Florida Administrative Code › 61 - DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION › 61G7 - Board of Employee Leasing Companies › Chapter 61G7-6 - DEFINITIONS › Section 61G7-6.001 - Definitions

Current through Reg. 50, No. 138; July 16, 2024
To enable the Board and the Department to administer Part XI
				  of Chapter 468, F.S., the Board hereby interprets the following terms as used
				  in the definition of employee leasing as follows:
(1) "Health benefits or health plan," as used
				in Section 468.529, F.S., means provision
				of comprehensive major medical health benefits.
(2) "Intangible assets" as used herein to
				enable initial applicants to properly report their financial assets to meet the
				requirements for licensure, means assets that lack physical substance. The
				value of intangible assets is generally based on the value of the rights
				inherent in them or results from allocation of costs incurred to future
				periods, in which case they have no realizable or recoverable value outside of
				their ability to benefit future earnings in the normal course of operations.
				Intangible assets are normally subject to amortization. Examples of intangible
				assets include goodwill, copyrights, trademarks, patents, organization costs,
				deferred costs, client enrollment costs, and excess of assets acquired over
				purchase price.
(3) "Primarily
				responsible" as used in Section
				468.529(1),
				F.S., means that the admitted carrier is liable for all claims incurred under
				the plan of insurance during its effective period, regardless of any
				reimbursement or indemnification agreement between the licensed employee
				leasing company and the carrier. Any reimbursement or indemnification agreement
				between the employee leasing company and the admitted insurance carrier shall
				not limit or diminish the carrier's primary responsibility for its obligations
				under the health plan for the payment of claims incurred or the provision of
				benefits under the health plan.
(4)
				"Shared responsibility" as used in Section
				468.525(4)(a),
				F.S., means that the client company exercises such right of direction and
				control over the leased employee as is necessary to conduct its business and
				without which the client would be unable to conduct its business, discharge any
				fiduciary responsibility which it may have, or comply with any applicable
				licensure, regulatory, or other responsibilities the client company may
				have.
(5) "Tangible accounting net
				worth" means net worth presented in accordance with generally accepted
				accounting principles reduced by the aggregate amount of intangible
				assets.
(6) "Temporary" as used in
				Section 468.520(4),
				F.S., means a situation in which leased employees are not needed on a
				long-term, ongoing basis, but rather are only needed to support or supplement
				the client company's work force in special work situations, such as employee
				absences, temporary skill shortages, seasonal workloads, and special
				assignments and projects, for a period not to exceed one year.
(7) No reservation, assumption, or retention
				by an employee leasing company of any responsibility, obligation, authority, or
				right as set forth in Sections
				468.525(4)(a)-(f),
				F.S., is meant to, or shall be interpreted to, in any way imply or establish a
				joint employer relationship with any client or to in any way impact a client's
				sole responsibility to conduct its business, discharge any fiduciary
				responsibility that it may have, or comply with any applicable licensure,
				regulatory, or statutory requirement of the client. The client shall be
				entitled to exercise all rights, and shall be obligated to perform all duties
				and responsibilities, otherwise applicable to it as an employer in an
				employment relationship. Without limiting the foregoing, the following
				definitions shall apply:
(a) "Assumes
				responsibility for the payment of wages" as used in Section
				468.525(4)(b),
				F.S., means the obligation of the employee leasing company to comply with the
				terms of employment established by the employee leasing company with an
				employee relating to the payment of wages of the employee. The term does not
				include any obligation on the part of the employee leasing company to assume
				any contractual obligation which may exist between a client of an employee
				leasing company and any leased employee, or any other compensation or benefit,
				in any form, unless the employee leasing company specifically adopts such
				obligations by way of a written agreement entered into with the leased
				employee.
(b) "Full Responsibility"
				as used herein to determine whether an employee leasing company's contractual
				arrangements comply with the conditions as set forth in Section
				468.525(4)(c),
				F.S., means complete and total responsibility for the collection of and payment
				of all payroll taxes on payroll reported to and paid by the employee leasing
				company, which are payable to the Internal Revenue Service and/or to the State
				of Florida for services performed by leased employees as leased
				employees.
(c) "Reserves a right of
				direction and control over leased employees assigned to the client's location"
				as used in Section 468.525(4)(a),
				F.S., does not imply or require the actual exercise of such direction and
				control by the employee leasing company. Additionally, the term does not give
				the employee leasing company the obligation to direct, control, or supervise
				the work performed by leased employees or give the employee leasing company the
				right to modify employment conditions of leased employees or to act or
				interfere with a client's action. Such reserved right of direction and control
				shall be imputed for the limited purpose of the employee leasing company's
				employer status pursuant to Section
				468.529, F.S. with regard to its
				insurance, employment tax, and benefit plans. The client shall exercise such
				direction and control as may be allocated to the client, in writing, and in
				conformity with Florida law.
(d)
				"Retains authority to hire, terminate, discipline, and reassign the leased
				employees" as used in Section
				468.525(4)(d),
				F.S., means the employee leasing company has the right to add and remove leased
				employees from its payroll, but it does not imply or require the actual
				exercise of such authority by the employee leasing company at the job site at
				which or from which the leased employees work. The client shall exercise such
				authority as may be allocated to it in writing and in conformity with
				applicable law.
(e) "Retains a
				right of direction and control over management of safety, risk, and hazard
				control at the worksite or sites affecting its leased employees, including:
1. Responsibility for performing safety
				inspections of client equipment and premises;
2. Responsibility for the promulgation and
				administration of employment and safety policies; and
3. Responsibility for the management of
				workers' compensation claims, claims filings, and related procedures;" as used
				in Section 468.525(4)(e),
				F.S., means the employee leasing company has the right and responsibility to
				monitor compliance with such workers' compensation insurance as is maintained
				by the employee leasing company for leased employees for purposes of the
				employee leasing company's internal risk management and to manage workers'
				compensation claims, claims filings, and related procedures with respect to
				such workers' compensation insurance. It does not mean that the employee
				leasing company is responsible, independently or jointly, for the client's
				obligations with respect to workplace safety, nor does it imply or require the
				actual exercise of such direction and control by the employee leasing company.
				The client shall exercise such direction and control as may be allocated to the
				client, in writing, and in conformity with applicable
				law.