102.315 Worker’s compensation insurance; employee leasing companies.

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(1)Definitions. In this section:

(a)“Bureau” means the Wisconsin compensation rating bureau under s. 626.06 .

(b)“Client” means a person that obtains all or part of its nontemporary, ongoing employee workforce through an employee leasing agreement with an employee leasing company.

(c)“Divided workforce” means a workforce in which some of the employees of a client are leased employees and some of the employees of the client are not leased employees, but does not include a workforce with respect to a client that has elected to provide insurance coverage for leased employees under sub.

(2m).

(d)“Divided workforce plan” means a plan under which 2 worker’s compensation insurance policies are issued to cover the employees of a client that has a divided workforce, one policy covering the leased employees of the client and one policy covering the employees of the client who are not leased employees.

(e)“Employee leasing agreement” means a written contract between an employee leasing company and a client under which the employee leasing company provides all or part of the nontemporary, ongoing employee workforce of the client.

(f)“Employee leasing company” means a person that contracts to provide the nontemporary, ongoing employee workforce of a client under a written agreement, regardless of whether the person uses the term “professional employer organization,” “PEO,” “staff leasing company,” “registered staff leasing company,” or “employee leasing company,” or uses any other, similar name, as part of the person’s business name or to describe the person’s business. “Employee leasing company” does not include a cooperative educational service agency. This definition applies only for the purposes of this chapter and does not apply to the use of the term in any other chapter.

(g)“Leased employee” means a nontemporary, ongoing employee whose services are obtained by a client under an employee leasing agreement.

(h)“Master policy” means a single worker’s compensation insurance policy issued by an insurer authorized to do business in this state to an employee leasing company in the name of the employee leasing company that covers more than one client of the employee leasing company.

(i)“Multiple coordinated policy” means a contract of insurance for worker’s compensation under which an insurer authorized to do business in this state issues separate worker’s compensation insurance policies to an employee leasing company for each client of the employee leasing company that is insured under the contract.

(j)“Small client” means a client that has an unmodified annual premium assignable to its business, including the business of all entities or organizations that are under common control or ownership with the client, that is equal to or less than the threshold below which employers are not experience rated under the standards and criteria under ss. 626.11 and 626.12 , without regard to whether the client has a divided workforce.

(2)Employee leasing company liable. Except as otherwise provided in an employee leasing agreement that meets the requirements of sub.

(2m), an employee leasing company is liable under s. 102.03 for all compensation payable under this chapter to a leased employee, including any payments required under s. 102.16

(3), 102.18

(b)3. or

(bp), 102.22

(1), 102.35

(3), 102.57 , or 102.60 . If a client that makes an election under sub.

(a)terminates the election, fails to provide the required coverage, or allows coverage to lapse, the employee leasing company is liable under s. 102.03 as set forth in this subsection. Except as allowed under s. 102.29 , an employee leasing company may not seek or receive reimbursement from another employer for any payments made as a result of that liability. An employee leasing company is not liable under s. 102.03 for any compensation payable under this chapter to an employee of a client who is not a leased employee.

(2e)Termination of employee leasing agreement. If an employee leasing company terminates an employee leasing agreement with a client that has made an election under sub.

(a), the company shall provide notice of the termination of an employee leasing agreement to the department and the client, on a form prescribed by the department, at least 30 days before the termination of the employee leasing agreement. The notice provided under this subsection must contain all of the following information:

(a)The name, mailing address, and federal employer identification number of the employee leasing company.

(b)The name, mailing address, and federal employer identification number of the client.

(c)The effective date of the termination of the employee leasing agreement.

(d)The signatures of the authorized representatives of the client and the employee leasing company.

(2m)Client election to provide insurance coverage.

(a)A client may elect to provide insurance coverage under this chapter for leased employees. Such an election must be provided in an employee leasing agreement, and the leased employees must be insured in the voluntary market and not under a mandatory risk-sharing plan under s. 619.01 .

(b)The client shall provide notice of an election or termination of an election under par.

(a)to the department and the employee leasing company on a form prescribed by the department at least 30 days before the effective date of the election or termination of the election. The notice provided under this subsection must contain all of the following information:

1. The name, mailing address, and federal employer identification number of the client.

2. The name, mailing address, and federal employer identification number of the employee leasing company.