102.315 Worker’s compensation insurance; employee leasing companies.
1,684 words·~8 min read·
/wi/chapter-102/102-315-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
102.315 Worker’s compensation insurance; employee leasing companies.
(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.
3. The effective date of the employee leasing agreement.
4. The signatures of the authorized representatives of the client and the employee leasing company.
(c)A client that elects to provide insurance coverage under par.
(a)is liable under s. 102.03 for all compensation payable 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 .
(d)If a client makes an election under par.
(a), the employee leasing company shall include the client’s federal employer identification number on any reports to the department for the purposes of administering the worker’s compensation program or the unemployment insurance program under ch. 108 .
(e)The experience rating under the standards and criteria under ss. 626.11 and 626.12 remain with a client that makes an election under par.
(a).
(2s)Claim reporting. Any claim filed under this chapter for a leased employee shall include the client’s federal employer identification number.
(3)Multiple coordinated policy required. Except as provided in subs.
(4)and
(a), an employee leasing company shall insure its liability under sub.
(2)by obtaining a separate worker’s compensation insurance policy for each client of the employee leasing company under a multiple coordinated policy. The policy shall name both the employee leasing company and the client as named insureds, shall indicate which named insured is the employee leasing company and which is the client, shall designate either the employee leasing company or the client, but not both, as the first named insured, and shall provide the mailing address of each named insured. Except as permitted under sub.
(6), an insurer may issue a policy for a client under this subsection only if all of the employees of the client are leased employees and are covered under the policy.
(4)Master policy; approval required. An employee leasing company may insure its liability under sub.
(2)by obtaining a master policy that has been approved by the commissioner of insurance as provided in this subsection. The commissioner of insurance may approve the issuance of a master policy if the insurer proposing to issue the master policy submits a filing to the bureau showing that the insurer has the technological capacity and operation capability to provide to the bureau information, including unit statistical data, information concerning proof of coverage and cancellation, termination, and nonrenewal of coverage, and any other information that the bureau may require, at the client level and in a format required by the bureau and the bureau submits the filing to the commissioner of insurance for approval under s. 626.13 . A master policy filing under this subsection shall also establish basic manual rules governing the issuance of an insurance policy covering the leased employees of a divided workforce that are consistent with sub.
(6)and the cancellation, termination, and nonrenewal of policies that are consistent with sub.
(10). On approval by the commissioner of insurance of a master policy filing, an insurer may issue a master policy to an employee leasing company insuring the liability of the employee leasing company under sub.
(2).
(5)Master policy; small clients.
(a)Regardless of whether a master policy has been approved under sub.
(4), an employee leasing company may insure its liability under sub.
(2)with respect to a group of small clients of the employee leasing company by obtaining a master policy in the voluntary market insuring that liability. The fact that an employee leasing company has a client that is covered under a mandatory risk-sharing plan under s. 619.01 does not preclude the employee leasing company from obtaining a master policy under this paragraph so long as that client is not covered under the master policy. An insurer may issue a master policy under this paragraph insuring in the voluntary market the liability under sub.
(2)of an employee leasing company with respect to a group of small clients of the employee leasing company regardless of whether any of those small clients has a divided workforce.
(b)Within 30 days after the effective date of an employee leasing agreement with a small client that is covered under a master policy under par.
(a), the employee leasing company shall report to the department all of the following information:
1. The name and address of the small client and of each entity or organization that is under common control or ownership with the small client.
2. The number of employees initially covered under the master policy.