336.240 Requirement to maintain positive working capital or provide a bond,

166 words·~1 min read·/ky/336-240

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irrevocable letter of credit, or securities. Except as provided in KRS 336.236, each professional employer organization or collectively each professional employer organization group shall either:

(1)Maintain positive working capital as indicated by current assets minus current

liabilities and defined by generally accepted accounting principles at registration as

reflected in the financial statements submitted to the Department of Workers'

Claims with the initial registration or with each annual renewal registration; or

(2)Provide a bond, irrevocable letter of credit, or securities with a minimum market

value equaling the deficiency plus one hundred thousand dollars ($100,000) to the

Department of Workers' Claims if the professional employer organization or

professional employer organization group does not have positive working capital.

The bond shall be held by a depository designated by the Department of Workers'

Claims, securing payment by the professional employer organization of all taxes,

wages, benefits, or other entitlement due to or with respect to covered employees

should the professional employer organization fail to make payments when due.