SB475: relative to employee leasing companies.

SB 475 - AS INTRODUCED

2004 SESSION

04-3189

05/09

SENATE BILL 475

AN ACT relative to employee leasing companies.

SPONSORS: Sen. Clegg, Dist 14; Sen. Barnes, Dist 17; Rep. Adams, Hills 43

COMMITTEE: Insurance

ANALYSIS

This bill further defines the wage and benefits obligations of employee leasing companies.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04-3189

05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Four

AN ACT relative to employee leasing companies.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Employee Leasing Companies Deemed Employer. Amend RSA 277-B:9, II to read as follows:

II. The employee leasing company provides satisfactory evidence to the commissioner that the leased employees are covered by a workers' compensation policy issued by an insurance carrier admitted to write such coverage in this state. Nothing in this section shall have any effect on the statutory obligation of a client company to secure workers' compensation coverage for employees not provided, supplied, or maintained by an employee leasing company pursuant to an employee leasing agreement.

2 Employee Leasing Companies Deemed Employer. Amend RSA 277-B:9, IX to read as follows:

IX. The employee leasing company is legally responsible for the payment of wages and other benefits due an employee, and state unemployment contributions, without regard to whether the client company pays the employee leasing company for such wages, benefits and contributions. In this section, the term "wages and benefits" does not include any obligation between a client company and an employee for payments beyond or in addition to the employee's salary, draw, or regular rate of pay, such as bonuses, commissions, severance pay, deferred compensation, profit sharing, or vacation, sick or other paid time off pay, unless the employee leasing company has agreed in writing to both the client company and the employee that it assumes responsibility for such payments.

3 New Paragraph; Workers' Compensation Insurance; Certification. Amend RSA 277-B:11-a by inserting after paragraph III the following new paragraph:

IV. Notwithstanding RSA 277-B-9, the client shall be deemed the employer for purposes of compliance with the requirements of RSA 281-A:25-a, RSA 281-A:64, and RSA 281-A:23-b.

4 Effective Date. This act shall take effect 60 days after its passage.