287.282. Employee leasing arrangements, coverage required.

Employee leasing arrangements, coverage required.

287.282. 1. Notwithstanding the provisions of subsection 1 of section287.280, every employer who obtains part of his work force from another entitythrough an employee leasing arrangement, or who employs the services of anentity through an employee leasing arrangement, may be required to cover hisliability under the provisions of this chapter, through separate coverages orseparate self-insurance on his leased employees and his nonleased employees.The director of the department of insurance, financial institutions andprofessional registration may, by rule, establish the standards and proceduresby which insurance coverage shall be provided to employers using only leasedemployees, and to employers using both leased and nonleased employees. Thedirector of the division of workers' compensation may, by a rule, establishthe standards and procedures for qualification for self-insurance foremployers using only leased employees and for employers using both leased andnonleased employees.

2. Such rules shall include, but not be limited to, the registration ofemployee leasing arrangements prior to their eligibility for insurance, orself-insurance, the information reporting requirements for both employeeleasing arrangements and for employers who use such arrangements, the extentto which a client employer's experience shall determine the premium or bond orother security amount for coverage on leased employees, and the procedures bywhich such coverage or self-insurance on leased employees shall be issued,endorsed, audited, cancelled and nonrenewed.

3. For purposes of this section, the term "employee leasing arrangement"shall not include temporary help service arrangements which assign theiremployees to clients for a finite period of time to support or supplement theclient's work force in special work situations, such as employee absences,temporary skill shortages and seasonal workloads, and which are not knowinglyutilized as a mechanism of depriving one or more insurers of premiums whichotherwise are properly payable.

4. When an employee leasing company leases employees to only one clientcompany and its affiliates, there is a rebuttable presumption that the clientcompany entered into an employee leasing arrangement to avoid the calculationof the proper contribution rate for payment of workers' compensation throughinsurance or self-insurance.

(L. 1992 H.B. 975 § 2)