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Using the services of a vendor to provide all or some of their
employees for a fee has become an increasingly popular option
for employers. These arrangements serve to provide employers
an alternative to the traditional management and administration
of the employee workforce.
Employee leasing arrangements (also known as Professional
Employer Organization arrangements) can cause problems related
to the proper determination of workers compensation premium.
This occurs when confusion exists as to which party, client
or vendor is the employer. Other issues include:
- Proper classification
- Payroll determination
- Experience modification application
In 1991, the National Association
of Insurance Commissioners issued the
Model Employee Leasing Act. It supported
the concept of multiple coordinated
policies, whereby separate policies,
classifications, and experience modifications
are maintained for each client employer.
In recent years, the growth of this
industry and the enactment of state
laws have changed the way these arrangements
operate.
The state charts provide a current
picture of the employee leasing issue
at the state level. The charts include
specific requirements related to:
- Policy issuance
- Data reporting
- Experience rating
- Endorsement requirements
Information
is available for clickable states
below. Information for some states
is unavailable where existing laws
and rules do not specify treatment
of these arrangements. If you prefer
not to use the map below, select List
Format.
Maine's Employee Leasing
rules and forms are being reviewed
by the State Insurance Department.
To review a particular
state's statutes for more details regarding
the treatment of employee leasing companies,
please see the Cornell Law Library's
web site: http://www.law.cornell.edu/statutes.html |
