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USA Statutes : maine
Title : Title 32. PROFESSIONS AND OCCUPATIONS
Chapter : Chapter 125. EMPLOYEE LEASING COMPANIES (HEADING. PL 1991, c. 468, @4 (new))
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Title 32 - §14051. Definitions
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14051. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
[1991, c. 468, §4 (new).]
1. Client company. "Client company" means a person, association, partnership, corporation or other entity that leases employees from an employee
leasing company pursuant to contract.
[1991, c. 468, §4 (new).]
1-A. Commissioner. "Commissioner" means the Commissioner of Labor.
[1995, c. 618, §18 (new).]
2. Controlling person. "Controlling person" means:
A. A person or entity that owns a 5% or greater interest in an employee leasing company or possesses, directly or indirectly,
the power to direct or cause the direction of the management or policies of an employee leasing company through ownership
of voting securities, by contract or otherwise, and is actively involved in the day-to-day management of the company; or
[1991, c. 468, §4 (new).]
B. A natural person employed, appointed or authorized by an employee leasing company to enter into a contractual relationship
with a client company on behalf of the employee leasing company.
[1991, c. 468, §4 (new).]
[1991, c. 468, §4 (new).]
3. Employee leasing company. "Employee leasing company" means a sole proprietorship, partnership, corporation or other form of business entity, a substantial
portion of the business of which consists of leasing employees to one or more client companies under contractual arrangements
that are characterized by the following.
A. Employment responsibilities are carried out by the employee leasing company or are shared by the employee leasing company
and the client company.
[1991, c. 468, §4 (new).]
B. Direction and control of employees provided by the employee leasing company are handled by the employee leasing company
or are shared by the employee leasing company and the client company. "Direction and control" includes the right of the employee
leasing company to hire and fire employees.
[1991, c. 468, §4 (new).]
C. The leasing arrangement is long term and does not include arrangements to provide temporary help services. "Temporary help
services" means a service whereby an organization hires its own employees and assigns them to a 3rd party to support or supplement
the 3rd party's work force in work situations such as employee absences, temporary skill shortages, seasonal work load conditions
and special assignments and projects.
[1991, c. 468, §4 (new).]
D. The leasing arrangement does not include providing labor dispute workers. "Labor dispute worker" means a worker who is
furnished to an entity to replace workers involved in strikes, lockouts or other labor activities.
[1991, c. 468, §4 (new).]
[1991, c. 468, §4 (new).]
4. Registrant. "Registrant" means an employee leasing company that registers under this chapter.
[1991, c. 468, §4 (new).]
5. Superintendent. "Superintendent" means the Superintendent of Insurance.
[1991, c. 468, §4 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14052. Registration required
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14052. Registration required
An employee leasing company may not engage in business from offices in this State or enter into any contractual relationship
with a client company for the purpose of providing employees for business conducted by the client company in this State unless
the employee leasing company is registered under this chapter. An employee leasing company or person may not use the name
or title "staff leasing company," "employee leasing company," "registered staff leasing company," or "staff leasing services
company" or otherwise represent that it is registered under this chapter unless the entity or person is registered under this
chapter.
[1995, c. 618, §19 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14053. Registration process
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14053. Registration process
1. Statement. Except as otherwise provided in this section, each employee leasing company required to be registered under section 14052
shall provide the superintendent with information required by the superintendent on forms that the superintendent specifies.
At a minimum, employee leasing companies shall provide the following information:
A. The name or names under which the registrant conducts business;
[1991, c. 468, §4 (new).]
B. The address of the principal place of business of the employee leasing company and the address of each office it maintains
in this State;
[1991, c. 468, §4 (new).]
C. The employee leasing company's taxpayer or employer identification number;
[1991, c. 468, §4 (new).]
D. A list by jurisdiction of each name under which the employee leasing company has operated in the preceding 5 years, including
any alternative names, names of predecessors and, if known, successor business entities;
[1991, c. 468, §4 (new).]
E. A list of all persons or entities that own a 5% or greater interest in the employee leasing company at the time of application
and a list of persons who formerly owned a 5% or greater interest in the employee leasing company or its predecessors in the
preceding 5 years; and
[1995, c. 618, §20 (amd).]
F. A list of the cancellations or nonrenewals of workers' compensation insurance issued to the employee leasing company or
its predecessors in the preceding 5 years. The list must include the policy or certificate numbers, names of insurers or
other providers of coverage, dates of cancellation and reasons for cancellation. If coverage has not been canceled or has
been renewed, the registration must include a sworn affidavit signed by the chief executive officer of the employee leasing
company attesting to that fact.
[1991, c. 468, §4 (new).]
[1997, c. 29, §1 (amd).]
2. Renewal. Prior to January 31st of each year or any other time fixed by the superintendent, each registrant shall renew its registration
by notifying the superintendent of any changes in the information previously provided pursuant to this section.
[1997, c. 29, §1 (amd).]
3. List. The superintendent shall maintain a list of employee leasing companies registered under this chapter.
[1997, c. 29, §1 (amd).]
4. Forms. The superintendent may prescribe forms necessary to promote the efficient administration of this section.
[1997, c. 29, §1 (amd).]
5. Existing companies.
[1995, c. 618, §20 (rp).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14054. Fees
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14054. Fees
1. Amount. The following are the registration fees under this chapter.
A. Upon filing a registration statement under section 14053, subsection 1, each employee leasing company shall pay an initial
registration fee of $500.
[1991, c. 468, §4 (new).]
B. Upon renewing its registration statement under section 14053, subsection 2, each employee leasing company shall pay an annual
renewal fee of $100.
[1991, c. 468, §4 (new).]
[1991, c. 468, §4 (new).]
2. Treatment of fees. All fees must be paid to the Treasurer of State and credited to the Insurance Regulatory Fund pursuant to Title 24-A, section
604.
[1991, c. 468, §4 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14055. Insurance; unemployment insurance; benefit plans
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14055. Insurance; unemployment insurance; benefit plans
1. Benefits. The following provisions govern the provision of benefits by employee leasing companies to their employees.
A. A registered employee leasing company qualifies as an "other group" within the meaning of Title 24-A, sections 2612-A and
2808 for purposes of procurement of group life and health insurance with respect to employees leased to a client company.
A registered employee leasing company qualifies as an eligible group within the meaning of Title 24-A, section 2884 for purchase
of group legal services insurance. Any employee welfare plan or benefit, other than workers' compensation insurance, provided
to employees leased to a client company on less than a fully insured basis may be provided only subject to and in accordance
with Title 24-A, chapter 81.
[1995, c. 618, §21 (rpr).]
B. The superintendent shall adopt rules governing the provision of workers' compensation insurance as required by Title 39-A,
chapter 9 for workers provided by an employee leasing company to any client company. These rules must be consistent with
subsection 2 and reflect consideration of the needs and operational efficiencies of employee leasing companies and the costs
to the workers' compensation system. If either the employee leasing company or the client company has secured the payment
of compensation in conformity with former Title 39, chapter 1 or Title 39-A, chapter 9, the immunity from liability described
in that chapter extends to and is binding on the client company, the employee leasing company, all employees leased to any
client company and any other employees of the employee leasing company or the client company. An employee leasing company
is not responsible for securing the payment of compensation in conformity with Title 39-A nor deprived of the defenses listed
in Title 39-A, section 103 with respect to those persons for whom the provision of benefits is not required under Title 39-A
in the absence of an employee leasing arrangement.
[1991, c. 885, Pt. E, §42 (amd); §47 (aff).]
[1995, c. 618, §21 (amd).]
2. Workers' compensation. Workers' compensation insurance for employees leased to client companies is subject to the following.
A. Under rules adopted pursuant to subsection 1, paragraph B, the superintendent may provide a determination of the circumstances
and conditions, if any, under which an employee leasing company may be the policyholder of a workers' compensation insurance
policy providing coverage to employees leased to client companies. Additionally or alternatively, the superintendent may
require by rule that:
(1) The employee leasing company purchase separate policies through the Maine Employers' Mutual Insurance Company, established
pursuant to Title 24-A, section 3703, for client companies subject to Title 39-A; and
(2) The policies be assigned to one servicing carrier and, to the extent practical, administered on a unified basis. The
superintendent also may provide by rule that the employee leasing company or the President of the Maine Employers' Mutual
Insurance Company request from the superintendent a waiver of a rule adopted pursuant to this subparagraph if it is impractical
for one servicing carrier to service all the client companies of an employee leasing company.
[1991, c. 885, Pt. E, §43 (amd); §47 (aff).]
B. When workers' compensation coverage is provided by means of insurance maintained by the employee leasing company through
the residual market mechanism, the rules may further provide for the application of experience modification factors, premium
surcharges and deductibles consistent with Title 24-A, section 2386. To the extent that a workers' compensation insurance
policy is issued to an employee leasing company, experience modification factors applicable to a company that becomes a client
company of the employee leasing company after the effective date of this section are calculated by using the client company's
experience modification factor:
(1) Throughout the term of the employee leasing arrangement; or
(2) For no more than the first 3 years of the employee leasing arrangement if the requirements of the rules adopted by the
superintendent are met.
[RR 1999, c. 1, §47 (cor).]
C. Each employee leasing company that carries workers' compensation insurance for its leased employees shall maintain and make
available to its workers' compensation carrier information required by rules adopted by the superintendent pursuant to this
chapter. An employee leasing company shall promptly notify its workers' compensation insurance carrier and the residual market
manager of the termination of the employee leasing company's relationship with any client company for which it provides workers'
compensation insurance.
[1991, c. 468, §4 (new).]
[RR 1999, c. 1, §47 (cor).]
3. Unemployment insurance. An employee leasing company's responsibility for unemployment insurance is governed by Title 26, section 1221-A and as follows.
A. During the term of the leasing arrangement, the employee leasing company is responsible for payment of unemployment contributions,
penalties and interest due pursuant to Title 26, chapter 13 on wages paid to employees leased to client companies, except
for compensation paid to sole proprietors of or partners in the client company.
[1991, c. 468, §4 (new); §6 (aff).]
B. The employee leasing company shall report all unemployment contributions due under its state employer identification number,
using its contribution rate. The employee leasing company shall keep separate records and submit separate quarterly wage
reports to the Bureau of Unemployment Compensation for each of its client companies.
[1995, c. 560, Pt. G, §18 (amd).]
[1995, c. 560, Pt. G, §18 (amd).]
4. Other insurance. Employees leased to a client company by an employee leasing company remain the employees of the client company for purposes
of general liability insurance, automobile insurance, fidelity bonds, surety bonds and employer's liability insurance carried
by the client company. Employees leased to a client company by an employee leasing company are not deemed employees of the
employee leasing company for purposes of general liability insurance, automobile insurance, fidelity bonds, surety bonds or
employer's liability insurance carried by the employee leasing company unless the employees are included by specific reference
in the applicable insurance contract or bond.
[1991, c. 468, §4 (new).]
5. Disclosure. The employee leasing company shall disclose to client companies services to be rendered, including costs, and the respective
rights and obligations of the parties prior to entering into or receiving a leasing arrangement. This disclosure must include
a statement that the client company may take complaints to the Bureau of Insurance.
[1997, c. 29, §2 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14056. Exemption
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14056. Exemption
Nothing in this chapter exempts a client company of an employee leasing company nor an employee leased to the client company
by the employee leasing company from any other state, local or federal license or registration requirements. Any individual
who must be licensed, registered or certified according to law and who is a leased employee is deemed an employee of the client
company for purposes of the license, registration or certification. An employee leasing company is not liable for the general
debts or obligations of a client company with which it has entered into an employee leasing arrangement, except for the payment
of unemployment contributions as required in section 14055.
[1991, c. 468, §4 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14057. Advertising prohibition
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14057. Advertising prohibition
An organization registered under this chapter may not directly or indirectly refer to that registration in any advertisements,
marketing materials or publications.
[1991, c. 468, §4 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 32 - §14058. Penalties
Title 32: PROFESSIONS AND OCCUPATIONS Chapter 125: EMPLOYEE LEASING COMPANIES (HEADING: PL 1991, c. 468, @4 (new)) §14058. Penalties
1. Injunction. The State may seek to enjoin any person or employee leasing company from violating this chapter.
[1991, c. 468, §4 (new).]
2. Penalty. The following penalties apply to violations of this chapter.
A. A person or employee leasing company that violates this chapter is subject to a fine of $100 per day for each violation.
[2003, c. 452, Pt. R, §10 (new); Pt. X, §2 (aff).]
B. A corporation, partnership, sole proprietorship or other form of business entity and an officer, director, general partner,
agent, representative or employee of any of those types of business entities that knowingly uses or participates in any employee
leasing agreement, arrangement or mechanism for the purpose of depriving one or more insurers of premiums or avoiding the
calculation of the proper contribution rate for purposes of unemployment contributions commits a Class E crime.
[2003, c. 452, Pt. R, §10 (new); Pt. X, §2 (aff).]
[2003, c. 452, Pt. R, §10 (rpr); Pt. X, §2 (aff).]
3. Rebuttable presumption. When an employee leasing company leases employees to only one client company and its affiliates, there is a rebuttable presumption
that the client company entered into an employee leasing arrangement to avoid the calculation of the proper contribution rate
for payment of unemployment contributions.
[1991, c. 468, §4 (new).]
4. Costs. Any costs incurred by the superintendent in investigating violations of or enforcing this chapter must be paid by the person
or entity found to have violated this chapter.
[1991, c. 468, §4 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney. Office of the Revisor of Statutes 7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
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