Bill Text - SB89 (2011)

(New Title) establishing a study committee on the procurement of health insurance by employee leasing companies.


Revision: March 10, 2011, midnight

SB 89 – AS INTRODUCED

2011 SESSION

11-0422

01/10

SENATE BILL 89

AN ACT relative to employee leasing companies.

SPONSORS: Sen. Carson, Dist 14; Rep. Goley, Hills 8; Rep. Marshall Quandt, Rock 13; Rep. Matt Quandt, Rock 13; Rep. Jennifer Coffey, Merr 6

COMMITTEE: Commerce

ANALYSIS

This bill clarifies the procedures for employee benefits and other insurance for employee leasing companies.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0422

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to employee leasing companies.

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

1 Employee Leasing Deemed Co-Employment. Amend RSA 277-B:9, I (a) to read as follows:

(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. [Notification shall be made in compliance with the signed notice as required by regulations issued by the department.] An employee leasing company shall not knowingly rely on materially inaccurate information provided under this paragraph.

2 Employee Leasing Deemed Co-Employment. Amend RSA 277-B:9, II(d)-(f) to read as follows:

(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.

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

(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.

3 Employee Leasing Deemed Co-Employment. Amend RSA 277-B:9, III to read as follows:

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 [10] 20 business days of engagement or termination.

4 Employee Benefits and Other Insurance. RSA 277-B:11, I and II are repealed and reenacted to read as follows:

I. An employee leasing company and a client shall each be deemed an employer under the laws of this state for the purposes of sponsoring employee welfare and retirement plans for its leased employees. Nothing in this section shall require an employee leasing company to provide comparable benefits to employees located at different work sites.

II.(a) An employee leasing company that provides health insurance benefits to its leased employees shall only provide such benefits through a fully- insured policy issued by an insurance carrier admitted to write such coverage in this state. Any such fully-insured welfare benefit plan offered to leased employees of a single employee leasing company shall be treated for purposes of state regulation as a single employer welfare benefit plan and for purposes of RSA 420-G, an employee leasing company that has employed on average at least 51 leased employees on business days during the previous calendar quarter shall be treated as a large employer.

(b) A fully-insured welfare benefit plan under this paragraph shall be exempt from any licensing requirements pursuant to RSA 420-L or 415-E.

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