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2000 SESSION

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HB 1271 Workers' compensation; professional employer organizations.

Introduced by: John H. Rust, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Workers’ compensation; professional employer organizations. Requires any entity desiring to engage in the business of providing professional employer services to register with the Workers’ Compensation Commission before it undertakes to provide such services. A professional employer organization may obtain workers’ compensation insurance in its own name for all co-employees that it shares or that are allocated to it pursuant to the agreement between the professional employer organization and the client company. If the professional employer arrangement obtains workers' compensation insurance covering its co-employees, its policy shall cover all employees at the workforce of the client company, other than those covered by the client company's policy. The bill also (i) authorizes insurers to audit any professional employer arrangement to ensure that the appropriate premium is charged for workers' compensation insurance coverage and (ii) provides that a professional employer arrangement shall not be deemed to be engaged in the occupation, trade or profession of its client company solely as the result of providing services to that company.

SUMMARY AS PASSED HOUSE:

Workers’ compensation; professional employer organizations. Requires any person desiring to engage in the business of providing professional employer services to register with the Workers’ Compensation Commission before it undertakes to provide such services. Each such notification shall indicate, by client company, if the professional employer organization will provide workers’ compensation insurance and whether the client company will obtain separate workers’ compensation insurance. A professional employer organization may obtain workers’ compensation insurance in its own name for all co-employees that it shares or that are allocated to it pursuant to the agreement between the professional employer organization and the client company. If the professional employer arrangement obtains workers' compensation insurance covering its co-employees, its policy shall cover all employees at the workforce of the client company, other than those covered by the client company's policy. The bill also establishes guidelines for the experience modification factor applicable to the workers' compensation insurance policy of the professional employer arrangement. A registered professional employer arrangement shall be deemed an employer of its co-employees and may assume the responsibilities of (i) paying wages and collecting, reporting, and paying employment taxes of its co-employees; (ii) securing workers' compensation coverage for its co-employees in its own name; and (iii) aggregating its co-employees under a single employer plan for the purpose of providing employee benefits. The bill also (i) authorizes insurers to audit any professional employer arrangement to ensure that the appropriate premium is charged for workers' compensation insurance coverage and (ii) provides that a professional employer arrangement shall not be deemed to be engaged in the occupation, trade or profession of its client company solely as the result of providing services to that company.

SUMMARY AS INTRODUCED:

Workers’ compensation; professional employer organizations. Requires any person desiring to engage in the business of providing professional employer services to register with the Workers’ Compensation Commission before it undertakes to provide such services. Each such notification shall indicate, by client company, if the professional employer organization will provide workers’ compensation insurance and whether the client company will obtain separate workers’ compensation insurance. A professional employer organization may obtain workers’ compensation insurance in its own name for all co-employees that it shares or that are allocated to it pursuant to the agreement between the professional employer organization and the client company. If the professional employer arrangement obtains workers' compensation insurance covering its co-employees, its policy shall cover all employees at the workforce of the client company, other than those covered by the client company's policy. The bill also establishes guidelines for the experience modification factor applicable to the workers' compensation insurance policy of the professional employer arrangement. A registered professional employer arrangement shall be deemed an employer of its co-employees and may assume the responsibilities of (i) paying wages and collecting, reporting, and paying employment taxes of its co-employees; (ii) securing workers' compensation coverage for its co-employees in its own name; and (iii) aggregating its co-employees under a single employer plan for the purpose of providing employee benefits, other than self-insurance for health benefits except as permitted by ERISA. The bill also (i) authorizes insurers to audit any professional employer arrangement to ensure that the appropriate premium is charged for workers' compensation insurance coverage and (ii) provides that a professional employer arrangement shall not be deemed to be engaged in the occupation, trade or profession of its client company solely as the result of providing services to that company.