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Workers’ Compensation – Employee Leasing Agreements

On September 13, 2017, New Jersey Governor Chris Christie signed legislation (S.B. 2512) amending the state’s workers’ compensation law regarding the provision of workers’ compensation insurance under employee leasing agreements.

 

Among other things, the bill provides that:

 

  • Every employee leasing agreement must provide that the employee leasing company must provide workers’ compensation insurance for their covered employees, unless the client company, in agreement with the employee leasing company, elects to assume the responsibility of providing the workers’ compensation insurance coverage for those employees in an arrangement with an employee leasing company, and the employee leasing company provides notice of the election and proof of coverage to the Department of Labor and Workforce Development within 30 days of the election or once forms or procedures are decided by the department.
  • A client company that assumes the responsibility to provide workers’ compensation insurance required by an employee leasing agreement, must provide a copy of the agreement to the insurance carrier licensed in the State of New Jersey that issues the policy for the covered employees prior to the issuance of the policy or upon entering an employee leasing agreement, as appropriate. The agreement must contain a legal mailing address for the employee leasing company and the client company is required to update that address if it changes over the policy period.
  • If a policy issued to a client company is cancelled pursuant to N.J. Rev. Stat. § 34:15-81, the insurance carrier licensed in the State of New Jersey that issues the policy must provide the employee leasing company copies of all notices required to be issued to the client company pursuant to § 34:15-81 with at least 10 days’ notice by regular mail at the address set forth in the employee leasing agreement, as updated.

 

The bill went into effect upon signing.

 

Read NJ S.B. 2512