in violation; amend the definition of "premiums received" in KRS 342.0011 to include co-employment relationships with a professional employer organization; amend KRS 342.990 to delete references to KRS 342.615; repeal KRS 342.615; state that the provisions of this Act are severable.
Index Headings of Original Version Economic Development - Incentives, effect of professional employer organization
Labor and Industry - Professional employer organizations, regulation
Personnel and Employment - Professional employer organizations, regulation
Unemployment Compensation - Wages, payment by professional employer organizations
Workers' Compensation - Coverage, requirements for professional employer organizations
Votes Vote History


  • introduced in House
  • to Committee on Committees (H)
  • to Small Business & Information Technology (H)
  • reported favorably, 1st reading, to Calendar
  • 2nd reading, to Rules
  • posted for passage in the Regular Orders of the Day for Friday, February 25, 2022
  • 3rd reading, passed 88-1
  • received in Senate
  • to Committee on Committees (S)
  • to Economic Development, Tourism, & Labor (S)
  • reported favorably, 1st reading, to Calendar
  • 2nd reading, to Rules
  • posted for passage in the Regular Orders of the Day for Tuesday, March 22, 2022
  • 3rd reading, passed 35-1
  • received in House
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor
  • signed by Governor (Acts Ch. 50)

Last updated: 2/8/2023 2:57 PM (EST)