Bill Text: OR HB2535 | 2013 | Regular Session | Engrossed

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Bill Title: Relating to employees provided by temporary service provider.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2535 Detail]

Download: Oregon-2013-HB2535-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1579

                           A-Engrossed

                         House Bill 2535
                  Ordered by the House April 23
            Including House Amendments dated April 23

Sponsored by Representative HOLVEY (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.

    { - Requires workers' compensation premium rates for clients
of temporary service provider to be based on client's experience
rating. Establishes criteria for workers' compensation coverage
provided by temporary service provider. Requires temporary
service provider to provide workers' compensation coverage for
employees provided to clients. Creates exception. - }
    { - Instructs insurers to provide separate statistical
experience of each client of temporary service provider insured
by insurer to licensed workers' compensation rating
organization. - }
  Prohibits client of temporary service provider from paying
employee provided by temporary service provider directly if
employee is being paid by temporary service provider.
   { +  Subjects certain client employers to noncomplying
employer status. Requires temporary service provider and employer
client to execute written agreement that includes certain
specified conditions. Requires temporary service provider to
inform employee of prohibition and employee to acknowledge in
writing having been so informed. + }
  Instructs Director of Department of Consumer and Business
Services to report certain information to Department of Revenue
and Employment Department.

                        A BILL FOR AN ACT
Relating to employees provided by temporary service provider;
  creating new provisions; and amending ORS 656.850.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 656. + }
  SECTION 2.  { + (1) Except as provided in subsection (3)(c) of
this section, an employer client of a temporary service provider
may not pay an employee through the temporary service provider
and pay the employee directly for work performed in the same pay
period.
  (2) An employer client of a temporary service provider that
pays an employee through the temporary service provider and pays
the employee directly for work performed in the same pay period

is subject to ORS 656.052 and 656.054 and to civil penalties
assessed pursuant to ORS 656.735.
  (3) A temporary service provider and each employer client of
the temporary service provider shall execute a written agreement
specifying that:
  (a) The temporary service provider is providing an employee to
the employer client;
  (b) The temporary service provider will maintain a copy of the
records of the hours worked by each employee provided by the
temporary service provider for the employer client for one year;
  (c) The employer client may not pay the employee for any work
performed in any pay period in which the employee is assigned to
the employer client through the temporary service provider unless
the employee transitions to employment with the employer client
and receives no further pay from the temporary service provider
for work performed by the employee while employed by the employer
client; and
  (d) The signing of the agreement by the parties acknowledges
that the parties are aware of the provisions of this section.
  (4) A copy of the agreement required under subsection (3) of
this section and of the acknowledgment required under subsection
(5) of this section must be retained by the temporary service
provider and the employer client in accordance with rules adopted
by the Director of the Department of Consumer and Business
Services.
  (5) The temporary service provider shall inform the employee at
the time of hire of the prohibition described in subsection
(3)(c) of this section, and the employee shall acknowledge in
writing that the employee has been informed by the temporary
service provider.
  (6) If the Director of the Department of Consumer and Business
Services issues a final order declaring the employer client of a
temporary service provider to be a noncomplying employer as
provided in this section, the director shall notify the
Department of Revenue and the Employment Department. The
notification shall be given in such manner as the director may
prescribe and must include information relevant to any payments
made by the employer client directly to the employee of the
temporary service provider. + }
  SECTION 3. ORS 656.850 is amended to read:
  656.850. (1) As used in this section and ORS 656.018, 656.403,
656.855 and 737.270 { +  and section 2 of this 2013 Act + }:
  (a) 'Worker leasing company' means a person who provides
workers, by contract and for a fee, to work for a client but does
not include a person who provides workers to a client on a
temporary basis.
  (b) 'Temporary basis' means providing workers to a client for
special situations such as to cover employee absences, employee
leaves, professional skill shortages, seasonal workloads and
special assignments and projects with the expectation that the
position or positions will be terminated upon completion of the
special situation. Workers also are provided on a temporary basis
if they are provided as probationary new hires with a reasonable
expectation of transitioning to permanent employment with the
client and the client uses a preestablished probationary period
in its overall employment selection program.
  (c) 'Temporary service provider' means a person who provides
workers, by contract and for a fee, to a client on a temporary
basis.
  (2) No person shall perform services as a worker leasing
company in this state without first having obtained a license
therefor from the Director of the Department of Consumer and
Business Services. No person required by this section to obtain a
license shall fail to comply with this section or ORS 656.855, or
any rule adopted pursuant thereto.

  (3) When a worker leasing company provides workers to a client,
the worker leasing company shall satisfy the requirements of ORS
656.017 and 656.407 and provide workers' compensation coverage
for those workers and any subject workers employed by the client
unless during the term of the lease arrangement the client has
proof of coverage on file with the director that extends coverage
to subject workers employed by the client and any workers leased
by the client. If the client allows the coverage to expire and
continues to employ subject workers or has leased workers, the
client shall be considered a noncomplying employer unless the
worker leasing company has complied with subsection (5) of this
section.
  (4) When a worker leasing company provides workers for a
client, the worker leasing company shall assure that the client
provides adequate training, supervision and instruction for those
workers to meet the requirements of ORS chapter 654.
  (5) When a worker leasing company provides subject workers to
work for a client and also provides workers' compensation
coverage for those workers, the worker leasing company shall
notify the director in writing. The notification shall be given
in such manner as the director may prescribe. A worker leasing
company may terminate its obligation to provide workers'
compensation coverage for workers provided to a client by giving
to the client and the director written notice of the termination.
A notice of termination shall state the effective date and hour
of the termination, but the termination shall be effective not
less than 30 days after the notice is received by the director.
Notice to the client under this section shall be given by mail,
addressed to the client at the client's last-known address. If
the client is a partnership, notice may be given to any of the
partners. If the client is a corporation, notice may be given to
any agent or officer of the corporation upon whom legal process
may be served.
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