Helpful
hints, when applying for
a license For
worker leasing companies
Employee
leasing is an alternative for employers who may not have the time
to, or do not wish to, deal with the administrative functions of employing
full-time workers. In most cases, workers are already established
with the employer. The leasing company will hire these workers and
lease them back to the employer under contract for a fee. Worker-leasing
companies take on the responsibility for payroll, employment taxes,
and workers' compensation assessments. They may also offer workers'
compensation insurance, retirement options and medical benefits.
Worker
leasing is known by a variety of names. Professional Employer Organization
(PEO) is probably the best known. It can also be called "staffing
or management services", employee leasing and staff leasing.
Worker leasing differs from temporary services in that temporaries
provide workers to a client for special situations, i.e., to cover
employee absences, employee leaves, professional skill shortages,
seasonal workloads, and special assignments. Temporary situations
have the expectation that the position(s) will be terminated at completion.
Anything that does not fall into one of those situations may be considered
a leasing arrangement.
Oregon Revised Statute (ORS) 656.850 requires leasing companies to
obtain a license from the Director of the Department of Consumer and
Business Services prior to doing business in Oregon. There are 2 steps
a worker-leasing company should take before submitting an application.
(1)
Register with the office of Secretary of State, Corporations Division,
to conduct business in Oregon. www.filinginoregon.com(2)
Have a workers' compensation coverage policy with proof of coverage
on file with the Workers' Compensation Division (WCD).
The licensing process will be prolonged if these steps are not followed.
As part of the application process, leasing companies are required
to pay $2,050, for a two-year license. Each license automatically
expires after the two-year period unless renewed by the leasing company.
A
"Plan of Operation" must be completed and submitted with
the application. Oregon OSHA rules consider a worker leasing company
jointly responsible, along with the client company, for ensuring job
safety and health. The "Plan of Operation" details what
the worker leasing company will do to ensure that clients follow the
requirements of ORS chapter 654 of the Oregon Occupational Safety
and Health Act.
Worker
leasing companies are required to have a designated Oregon location
with an Oregon telephone number. Also, they must have an authorized
representative in Oregon who is knowledgeable enough to answer inquiries
concerning the business in Oregon. At their Oregon location they must
maintain copies of signed contracts, copies of signed worker-leasing
notices, cancellations of leasing arrangements, and payroll records
for all Oregon employees.
After licensing, the worker leasing company is required to keep WCD
updated on client information and changes to the leasing company's
information. Within fourteen days of the effective date of the leasing
agreement the leasing company must file form 440-2465 (Worker Leasing
Notice), for clients whose workers' compensation coverage is provided
by the leasing company. Leasing companies are also required to file
a copy of the notice with their insurer. After the notices have been
filed and accepted by WCD, the leasing company is responsible for
ensuring that copies of the "Notice of Compliance," Form
440-1188 (1188), are posted at their clients' businesses.
If
there are changes to any information contained on the Worker Leasing
Notice the worker leasing company must file, form 440-3270 (Endorsement
to Worker Leasing Notice) with WCD.
Written
notice of termination is required when a worker leasing arrangement
is terminated, or when the worker leasing company no longer provides
workers' compensation coverage for the client. The Notice of Termination,
form 440-4271, must be sent to the client, the workers' compensation
insurer, and WCD. The termination effective date cannot be sooner
than 30 days after the Department receives the notice.
Changes
to the worker leasing company's designated in-state location, authorized
representative, telephone number, or controlling persons must be made
in writing and received by the Department within 30 days of the date
of change.
A
change in the worker leasing company's form of legal entity requires
that the new entity submit an application to become licensed. A worker
leasing license is not transferable to another entity.
A worker leasing license can be disqualified, suspended or revoked
if the worker leasing company fails to comply with any of these requirements.
There may also be civil penalties imposed for non-compliance.
A
list of active licensed worker-leasing companies can be found on the
WCD Website , along with the application, rules, and forms mentioned
in this article.
Questions or concerns about worker leasing should be directed to the
Worker Leasing Program representative at 503-947-7815 or email.
If you have questions about this webpage, please contact Alice Barghini, 503-947-7544.
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