Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 500 - Property and Casualty › Chapter 6 - Workers' Compensation and Employers' Liability › Section 20 CSR 500-6.800 - Employee Leasing Arrangements

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule ensures that an employer who
				  leases some or all of its employees properly obtains Workers' Compensation
				  insurance coverage for all of these employees, including those leased from
				  another entity, and that premium is paid commensurate with exposure and
				  anticipated claim experience. The rule is promulgated pursuant to section
				  374.045,
				  RSMo in order to implement section
				  287.282,
				  RSMo.
(1) Definitions.
(A) Employee leasing arrangement means any
				arrangement, under contract or otherwise, where one (1) business or other
				entity leases any of its workers from another business. Employee leasing
				arrangements include, but are not limited to, full service employee leasing
				arrangements, long-term temporary arrangements and any other arrangement which
				involves the allocation of employment responsibilities among two (2) or more
				entities. For purposes of this rule, the phrase employee leasing arrangements
				does not include arrangements to provide temporary help service.
(B) Temporary help service means any service
				where an organization hires its own employees and assigns them to clients for a
				finite time period to support or supplement the client's work force in special
				work situations such as employee absences, temporary skill shortages and
				seasonal workloads.
(C) Client (or
				lessee) means any entity which obtains all or part of its work force from
				another entity through an employee leasing arrangement or which employs the
				services of an entity through an employee leasing arrangement.
(D) Employee leasing company (or lessor)
				means any entity that grants a written lease to a client through an employee
				leasing arrangement.
(E) Leased
				worker (or leased employee) means any person performing services for a client
				under an employee leasing arrangement.
(F) Multiple coordinated policies basis
				means-
1. A system of policies where a
				client's leased and nonleased employees are treated as follows:
A. Each client shall have its own standard
				Workers' Compensation insurance policy covering its leased workers who are
				required to be covered pursuant to the Workers' Compensation laws of the state;
				and
B. Nonleased workers of a
				client shall not be included on the policy required by sub-paragraph
				(1)(F)1.A.;
2. All
				policies for clients of the same employee leasing company shall be assigned to
				one (1) insurer in the state;
3.
				The insurer shall arrange to have the same renewal dates for all the
				policies;
4. The insurer shall
				arrange to have all notices sent to the employee leasing company and to have a
				single master invoice sent to the employee leasing company for all policies
				covering the clients of the employee leasing company;
5. If a client leases employees from more
				than one (1) employee leasing company, there shall be a separate policy for the
				leased employees for each employee leasing company.
6. The insurer also shall issue a policy
				covering the internal employees of the employee leasing company; and
7. Appropriate endorsements shall be used to
				restrict the coverage to specific employees and to coordinate coverage between
				clients and employee leasing company.
(G) Premium subject to dispute shall mean
				those premiums for which the insured has provided a written notice of dispute
				to the insurer or service carrier, has initiated any applicable proceeding for
				resolving such disputes as prescribed by law or rating organization rule, or
				has initiated litigation regarding the premium dispute. The insured must have
				detailed the specific areas of dispute and provided an estimate of the premium
				the insured believes to be correct. The insured must have paid any undisputed
				portion of the bill.