New Hampshire Updates Employee-Leasing Law
The New Hampshire Department of Labor notes changes to the recent employee-leasing law, RSA chapter 277-B, signed on July 31, 2009 and becoming effective on September 29, 2009.
A major change from prior law is the employee leasing company may have two separate and simultaneous workers’ compensation carriers, but only one carrier in the voluntary market and one in the residual market. Each client must be completely within one policy or the other, and both policies must clearly delineate which clients are included.
The new 277-B:9 clarifies the duties of each entity (the leasing company or the client) as to who is the “employer” under what circumstances. For example . . .
The leasing company is responsible for wages and taxes and employee manuals.
The client is responsible for the goods and services it produces; wage-and-hour, safety, and discrimination compliance; and professional licenses.
Fines and civil penalties for violations of labor laws may be split between the leasing company and the client, depending upon the actual responsibility of each.
Starting August 17, 2009, NHDOL will impose on an employee leasing company a civil penalty of $50 per day, for each day beyond 10 days, that NHDOL does not receive a proper notification of client company engagement or termination.
RSA 277-B:9 III requires an employee leasing company to notify the Commissioner of Labor in writing within 10 days of engagement or termination of a client company. This allows the NHDOL to track workers’ compensation insurance coverage compliance, among other oversight duties. (workersxzcompxzkit)
Violation of this notification law may result in a civil penalty of “up to $1,000 per employee per day for each day the violation continues” per 277-B:12 II.
See http://www.labor.state.nh.us/news_about_NHDOL.asp for more information.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.
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