Chapter 4133 | Alternate Employer Organizations

Section 4133.01 | Definitions.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

As used in this chapter:

(A) "Alternate employer organization" means a sole proprietor, partnership, association, limited liability company, or corporation that enters into an agreement with one or more client employers for purposes of providing human resource management services and sharing employer responsibility and liability.

(B) "Alternate employer organization agreement" means a written contract between a client employer and an alternate employer organization to provide human resource management services and to share employer responsibilities and liabilities.

(C) "Client employer" means a sole proprietor, partnership, association, limited liability company, or corporation that enters into an alternate employer organization agreement and shares employer responsibility and liability with the alternate employer organization.

(D) "Trade secret" has the same meaning as in section 1333.61 of the Revised Code.

(E) "Working capital" means the excess of current assets over current liabilities as determined by generally accepted accounting principles.

(F) "Worksite employee" means an individual assigned to a client employer on a permanent basis, not as a temporary supplement to the client employer's workforce, and who is employed by both an alternate employer organization and a client employer pursuant to an alternate employer organization agreement.

Section 4133.02 | Rules.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

The administrator of workers' compensation shall adopt rules in accordance with Chapter 119. of the Revised Code to administer and enforce this chapter, including rules to administer and enforce division (E) of section 4133.03 of the Revised Code.

The administrator may adopt rules for the acceptance of electronic filings in accordance with Chapter 1306. of the Revised Code for applications, documents, reports, and other filings required by this chapter.

Section 4133.03 | Alternate employer organization duties.

• Effective: September 28, 2021
• Latest Legislation: House Bill 75 - 134th General Assembly

(A) The alternate employer organization with whom a worksite employee is employed shall do all of the following:

(1) Process and pay all wages and applicable state and federal payroll taxes associated with the worksite employee, irrespective of payments made by the client employer, pursuant to the terms and conditions of compensation in the alternate employer organization agreement between the alternate employer organization and the client employer;

(2) Pay all related payroll taxes associated with a worksite employee independent of the terms and conditions contained in the alternate employer organization agreement between the alternate employer organization and the client employer;

(3) Maintain workers' compensation coverage, pay all workers' compensation premiums, and manage all workers' compensation claims, filings, and related procedures associated with a worksite employee in compliance with Chapters 4121. and 4123. of the Revised Code, except that when worksite employees include family farm officers, ordained ministers, or corporate officers of the client employer, payroll reports shall include the entire amount of payroll associated with those persons;

(4) Annually provide written notice to each worksite employee it assigns to perform services to a client employer of the relationship between and the responsibilities of the alternate employer organization and the client employer;

(5) Maintain complete records separately listing the manual classifications of each client employer and the payroll reported to each manual classification for each client employer for each payroll reporting period during the time period covered in the alternate employer organization agreement;

(6) Maintain a record of workers' compensation claims for each client employer;

(7) Make periodic reports, as determined by the administrator of workers' compensation, of client employers and total workforce to the administrator;

(8) Report individual client employer payroll, claims, and classification data under a separate and unique subaccount to the administrator;

(9) Within fourteen days after receiving notice from the bureau of workers' compensation that a refund or rebate will be applied to workers' compensation premiums, provide a copy of that notice to any client employer to whom that notice is relevant;

(10) Annually certify to the administrator that all client employer federal payroll taxes have been timely and appropriately paid, and on request of the administrator, provide proof of payment.

(B) In any alternate employer organization agreement between an alternate employer organization and a client employer, the client employer shall be listed as the employer on the W-2 forms of the worksite employees, but the alternate employer organization remains jointly and severally liable for all applicable local, state, and federal withholding and employer-paid taxes with respect to the worksite employees.

(C) An alternate employer organization shall file federal payroll taxes entirely under the tax identification number of the client employer, but shall remain jointly and severally liable for all wages and payroll taxes associated with worksite employees. In addition, if any of the alternate employer organization's clients fail to transmit payment to the alternate employer organization sufficient to cover payment of all wages and employer-paid taxes, the alternate employer organization shall keep a record of the nonpayment or underpayment and a record that the alternate employer organization nonetheless paid the wages and taxes owed.

(D) An alternate employer organization may not provide partial or split workers' compensation coverage for worksite employees in which the client employer provides that coverage for some, but not all, of the client employer's worksite employees. On entering into an alternate employer organization agreement, all worksite employees shall be covered under the workers' compensation policy of the alternate employer organization.

(E) The alternate employer organization with whom a worksite employee is employed shall provide a list of all of the following information to the client employer on the written request of the client employer:

(1) All workers' compensation claims, premiums, and payroll associated with that client employer;

(2) Compensation and benefits paid and reserves established for each claim listed under division (E)(1) of this section;

(3) Any other information available to the alternate employer organization from the bureau of workers' compensation regarding that client employer.

(F)(1) An alternate employer organization shall provide the information required under division (E) of this section in writing to the requesting client employer within forty-five days after receiving a written request from the client employer.

(2) For purposes of division (F) of this section, an alternate employer organization has provided the required information to the client employer when the information is received by the United States postal service or when the information is personally delivered, in writing, directly to the client employer.

(G) Except as provided in section 4133.11 of the Revised Code and unless otherwise agreed to in the alternate employer organization agreement, the alternate employer organization with whom a worksite employee is employed has a right of direction and control over each worksite employee assigned to a client employer's location. However, a client employer shall retain sufficient direction and control over a worksite employee as is necessary to do any of the following:

(1) Conduct the client employer's business, including training and supervising worksite employees;

(2) Ensure the quality, adequacy, and safety of the goods or services produced or sold in the client employer's business;

(3) Discharge any fiduciary responsibility that the client employer may have;

(4) Comply with any applicable licensure, regulatory, or statutory requirement of the client employer.

(H) Unless otherwise agreed to in the alternate employer organization agreement, liability for acts, errors, and omissions shall be determined as follows:

(1) An alternate employer organization shall not be liable for the acts, errors, and omissions of a client employer or a worksite employee when those acts, errors, and omissions occur under the direction and control of the client employer.

(2) A client employer shall not be liable for the acts, errors, and omissions of an alternate employer organization or a worksite employee when those acts, errors, and omissions occur under the direction and control of the alternate employer organization.

(I) Nothing in divisions (G) and (H) of this section shall be construed to limit any liability or obligation specifically agreed to in the alternate employer organization agreement.

(J) An alternate employer organization is not, and shall not be considered, a professional employer organization, as defined in section 4125.01 of the Revised Code. Beginning on and after January 1, 2022, an alternate employer organization may not hold itself out, advertise, or otherwise identify itself in any way as a professional employer organization.

(K) In an alternate employer organization agreement, both the client employer and alternate employer organization are jointly and severally liable for the payment of employee wages and taxes. The alternate employer organization and client employer share in the employer responsibilities and liabilities with respect to a worksite employee, pursuant to the alternate employer organization agreement.

(L) The use of a client employer's tax identification number for federal payroll tax purposes as required under division (C) of this section shall not be construed to absolve the alternate employer organization of any responsibilities or liabilities applicable to an alternate employer organization, including those under federal law.

Last updated August 4, 2021 at 2:19 PM

Section 4133.04 | Employer for purposes of workers' compensation.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

(A) When a client employer enters into an alternate employer organization agreement with an alternate employer organization, the alternate employer organization is the employer of record and the succeeding employer for the purposes of determining a workers' compensation experience rating pursuant to Chapter 4123. of the Revised Code.

(B) Pursuant to Section 35 of Article II, Ohio Constitution, and section 4123.74 of the Revised Code, the exclusive remedy for a worksite employee to recover for injuries, diseases, or death incurred in the course of and arising out of the employment relationship against either the alternate employer organization or the client employer are those benefits provided under Chapters 4121. and 4123. of the Revised Code.

Section 4133.05 | Employer liability.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

A worksite employee under an alternate employer organization agreement shall not, solely as a result of being a worksite employee, be considered an employee of the alternate employer organization for purposes of general liability insurance, fidelity bonds, surety bonds, employer liability not otherwise covered by Chapters 4121. and 4123. of the Revised Code, or liquor liability insurance carried by the alternate employer organization, unless the alternate employer organization agreement and applicable prearranged employment contract, insurance contract, or bond specifically states otherwise.

Section 4133.06 | Employer for purposes of taxes and economic incentives.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

(A) For purposes of determining tax credits and other economic incentives that are provided by this state or any political subdivision and based on employment, worksite employees under an alternate employer organization agreement shall be considered employees solely of the client employer.

(1) A client employer shall be entitled to the benefit of any tax credit, economic incentive, or similar benefit arising as the result of the client employer's employment of worksite employees. If the grant or amount of any tax credit, economic incentive, or other benefit is based on number of employees, each client employer shall be treated as employing only those worksite employees employed by the client employer. Worksite employees working for other client employers of the alternate employer organization shall not be counted as employees for that purpose.

(2) Upon request by a client employer or an agency or department of this state, an alternate employer organization shall provide employment information reasonably required by the agency or department responsible for administration of the tax credit or economic incentive and necessary to support any request, claim, application, or other action by a client employer seeking the tax credit or economic incentive.

(B) Worksite employees whose services are subject to sales tax shall be considered the employees of the client employer for purposes of collecting and levying sales tax on the services performed by the worksite employee. Nothing contained in this chapter shall relieve a client employer or alternate employer organization of any sales tax liability with respect to its goods or services.

(C) Any tax assessed on a per capita or per employee basis shall be assessed against the client employer for worksite employees and against the alternate employer organization for employees of the alternate employer organization who are not worksite employees employed with a client employer.

(D) For purposes of computing any tax that is imposed or calculated upon the basis of total payroll, the alternate employer organization shall be eligible to use any small business allowance or exemption based solely on the employees of the alternate employer organization who are not worksite employees with any client employer. The eligibility of a client employer for the allowance or exemption shall be based solely upon the payroll of the employees of the client employer, including any worksite employees employed by the client employer.

Section 4133.07 | Registration and renewal.

• Effective: September 28, 2021
• Latest Legislation: House Bill 75 - 134th General Assembly

(A) Not later than thirty days after its formation, an alternate employer organization operating in this state shall register with the administrator of workers' compensation on forms provided by the administrator. Following initial registration, each alternate employer organization shall register with the administrator annually on or before the thirty-first day of December.

(B) Initial registration and each annual registration renewal shall include all of the following:

(1) A list of each of the alternate employer organization's client employers current as of the date of registration for purposes of initial registration or current as of the date of annual registration renewal, or within fourteen days of adding or releasing a client, that includes the client employer's name, address, federal tax identification number, and bureau of workers' compensation risk number;

(2) A fee as determined by the administrator;

(3) The name or names under which the alternate employer organization conducts business;

(4) The address of the alternate employer organization's principal place of business and the address of each office it maintains in this state;

(5) The alternate employer organization's taxpayer or employer identification number;

(6) A list of each state in which the alternate employer organization has operated in the preceding five years, and the name, corresponding with each state, under which the alternate employer organization operated in each state, including any alternative names, names of predecessors, and if known, successor business entities;

(7) The most recent financial statement prepared and audited pursuant to division (B) of section 4133.08 of the Revised Code;

(8) A letter of credit in accordance with division (D)(1) of this section;

(9) An attestation of the accuracy of the data submissions from the chief executive officer, president, or other individual who serves as the controlling person of the alternate employer organization.

(C) Upon terms and for periods that the administrator considers appropriate, the administrator may issue a limited registration to an alternate employer organization that provides all of the following items:

(1) A properly executed request for limited registration on a form provided by the administrator;

(2) All information and materials required for registration in divisions (B)(1) to (6) of this section;

(3) Information and documentation necessary to show that the alternate employer organization satisfies all of the following criteria:

(a) It is domiciled outside of this state.

(b) It is licensed or registered as an alternate employer organization in another state.

(c) It does not maintain an office in this state.

(d) It does not participate in direct solicitations for client employers located or domiciled in this state.

(e) It has fifty or fewer worksite employees employed or domiciled in this state on any given day.

(D)(1) An alternate employer organization shall provide security in the form of a letter of credit assignable to the Ohio bureau of workers' compensation in an amount necessary to meet the financial obligations of the alternate employer organization pursuant to this chapter and Chapters 4121. and 4123. of the Revised Code. The administrator shall determine the amount of the letter of credit required under this division for each registrant, which shall be at least one million dollars.

(2) An alternate employer organization may appeal the amount of the security required pursuant to rules adopted under division (D)(1) of this section in accordance with section 4123.291 of the Revised Code.

(3) An alternate employer organization shall pay premiums and assessments for purposes of Chapters 4121. and 4123. of the Revised Code on a monthly basis pursuant to division (A) of section 4123.35 of the Revised Code.

(E) Notwithstanding division (D) of this section, an alternate employer organization that qualifies for self-insurance or retrospective rating under section 4123.29 or 4123.35 of the Revised Code shall abide by the financial disclosure and security requirements pursuant to those sections and the rules adopted under those sections in place of the requirements specified in division (D) of this section or specified in rules adopted pursuant to that division.

(F) Except to the extent necessary for the administrator to administer the statutory duties of the administrator and for employees of the state to perform their official duties, all records, reports, client lists, and other information obtained from an alternate employer organization under divisions (A), (B), and (C) of this section are confidential and shall be considered trade secrets and shall not be published or open to public inspection.

(G) The list described in division (B)(1) of this section shall be considered a trade secret.

(H) The administrator shall establish the fee described in division (B)(2) of this section in an amount that does not exceed the cost of the administration of the initial and renewal registration process.

(I) A financial statement required under division (B)(7) of this section for initial registration shall be the most recent financial statement of the alternate employer organization and shall not be older than thirteen months. For each registration renewal, the alternate employer organization shall file the required financial statement within one hundred eighty days after the end of the alternate employer organization's entity's fiscal year. An alternate employer organization may apply to the administrator for an extension beyond that time if the alternate employer organization provides the administrator with a letter from the alternate employer organization's auditor stating the reason for delay and the anticipated completion date.

(J) Multiple, unrelated alternate employer organizations shall not combine together for purposes of obtaining workers' compensation coverage or for forming any type of self-insurance arrangement available under this chapter.

(K) An alternate employer organization may not own or co-own an affiliated professional employer organization or alternate employer organization.

(L) The administrator shall maintain a list of alternate employer organizations registered under this section that is readily available to the public by electronic or other means.

(M)(1) An alternate employer organization may assist a client employer in procuring a health benefit plan as a broker or otherwise, but shall not act as the employer or sponsor of a health benefit plan.

(2) As used in this division:

(a) "Health benefit plan" means a policy, contract, certificate, agreement, or other program offered to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including benefit plans marketed in the individual or group market by all associations, whether bona fide or non-bona fide. "Health benefit plan" also means a limited benefit plan.

(b) "Health care services" has the same meaning as in section 3922.01 of the Revised Code.

Last updated August 4, 2021 at 2:20 PM

Section 4133.08 | Financial statements.

• Effective: September 28, 2021
• Latest Legislation: House Bill 75 - 134th General Assembly

(A) An alternate employer organization shall maintain positive working capital at initial or annual registration, as reflected in the financial statements submitted to the bureau of workers' compensation. If a deficit in working capital is reflected in the financial statements submitted to the bureau, the alternate employer organization shall submit to the administrator of workers' compensation a quarterly financial statement for each calendar quarter during which there is a deficit in working capital, accompanied by an attestation of the chief executive officer, president, or other individual who serves as the controlling person of the alternate employer organization that all wages, taxes, workers' compensation premiums, and employee benefits have been paid by the alternate employer organization. The letter of credit required under division (D)(1) of section 4133.07 of the Revised Code shall be held by a depository designated by the administrator and shall secure payment by the alternate employer organization of all taxes, wages, benefits, or other entitlements due or otherwise pertaining to worksite employees, if the alternate employer organization does not make those payments when due.

(B) An alternate employer organization shall prepare financial statements in accordance with generally accepted accounting principles and submit them for registration and registration renewal under section 4133.07 of the Revised Code. The financial statements shall be audited by an independent alternate public accountant authorized to practice in the jurisdiction in which that accountant is located.

(1) The resulting report of the auditor shall not include either of the following:

(a) A qualification or disclaimer of opinion as to adherence to generally accepted accounting principles;

(b) A statement expressing substantial doubt about the ability of the alternate employer organization to continue as a going concern.

(2) However, if an alternate employer organization does not have at least twelve months of operating history on which to base financial statements, the financial statements shall be reviewed by a certified public accountant.

(3) Notwithstanding division (B)(1)(a) of this section, if an alternate employer organization is a subsidiary or is related to a variable interest entity, the alternate employer organization or alternate employer organization entity may submit financial statements of the alternate employer organization.

(C) The bureau shall deny initial or annual registration to an applicant that does not meet the requirements of this section.

Last updated August 4, 2021 at 2:52 PM

Section 4133.09 | Denial and revocation of registrations.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

(A) In accordance with Chapter 119. of the Revised Code, the administrator of the bureau of workers' compensation may deny registration or revoke the registration of an alternate employer organization and rescind its status as an employer upon a finding that the alternate employer organization has done any of the following:

(1) Obtained or attempted to obtain registration through misrepresentation, misstatement of a material fact, or fraud;

(2) Misappropriated any funds of the client employer;

(3) Used fraudulent or coercive practices to obtain or retain business or demonstrated financial irresponsibility;

(4) Failed to appear, without reasonable cause or excuse, in response to a subpoena lawfully issued by the administrator;

(5) Failed to comply with the requirements of this chapter.

(B) The administrator's decision to deny or revoke an alternate employer organization's registration or to rescind its status as an employer is stayed pending the exhaustion of all administrative appeals by the alternate employer organization.

The administrator shall adopt rules that require that when an employer contacts the bureau of workers' compensation to determine whether a particular alternate employer organization is registered, if the administrator has denied or revoked that alternate employer organization's registration or rescinded its status as an employer, and if all administrative appeals are not yet exhausted when the employer inquires, the appropriate bureau personnel shall inform the inquiring employer of the denial, revocation, or rescission and the fact that the alternate employer organization has the right to appeal the administrator's decision.

(C) Upon revocation of the registration of an alternate employer organization, each client employer associated with that alternate employer organization shall file payroll reports and pay workers' compensation premiums directly to the administrator on its own behalf at a rate determined by the administrator based solely on the claims experience of the client employer.

(D) Upon revocation of an alternate employer organization's registration, each client employer associated with that alternate employer organization shall file on its own behalf the appropriate documents or data with all state and federal agencies as required by law with respect to any worksite employee the client employer and the alternate employer organization shared.

Section 4133.10 | Workers' compensation lease termination notices.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

(A) As used in this section, "self-insuring employer" has the same meaning as in section 4123.01 of the Revised Code.

(B) Not later than thirty calendar days after the date on which an alternate employer organization agreement is terminated, the alternate employer organization is adjudged bankrupt, the alternate employer organization ceases operations within the state of Ohio, or the registration of the alternate employer organization is revoked, the alternate employer organization shall submit to the administrator of workers' compensation and each client employer associated with that alternate employer organization a completed workers' compensation lease termination notice form provided by the administrator. The completed form shall include all client payroll and claim information listed in a format specified by the administrator and notice of all workers' compensation claims that have been reported to the alternate employer organization in accordance with its internal reporting policies.

(C)(1) If a alternate employer organization that is a self-insuring employer is required to submit a workers' compensation lease termination notice form under division (B) of this section, not later than thirty calendar days after the lease termination the alternate employer organization shall submit all of the following to the administrator for any years necessary for the administrator to develop a state fund experience modification factor for each client employer involved in the lease termination:

(a) The payroll of each client employer involved in the lease termination, organized by manual classification and year;

(b) The medical and indemnity costs of each client employer involved in the lease termination, organized by claim;

(c) Any other information the administrator may require to develop a state fund experience modification factor for each client employer involved in the lease termination.

(2) The administrator may require an alternate employer organization to submit the information required under division (C)(1) of this section at additional times after the initial submission if the administrator determines that the information is necessary for the administrator to develop a state fund experience modification factor.

(3) The administrator may revoke or refuse to renew an alternate employer organization's status as a self-insuring employer if the alternate employer organization fails to provide information requested by the administrator under division (C)(1) or (2) of this section.

(D) The administrator shall use the information provided under division (C) of this section to develop a state fund experience modification factor for each client employer involved in a lease termination with an alternate employer organization that is a self-insuring employer.

(E) An alternate employer organization shall report any transfer of employees between related alternate employer organization entities to the administrator within fourteen calendar days after the date of the transfer on a form prescribed by the administrator. The alternate employer organization shall include in the form all client payroll and claim information regarding the transferred employees listed in a format specified by the administrator and a notice of all workers' compensation claims that have been reported to the alternate employer organization in accordance with the internal reporting policies of the alternate employer organization.

(F) Prior to entering into an alternate employer organization agreement with a client employer, an alternate employer organization shall disclose in writing to the client employer the reporting requirements that apply to the alternate employer organization under division (C) of this section and that the administrator must develop a state fund experience modification factor for each client employer involved in a lease termination with an alternate employer organization that is a self-insuring employer.

Section 4133.11 | Occupational licensing laws.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

Nothing in this chapter exempts an alternate employer organization, client employer, or worksite employee from any applicable federal, state, or local licensing, registration, or certification statutes or regulations. An individual required to obtain and maintain a license, registration, or certification under law and who is a worksite employee of an alternate employer organization and a client employer is an employee of the client employer for purposes of obtaining and maintaining the appropriate license, registration, or certification as required by law. An alternate employer organization does not engage in any occupation, trade, or profession that requires a license, certification, or registration solely by entering into an alternate employer organization agreement with a client employer or employing a worksite employee.

A client employer shall have the sole right of direction and control of the professional or licensed activities of worksite employees and of the client employer's business. The worksite employees and client employers shall remain subject to regulation by the board, commission, or agency responsible for licensing, registration, or certification of the worksite employees or client employers.

Section 4133.12 | Collective bargaining.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

Nothing contained in this chapter or in any alternate employer organization agreement shall affect, modify, or amend any collective bargaining agreement that exists on the effective date of this section. Nothing in this chapter shall alter the rights or obligations of any client employer, alternate employer organization, or worksite employee under the "National Labor Relations Act," 49 Stat. 449, 29 U.S.C. 151 et seq., the "Railway Labor Act," 44 Stat. 577, 45 U.S.C. 151, or any other applicable federal or state law.

Section 4133.13 | Limitations.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

Nothing contained in this chapter or in any alternate employer organization agreement shall do any of the following:

(A) Diminish, abolish, or remove the rights and obligations of client employers and worksite employees existing prior to the effective date of the alternate employer organization agreement;

(B) Affect, modify, or amend any contractual relationship or restrictive covenant between a worksite employee and any client employer in effect at the time an alternate employer organization agreement becomes effective;

(C) Prohibit or amend any contractual relationship or restrictive covenant between a client employer and a worksite employee that is entered into after the alternate employer organization agreement becomes effective;

(D) Create any new or additional enforcement right of a worksite employee against an alternate employer organization that is not specifically provided by the alternate employer organization agreement or this chapter.

An alternate employer organization shall have no responsibility or liability in connection with, or arising out of, any contractual relationship or restrictive covenant between a client employer and a worksite employee unless the alternate employer organization has specifically agreed otherwise in writing.

Section 4133.14 | Status as a small, minority-owned, disadvantaged, women-owned, or historically underutilized business.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

For purposes of a bid, contract, purchase order, or agreement entered into with the state or any political subdivision, a client employer's status or certification as a small, minority-owned, disadvantaged, or women-owned business enterprise or as a historically underutilized business shall not be affected as a result of the client employer entering into an alternate employer organization agreement or using the services of an alternate employer organization.

Section 4133.99 | Penalties.

• Effective: March 24, 2021
• Latest Legislation: Senate Bill 201 - 133rd General Assembly

Whoever recklessly violates division (A) of section 4133.07 of the Revised Code is guilty of a minor misdemeanor. Whoever knowingly violates division (A) of section 4133.07 of the Revised Code is guilty of a misdemeanor of the second degree.