2012 Kentucky Revised Statutes CHAPTER 342 WORKERS' COMPENSATION 342.615 Registration of employee leasing companies -- Coverage requirements for lessees -- Status of temporary help service.
Download as PDF
342.615 Registration of employee leasing companies -- Coverage requirements for
lessees -- Status of temporary help service.
(1)
(2)
(3)
(4)
(5)
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 shortterm 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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.