Employee leasing arrangements, coverage required
When a business gets some or all of its workers from another company through an employee leasing deal, it may need to carry separate workers' compensation insurance for those leased workers and its regular workers. Government officials can make rules about how that insurance works, how it gets reported, and how companies qualify to self-insure. If a leasing company only leases workers to one business, the law assumes that business did it to get around paying the right amount for workers' compensation coverage.
287.282. s, coverage required. — 1. the of 1 of section 287.280, every employer who obtains part of his work force from another through an employee leasing arrangement, or who employs the s of an entity through an employee leasing arrangement, may be required to cover his under the provisions of this chapter, through separate coverages or separate on his leased employees and his nonleased employees. The may, by , establish the standards and procedures by which insurance coverage shall be provided to employers using only leased employees, and to employers using both leased and nonleased employees. The of the may, by a rule, establish the standards and procedures for qualification for self-insurance for employers using only leased employees and for employers using both leased and nonleased employees.
2. Such rules shall include, but not be limited to, the of employee leasing arrangements prior to their eligibility for insurance, or self-insurance, the reporting requirements for both employee leasing arrangements and for employers who use such arrangements, the extent to which a 's shall determine the or or other amount for coverage on leased employees, and the procedures by which such coverage or self-insurance on leased employees shall be issued, endorsed, audited, and .
3. For purposes of this section, the term "employee leasing arrangement" shall not include temporary help service arrangements which their employees to clients for a finite period of time to support or supplement the client's work force in special work situations, such as employee absences, temporary skill shortages and seasonal workloads, and which are not utilized as a mechanism of depriving one or more insurers of which otherwise are properly payable.
4. When an employee leasing company leases employees to only one client company and its , there is a that the client company entered into an employee leasing arrangement to avoid the calculation of the proper for payment of through insurance or self-insurance.
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Source & history notes
(L. 1992 H.B. 975 § 2)
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