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A bill to be entitled

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An act relating to employee leasing companies; amending s.

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468.525, F.S.; requiring that certain specified conditions

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be included in the contractual arrangement between an

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employee leasing company and its client companies;

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amending s. 468.529, F.S.; requiring an employee leasing

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company to notify its employees if the employee leasing

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company terminates its agreement with a client company;

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providing the dates the cancellation of workers'

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compensation coverage is effective; requiring an employee

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leasing company to secure workers' compensation coverage

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from an insurance company authorized in this state;

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providing that an employee leasing company and its client

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companies are considered an "employer" for the purposes of

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the workers' compensation law; amending s. 440.02, F.S.;

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providing that the term "employment" for purposes of

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workers' compensation coverage includes employment

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performed by a leased employee; amending s. 440.11, F.S.;

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providing that immunity from liability for certain acts

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extends to an employee leasing company and certain other

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specified entities; reenacting s. 626.112(1), F.S.,

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relating to the licensing of insurance agents, insurance

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adjusters, and customer representatives to incorporate the

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amendment to s. 468.525, F.S., in a reference thereto;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Paragraph (f) of subsection (4) of section

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468.525, Florida Statutes, is amended, and paragraph (g) is added

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to that subsection, to read:

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     468.525  License requirements.--

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     (4)  The employee leasing company's contractual arrangements

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with its client companies shall satisfy the following conditions,

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whereby the leasing company:

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     (f) Gives has given written notice of the relationship

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between the employee leasing company and the client company to

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each leased employee it assigns to perform services at the

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client's worksite and gives written notice to all leased

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employees as to whether the employee leasing company or the

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client company is providing their workers' compensation coverage.

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     (g) Sets forth whether each leased employee will be covered

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by a workers' compensation policy issued to the employee leasing

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company or to the client company.

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     Section 2.  Section 468.529, Florida Statutes, is amended to

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read:

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     468.529  Licensee's insurance; employment tax; benefit

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plans.--

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     (1)  A licensed employee leasing company is the employer of

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the leased employees, except that this provision is not intended

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to affect the determination of any issue arising under Pub. L.

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No. 93-406, the Employee Retirement Income Security Act, as

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amended from time to time. An employee leasing company is shall

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be responsible for timely payment of unemployment taxes pursuant

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to chapter 443, and is shall be responsible for providing

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workers' compensation coverage under pursuant to chapter 440.

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However, a no licensed employee leasing company may not shall

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sponsor a plan of self-insurance for health benefits, except as

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may be permitted by the provisions of the Florida Insurance Code

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or, if applicable, by Pub. L. No. 93-406, the Employee Retirement

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Income Security Act, as amended from time to time. For purposes

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of this section, a "plan of self-insurance" excludes shall

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exclude any arrangement where an admitted insurance carrier has

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issued a policy of insurance primarily responsible for the

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obligations of the health plan.

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     (2)  An initial or renewal license may not be issued to any

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employee leasing company unless the employee leasing company

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first files with the board evidence of workers' compensation

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coverage for all leased employees in this state. Each employee

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leasing company shall maintain and make available to its workers'

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compensation carrier the following information:

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     (a)  The correct name and federal identification number of

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each client company.

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     (b)  A listing of all covered employees provided to each

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client company, by classification code.

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     (c)  The total eligible wages by classification code and the

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premiums due to the carrier for the employees provided to each

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client company.

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     (3)  A licensed employee leasing company shall within 30

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days after initiation or termination notify its workers'

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compensation insurance carrier, the Division of Workers'

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Compensation of the Department of Financial Services, and the

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state agency providing unemployment tax collection services under

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contract with the Agency for Workforce Innovation through an

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interagency agreement pursuant to s. 443.1316 of both the

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initiation or the termination of the company's relationship with

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any client company.

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     (4)(a) If an employee leasing company terminates its

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relationship with any client company, the employee leasing

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company must send notice of the termination to the last known

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address of each leased employee who had been coemployed with the

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terminated client company. The notification must include the date

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the employee leasing company terminated its relationship with the

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client company.

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     (b) A leased employee coemployed by the terminated client

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company is not covered by the workers' compensation policy of the

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employee leasing company after the employee leasing company

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terminates its relationship with the client company. Termination

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of the employee's workers' compensation coverage is effective at

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the earliest of:

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     1. Three days after the employee leasing company mails a

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notice of termination to the last known address of the terminated

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leased employee; or

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     2. Upon the terminated leased employee learning that he or

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she is no longer an employee of the client company or employee

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leasing company.

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     (c) If an employee leasing company continues its

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relationship with a client company but terminates the employment

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of, lays off, or places on a leave of absence a leased employee

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who is coemployed with the client company, the leased employee is

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not covered by the workers' compensation policy of the employee

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leasing company at the earliest of:

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     1. Three days after the employee leasing company mails a

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notice to the last known address of the leased employee informing

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the leased employee that he or she is no longer a leased employee

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of the employee leasing company, is on a leave of absence from

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the client company or employee leasing company, or is on layoff

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status from the client company or employee leasing company; or

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     2. Upon the leased employee learning that he or she is no

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longer an employee of the client company or employee leasing

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company, is on a leave of absence from the client company or

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employee leasing company, or is on laid-off status from the

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client company or employee leasing company.

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     (d) If a leased employee receives and accepts a direct

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deposit of a paycheck from a client company formerly under

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contract with an employee leasing company or receives or accepts

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payment in cash or by paycheck which contains no reference

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indicating that the payment is from the employee leasing company

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for employment services rendered for a client company, the

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receipt or acceptance is conclusive proof that the employee has

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received notice that he or she is no longer a leased employee of

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the employee leasing company and is no longer covered by the

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employee leasing company's workers' compensation policy. Except

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as otherwise required by law, any other benefit provided by an

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employee leasing company to its leased employees ceases upon the

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termination of the leased employee's employment with the employee

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leasing company.

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     (5) The responsibility to obtain workers' compensation

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coverage for leased employees from an insurance carrier

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authorized to do business in this state by way of a master policy

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issued in the name of the employee leasing company, a multiple

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coordinated policy issued to the employee leasing company, a

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policy issued to the client company, or any other policy

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acceptable under the laws of this state must be specifically

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allocated in the employee leasing agreement to the client company

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or the employee leasing company.

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     (6) At the termination of the agreement, the employee

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leasing company must offer to the client company an opportunity,

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at a reasonable time and location, to receive records regarding

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the loss experience of the workers' compensation insurance during

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the course of the agreement.

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     (7) The client company and the employee leasing company

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shall be considered the employer for purposes of coverage under

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chapter 440. Section 440.11 applies to the employee leasing

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company and the client company and to all other persons set forth

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in s. 440.11(2) irrespective of whether workers' compensation

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coverage is provided to the leased employee by the client company

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or the employee leasing company.

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     (8)(4) An initial or renewal license may not be issued to

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any employee leasing company unless the employee leasing company

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first provides evidence to the board, as required by board rule,

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that the employee leasing company has paid all of the employee

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leasing company's obligations for payroll, payroll-related taxes,

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workers' compensation insurance, and employee benefits. All

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disputed amounts must be disclosed in the application.

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     (9)(5) The provisions of this section are subject to

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verification by department or board audit.

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     Section 3.  Paragraph (b) of subsection (17) of section

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440.02, Florida Statutes, is amended to read:

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     440.02  Definitions.--When used in this chapter, unless the

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context clearly requires otherwise, the following terms shall

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have the following meanings:

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     (17)

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     (b)  "Employment" includes:

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     1.  Employment by the state and all political subdivisions

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thereof and all public and quasi-public corporations therein,

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including officers elected at the polls.

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     2.  All private employments in which four or more employees

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are employed by the same employer or, with respect to the

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construction industry, all private employment in which one or

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more employees are employed by the same employer.

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     3.  Volunteer firefighters responding to or assisting with

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fire or medical emergencies whether or not the firefighters are

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on duty.

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     4. Employment performed by a leased employee under chapter

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468.

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     Section 4.  Subsection (2) of section 440.11, Florida

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Statutes, is amended to read:

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     440.11  Exclusiveness of liability.--

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     (2)  The immunity from liability described in subsection (1)

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extends shall extend to an employee leasing company, North

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American Industry Classification System Code 561330, licensed

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under chapter 468; a temporary help services company, North

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American Industry Classification System Code 561320; to each

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employer to whom the employee leasing company or temporary help

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services company assigns their employees; and to each of their

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respective employees, whether the workers' compensation coverage

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is provided to the leased employees or temporary help services

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employees by the licensed employee leasing company, the temporary

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help services company, or the employer. employer and to each

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employee of the employer which utilizes the services of the

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employees of a help supply services company, as set forth in

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Standard Industry Code Industry Number 7363, when such employees,

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whether management or staff, are acting in furtherance of the

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employer's business. An employee so engaged by the employer shall

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be considered a borrowed employee of the employer, and, for the

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purposes of this section, shall be treated as any other employee

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of the employer. The employer is shall be liable for and shall

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secure the payment of compensation to all such borrowed employees

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as required in s. 440.10, except when the such payment has been

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secured by the help supply services company.

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     Section 5.  For the purpose of incorporating the amendment

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made by this act to section 468.525, Florida Statutes, in a

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reference thereto, subsection (1) of section 626.112, Florida

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Statutes, is reenacted to read:

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     626.112  License and appointment required; agents, customer

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representatives, adjusters, insurance agencies, service

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representatives, managing general agents.--

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     (1)(a)  No person may be, act as, or advertise or hold

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himself or herself out to be an insurance agent, insurance

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adjuster, or customer representative unless he or she is

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currently licensed by the department and appointed by an

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appropriate appointing entity or person.

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     (b)  Except as provided in subsection (6) or in applicable

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department rules, and in addition to other conduct described in

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this chapter with respect to particular types of agents, a

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license as an insurance agent, service representative, customer

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representative, or limited customer representative is required in

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order to engage in the solicitation of insurance. For purposes of

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this requirement, as applicable to any of the license types

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described in this section, the solicitation of insurance is the

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attempt to persuade any person to purchase an insurance product

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by:

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     1.  Describing the benefits or terms of insurance coverage,

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including premiums or rates of return;

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     2.  Distributing an invitation to contract to prospective

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purchasers;

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     3.  Making general or specific recommendations as to

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insurance products;

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     4.  Completing orders or applications for insurance

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products;

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     5.  Comparing insurance products, advising as to insurance

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matters, or interpreting policies or coverages; or

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     6.  Offering or attempting to negotiate on behalf of another

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person a viatical settlement contract as defined in s. 626.9911.

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However, an employee leasing company licensed pursuant to chapter

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468 which is seeking to enter into a contract with an employer

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that identifies products and services offered to employees may

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deliver proposals for the purchase of employee leasing services

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to prospective clients of the employee leasing company setting

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forth the terms and conditions of doing business; classify

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employees as permitted by s. 468.529; collect information from

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prospective clients and other sources as necessary to perform due

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diligence on the prospective client and to prepare a proposal for

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services; provide and receive enrollment forms, plans, and other

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documents; and discuss or explain in general terms the

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conditions, limitations, options, or exclusions of insurance

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benefit plans available to the client or employees of the

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employee leasing company were the client to contract with the

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employee leasing company. Any advertising materials or other

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documents describing specific insurance coverages must identify

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and be from a licensed insurer or its licensed agent or a

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licensed and appointed agent employed by the employee leasing

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company. The employee leasing company may not advise or inform

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the prospective business client or individual employees of

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specific coverage provisions, exclusions, or limitations of

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particular plans. As to clients for which the employee leasing

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company is providing services pursuant to s. 468.525(4), the

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employee leasing company may engage in activities permitted by

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ss. 626.7315, 626.7845, and 626.8305, subject to the restrictions

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specified in those sections. If a prospective client requests

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more specific information concerning the insurance provided by

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the employee leasing company, the employee leasing company must

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refer the prospective business client to the insurer or its

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licensed agent or to a licensed and appointed agent employed by

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the employee leasing company.

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     Section 6.  This act shall take effect July 1, 2008.