On June 3, 2021, Nevada Governor Steve Sisolak (D) signed SB 55 (Chapter 322). The law makes several key changes to Nevada’s PEO statue, including:
- The term “employee leasing company” is replaced with the preferable term “professional employer organization.”
- Oversight of PEOs is transferred to the Office of the Labor Commissioner from the Department of Industrial Relations.
- As part of this move in oversight, the measure also grants Labor Commissioner Shannon Chambers the authority to adopt regulations governing assurance organizations. While similar language appeared in existing law, assurance organizations were not previously utilized. In discussions between NAPEO and Commissioner Chambers, she committed to using assurance organizations moving forward.
- The definitions of “client company” and “professional employer organization” are expanded to allow PEOs to manage the labor compliance services of the client company without hiring and leasing back the client company’s employees
- The law makes a technical change requiring operators of PEOs in the state to be licensed (the law previously required “registration”), but it adds no additional regulatory burden.
The new provisions were made effective July 1, 2021.