HB 239

1	A bill to be entitled
2	An act relating to employee leasing companies; amending s.
3	468.525, F.S.; requiring that certain specified conditions
4	be included in the contractual arrangement between an
5	employee leasing company and its client companies;
6	amending s. 468.529, F.S.; requiring an employee leasing
7	company to notify its employees if the employee leasing
8	company terminates its agreement with a client company;
9	providing the dates the cancellation of workers'
10	compensation coverage is effective; requiring an employee
11	leasing company to secure workers' compensation coverage
12	from an insurance company authorized in this state;
13	providing that an employee leasing company and its client
14	companies are considered an "employer" for the purposes of
15	the workers' compensation law; amending s. 440.02, F.S.;
16	providing that the term "employment" for purposes of
17	workers' compensation coverage includes employment
18	performed by a leased employee; amending s. 440.11, F.S.;
19	providing that immunity from liability for certain acts
20	extends to an employee leasing company and certain other
21	specified entities; reenacting s. 626.112(1), F.S.,
22	relating to the licensing of insurance agents, insurance
23	adjusters, and customer representatives to incorporate the
24	amendment to s. 468.525, F.S., in a reference thereto;
25	providing an effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1.  Paragraph (f) of subsection (4) of section
30	468.525, Florida Statutes, is amended, and paragraph (g) is
31	added to that subsection, to read:
32	468.525  License requirements.--
33	(4)  The employee leasing company's contractual
34	arrangements with its client companies shall satisfy the
35	following conditions, whereby the leasing company:
36	(f)  Gives has given written notice of the relationship
37	between the employee leasing company and the client company to
38	each leased employee it assigns to perform services at the
39	client's worksite and gives written notice to all leased
40	employees as to whether the employee leasing company or the
41	client company is providing their workers' compensation
42	coverage.
43	(g)  Sets forth whether each leased employee will be
44	covered by a workers' compensation policy issued to the employee
45	leasing company or to the client company.
46	Section 2.  Section 468.529, Florida Statutes, is amended
47	to read:
48	468.529  Licensee's insurance; employment tax; benefit
49	plans.--
50	(1)  A licensed employee leasing company is the employer of
51	the leased employees, except that this provision is not intended
52	to affect the determination of any issue arising under Pub. L.
53	No. 93-406, the Employee Retirement Income Security Act, as
54	amended from time to time. An employee leasing company is shall
55	be responsible for timely payment of unemployment taxes pursuant
56	to chapter 443, and is shall be responsible for providing
57	workers' compensation coverage under pursuant to chapter 440.
58	However, a no licensed employee leasing company may not shall
59	sponsor a plan of self-insurance for health benefits, except as
60	may be permitted by the provisions of the Florida Insurance Code
61	or, if applicable, by Pub. L. No. 93-406, the Employee
62	Retirement Income Security Act, as amended from time to time.
63	For purposes of this section, a "plan of self-insurance"
64	excludes shall exclude any arrangement where an admitted
65	insurance carrier has issued a policy of insurance primarily
66	responsible for the obligations of the health plan.
67	(2)  An initial or renewal license may not be issued to any
68	employee leasing company unless the employee leasing company
69	first files with the board evidence of workers' compensation
70	coverage for all leased employees in this state. Each employee
71	leasing company shall maintain and make available to its
72	workers' compensation carrier the following information:
73	(a)  The correct name and federal identification number of
74	each client company.
75	(b)  A listing of all covered employees provided to each
76	client company, by classification code.
77	(c)  The total eligible wages by classification code and
78	the premiums due to the carrier for the employees provided to
79	each client company.
80	(3)  A licensed employee leasing company shall within 30
81	days after initiation or termination notify its workers'
82	compensation insurance carrier, the Division of Workers'
83	Compensation of the Department of Financial Services, and the
84	state agency providing unemployment tax collection services
85	under contract with the Agency for Workforce Innovation through
86	an interagency agreement pursuant to s. 443.1316 of both the
87	initiation or the termination of the company's relationship with
88	any client company.
89	(4)(a)  If an employee leasing company terminates its
90	relationship with any client company, the employee leasing
91	company must send notice of the termination to the last known
92	address of each leased employee who had been coemployed with the
93	terminated client company. The notification must include the
94	date the employee leasing company terminated its relationship
95	with the client company.
96	(b)  A leased employee coemployed by the terminated client
97	company is not covered by the workers' compensation policy of
98	the employee leasing company after the employee leasing company
99	terminates its relationship with the client company. Termination
100	of the employee's workers' compensation coverage is effective at
101	the earliest of:
102	1.  Three days after the employee leasing company mails a
103	notice of termination to the last known address of the
104	terminated leased employee; or
105	2.  Upon the terminated leased employee learning that he or
106	she is no longer an employee of the client company or employee
107	leasing company.
108	(c)  If an employee leasing company continues its
109	relationship with a client company but terminates the employment
110	of, lays off, or places on a leave of absence a leased employee
111	who is coemployed with the client company, the leased employee
112	is not covered by the workers' compensation policy of the
113	employee leasing company at the earliest of:
114	1.  Three days after the employee leasing company mails a
115	notice to the last known address of the leased employee
116	informing the leased employee that he or she is no longer a
117	leased employee of the employee leasing company, is on a leave
118	of absence from the client company or employee leasing company,
119	or is on layoff status from the client company or employee
120	leasing company; or
121	2.  Upon the leased employee learning that he or she is no
122	longer an employee of the client company or employee leasing
123	company, is on a leave of absence from the client company or
124	employee leasing company, or is on laid-off status from the
125	client company or employee leasing company.
126	(d)  If a leased employee receives and accepts a direct
127	deposit of a paycheck from a client company formerly under
128	contract with an employee leasing company or receives or accepts
129	payment in cash or by paycheck which contains no reference
130	indicating that the payment is from the employee leasing company
131	for employment services rendered for a client company, the
132	receipt or acceptance is conclusive proof that the employee has
133	received notice that he or she is no longer a leased employee of
134	the employee leasing company and is no longer covered by the
135	employee leasing company's workers' compensation policy. Except
136	as otherwise required by law, any other benefit provided by an
137	employee leasing company to its leased employees ceases upon the
138	termination of the leased employee's employment with the
139	employee leasing company.
140	(5)  The responsibility to obtain workers' compensation
141	coverage for leased employees from an insurance carrier
142	authorized to do business in this state by way of a master
143	policy issued in the name of the employee leasing company, a
144	multiple coordinated policy issued to the employee leasing
145	company, a policy issued to the client company, or any other
146	policy acceptable under the laws of this state must be
147	specifically allocated in the employee leasing agreement to the
148	client company or the employee leasing company.
149	(6)  At the termination of the agreement, the employee
150	leasing company must offer to the client company an opportunity,
151	at a reasonable time and location, to receive records regarding
152	the loss experience of the workers' compensation insurance
153	during the course of the agreement.
154	(7)  The client company and the employee leasing company
155	shall be considered the employer for purposes of coverage under
156	chapter 440. Section 440.11 applies to the employee leasing
157	company and the client company and to all other persons set
158	forth in s. 440.11(2) irrespective of whether workers'
159	compensation coverage is provided to the leased employee by the
160	client company or the employee leasing company.
161	(8)(4)  An initial or renewal license may not be issued to
162	any employee leasing company unless the employee leasing company
163	first provides evidence to the board, as required by board rule,
164	that the employee leasing company has paid all of the employee
165	leasing company's obligations for payroll, payroll-related
166	taxes, workers' compensation insurance, and employee benefits.
167	All disputed amounts must be disclosed in the application.
168	(9)(5)  The provisions of this section are subject to
169	verification by department or board audit.
170	Section 3.  Paragraph (b) of subsection (17) of section
171	440.02, Florida Statutes, is amended to read:
172	440.02  Definitions.--When used in this chapter, unless the
173	context clearly requires otherwise, the following terms shall
174	have the following meanings:
175	(17)
176	(b)  "Employment" includes:
177	1.  Employment by the state and all political subdivisions
178	thereof and all public and quasi-public corporations therein,
179	including officers elected at the polls.
180	2.  All private employments in which four or more employees
181	are employed by the same employer or, with respect to the
182	construction industry, all private employment in which one or
183	more employees are employed by the same employer.
184	3.  Volunteer firefighters responding to or assisting with
185	fire or medical emergencies whether or not the firefighters are
186	on duty.
187	4.  Employment performed by a leased employee under chapter
188	468.
189	Section 4.  Subsection (2) of section 440.11, Florida
190	Statutes, is amended to read:
191	440.11  Exclusiveness of liability.--
192	(2)  The immunity from liability described in subsection
193	(1) extends shall extend to an employee leasing company, North
194	American Industry Classification System Code 561330, licensed
195	under chapter 468; to a temporary help services company, North
196	American Industry Classification System Code 561320; to each
197	employer to whom the employee leasing company or temporary help
198	services company assigns their employees; and to each of their
199	respective employees, whether the workers' compensation coverage
200	is provided to the leased employees or temporary help services
201	employees by the licensed employee leasing company, the
202	temporary help services company, or the employer. employer and
203	to each employee of the employer which utilizes the services of
204	the employees of a help supply services company, as set forth in
205	Standard Industry Code Industry Number 7363, when such
206	employees, whether management or staff, are acting in
207	furtherance of the employer's business. An employee so engaged
208	by the employer shall be considered a borrowed employee of the
209	employer, and, for the purposes of this section, shall be
210	treated as any other employee of the employer. The employer is
211	shall be liable for and shall secure the payment of compensation
212	to all such borrowed employees as required in s. 440.10, except
213	when the such payment has been secured by the help supply
214	services company.
215	Section 5.  For the purpose of incorporating the amendment
216	made by this act to section 468.525, Florida Statutes, in a
217	reference thereto, subsection (1) of section 626.112, Florida
218	Statutes, is reenacted to read:
219	626.112  License and appointment required; agents, customer
220	representatives, adjusters, insurance agencies, service
221	representatives, managing general agents.--
222	(1)(a)  No person may be, act as, or advertise or hold
223	himself or herself out to be an insurance agent, insurance
224	adjuster, or customer representative unless he or she is
225	currently licensed by the department and appointed by an
226	appropriate appointing entity or person.
227	(b)  Except as provided in subsection (6) or in applicable
228	department rules, and in addition to other conduct described in
229	this chapter with respect to particular types of agents, a
230	license as an insurance agent, service representative, customer
231	representative, or limited customer representative is required
232	in order to engage in the solicitation of insurance. For
233	purposes of this requirement, as applicable to any of the
234	license types described in this section, the solicitation of
235	insurance is the attempt to persuade any person to purchase an
236	insurance product by:
237	1.  Describing the benefits or terms of insurance coverage,
238	including premiums or rates of return;
239	2.  Distributing an invitation to contract to prospective
240	purchasers;
241	3.  Making general or specific recommendations as to
242	insurance products;
243	4.  Completing orders or applications for insurance
244	products;
245	5.  Comparing insurance products, advising as to insurance
246	matters, or interpreting policies or coverages; or
247	6.  Offering or attempting to negotiate on behalf of
248	another person a viatical settlement contract as defined in s.
249	626.9911.
250
251	However, an employee leasing company licensed pursuant to
252	chapter 468 which is seeking to enter into a contract with an
253	employer that identifies products and services offered to
254	employees may deliver proposals for the purchase of employee
255	leasing services to prospective clients of the employee leasing
256	company setting forth the terms and conditions of doing
257	business; classify employees as permitted by s. 468.529; collect
258	information from prospective clients and other sources as
259	necessary to perform due diligence on the prospective client and
260	to prepare a proposal for services; provide and receive
261	enrollment forms, plans, and other documents; and discuss or
262	explain in general terms the conditions, limitations, options,
263	or exclusions of insurance benefit plans available to the client
264	or employees of the employee leasing company were the client to
265	contract with the employee leasing company. Any advertising
266	materials or other documents describing specific insurance
267	coverages must identify and be from a licensed insurer or its
268	licensed agent or a licensed and appointed agent employed by the
269	employee leasing company. The employee leasing company may not
270	advise or inform the prospective business client or individual
271	employees of specific coverage provisions, exclusions, or
272	limitations of particular plans. As to clients for which the
273	employee leasing company is providing services pursuant to s.
274	468.525(4), the employee leasing company may engage in
275	activities permitted by ss. 626.7315, 626.7845, and 626.8305,
276	subject to the restrictions specified in those sections. If a
277	prospective client requests more specific information concerning
278	the insurance provided by the employee leasing company, the
279	employee leasing company must refer the prospective business
280	client to the insurer or its licensed agent or to a licensed and
281	appointed agent employed by the employee leasing company.
282	Section 6.  This act shall take effect July 1, 2008.

CODING: Words stricken are deletions; words underlined are additions.