Pursuant to KRS 336.236, every person desiring to provide professional employer services in Kentucky must be registered with the Department of Workers' Claims. Persons operating as a professional employer organization or employee leasing company on July 14,2022, must register before July 15, 2024, or they can no longer continue to provide professional employer services. Professional employer organizations not operating on July 14, 2022, must register before providing services in Kentucky.
Due to HB506, Professional Employer Organizations (also known as PEO's) and PEO Groups are required to be registered with the Department of Workers' Claims in order to do business in the state of Kentucky. The Department of Workers' Claims is responsible for regulating companies in the business of providing professional employer services, regardless of its use of term, or conducting business as a “staff leasing company”, “registered staff leasing company”, “employee leasing company”, “administrative employer”, or any other name. These services may include, but are not limited to: employee benefits, payroll, workers’ compensation, recruiting, risk/safety management, and training and development. A professional employer organization or professional employer organization group that fails to file its renewal application within 180 days of the last day of its fiscal year shall be required to apply as if it had never been registered unless it has sought and received an extension from the Department of Workers' Claims.