RSA 277-B:9 · Employee Leasing Deemed Co-Employment

277-B:9 Employee Leasing Deemed Co-Employment. – An employee leasing company and a client company shall be deemed co-employers and shall divide employment responsibilities as follows:

Copy link

I.

An employee leasing company shall be solely responsible for:

Copy link

(a)

Paying wages to leased employees. The employee leasing company may rely on initial hiring documentation of wages, ongoing pay change documentation, and reported payroll documentation regarding hours worked or other measured unit of employee compensation received from the client company. An employee leasing company shall not knowingly rely on materially inaccurate information provided under this paragraph.

Copy link

(b)

Preparing and issuing of W-2 forms for leased employees.

Copy link

(c)

Calculating, collecting, and remitting all payroll taxes, including income tax and social security tax, as required by law with respect to leased employees.

Copy link

(d)

Complying with state and federal unemployment compensation requirements, including the reporting of wages paid, making required contributions, and processing claims for benefits on a timely basis as required by New Hampshire law.

Copy link

(e)

Paying for workers' compensation insurance for the leased employees.

Copy link

(f)

Making payments for health or other benefits for leased employees, to the extent the contract calls for the employee leasing company to provide such benefits.

Copy link

(g)

Complying with all laws, rules, and regulations for employee leasing companies under their contract or as required by this state or the federal government.

Copy link

(h)

Paying the tax imposed by RSA 77-E and inclusion in its compensation portion of the base tax those wages paid to its leased employees, unless an election is made pursuant to RSA 77-E:13-a.

Copy link

(i)

Providing to each employee an employee manual outlining the terms and conditions of employment with the leasing company.

Copy link

(j)

Providing an employee grievance system for employees employed by the leasing company.

Copy link

II.

A client company shall be solely responsible for:

Copy link

(a)

Directing and controlling the leased employees as necessary to conduct the client company's business, discharge any applicable fiduciary duty, or comply with any licensure or regulatory or statutory requirement.

Copy link

(b)

The goods and services produced by the client company and its direct and leased employees.

Copy link

(c)

The acts, errors, and omissions of the leased employees committed within the scope of the client company's business or under the direction and control of the client company.

Copy link

(d)

Providing accurate personnel and payroll information, and a record of hours and wages to the employee leasing company and department of labor when requested, as a co-employer on all leased employees as required of employers under RSA 279:27. Notification shall be made in compliance with the signed notice as required by rules adopted by the department.

Copy link

(e)

Complying with all wage and hour laws, including recordkeeping requirements and determinations of exempt and non-exempt status.

Copy link

(f)

Providing a safe workplace to the employees free of all hazards in compliance with the Occupational Safety and Health Act of 1970 and regulations or any similar law. This shall include sole responsibility for compliance with the requirements of RSA 281-A:64 and similar requirements or regulations.

Copy link

(g)

Complying with all laws prohibiting employment discrimination, harassment, and retaliation on the basis of any protected class or characteristic.

Copy link

(h)

Paying all expenses arising from unionization, negotiating collective bargaining agreements, and processing grievances and unfair labor practice charges related to the client company or the leased employees.

Copy link

(i)

Complying with all applicable professional license or bonding requirements pertaining to the client company's business and maintaining professional liability coverage.

Copy link

(j)

Assuming and accepting responsibility for all compensation paid to any employee that is not paid through the employee leasing relationship or reported to the employee leasing company. Responsibility shall include but shall not be limited to all payroll taxes, federal and state taxes, additional premium for insurances including but not limited to workers' compensation insurance, and additional matching contributions if any.

Copy link

(k)

Assuming and accepting all responsibilities, as defined under New Hampshire law, of an employer when hiring or employing individuals separately and not included in the contract with the employee leasing company.

Copy link

III.

The employee leasing company shall notify the commissioner of employment security and the commissioner of the department of labor in writing of all new and terminated client companies within 20 business days of engagement or termination. Source. 1994, 405:1. 1996, 243:5, 6. 2009, 308:8, eff. Sept. 29, 2009. 2011, 249:1-3, eff. Sept. 11, 2011. 2015, 216:3, eff. July 1, 2015.

Copy link