23-569. Financial capability; bonding

141 words·~1 min read·/az/title-23/23-569

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Every professional employer organization that is located in this state shall maintain either of the following:

1. A minimum net worth of at least $100,000.

2. A bond, an irrevocable letter of credit or securities that have a minimum market value of $100,000. The bond shall be held by an insured depository institution in order to secure the payment of all taxes, wages, benefits or other entitlements, including amounts expended by the industrial commission's special fund under section 23-907 that are due to be paid by the professional employer organization with respect to covered employees if the professional employer organization fails to make the required payments.

Any bond, irrevocable letter of credit or securities that are deposited under this section shall not be included for the purposes of calculating the minimum net worth of the professional employer organization under this section.