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342.615 Registration of employee leasing companies -requirements for lessees -- Status of temporary help service.
(1)
(2)
(3)
(4)
(5)
Coverage
As used in this section:
(a) "Employee leasing company" or "lessor" means an entity that grants a
written lease to a lessee pursuant to an employee leasing arrangement;
(b) "Lessee" means an employer that obtains all or part of its workforce from
another entity through an employee leasing arrangement;
(c) "Leased employee" means a person performing services for a lessee
under an employee leasing arrangement;
(d) "Employee leasing arrangement" means an arrangement under contract
or otherwise whereby the lessee leases all or some of its workers from an
employee leasing company. Employee leasing arrangements include, but
are not limited to, full-service employee leasing arrangements, long-term
temporary arrangements, and any other arrangement which involves the
allocation of employment responsibilities among two (2) or more entities.
For purposes of this section, "employee leasing arrangement" does not
include arrangements to provide temporary workers;
(e) "Temporary worker" means a worker who is furnished to an entity to
substitute for a permanent employee on leave or to meet seasonal or
short-term workload conditions for a finite period of time; and
(f) "Temporary help service" means a service whereby an organization hires
its own employees and assigns those employees to clients for finite
periods of time to support or supplement the client's workforce in special
work situations, including employee absences, temporary skill shortages,
and seasonal workloads.
A corporation, partnership, sole proprietorship, or other business entity which
acts as an employee leasing company shall register with the commissioner in
the manner as prescribed by administrative regulations.
Any lessor of employees whose workers' compensation insurance has been
terminated within the past five (5) years in any jurisdiction due to a
determination that an employee leasing arrangement was being utilized to
avoid premiums, taxes, or assessments otherwise payable by lessees shall be
ineligible to register with the commissioner or to remain registered, if previously
registered.
A lessee shall fulfill its statutory responsibility to secure benefits for leased
employees under this chapter by purchasing and maintaining a standard
workers' compensation policy approved by the commissioner of the
Department of Insurance. A lessee may fulfill that responsibility by contracting
with an employee leasing company to purchase and maintain the required
insurance policy. In either event, it shall be the responsibility of the lessee to
maintain in its files at all times the certificate of insurance, or a copy thereof,
evidencing the existence of the required insurance. The exposure and
experience of the lessee shall be used in determining the premium for the
policy and shall include coverage for all leased employees.
A temporary help service shall be deemed the employer of a temporary worker
and shall be subject to the provisions of this chapter.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1836, effective July 15, 2010. -Created 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 36, effective December 12,
1996.
Legislative Research Commission Note (12/12/96). In codifying this statute, the
phrase "employer leasing company" defined in subsection (1)(a) of the statute
has been changed to read "employee leasing company" as being a manifest
clerical or typographical error under KRS 7.136(1)(h). It is clear both from the
terms of this definition itself as well as from the fact that "employee leasing
company," not "employer leasing company," is used within this range of statutes
that the word "employer" should be "employee" in this phrase.
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