Kentucky Administrative Regulations › Title 803 - LABOR CABINET › Chapter 25 - Department of Workers' Claims › Section 803 KAR 25:230 - Employee leasing

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				342.615
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				342.260 requires the executive director to
				promulgate administrative regulations necessary to implement the provisions of
				KRS Chapter 342.
				KRS
				342.615 requires the executive director to
				promulgate an administrative regulation to establish the manner of registration
				for an employee leasing company with the executive director. This
				administrative regulation establishes the manner in which an employee leasing
				company shall register with the executive director.
Section 1. Registration.
(1) To be eligible to conduct business in
			 Kentucky, a corporation, partnership, sole proprietorship, or other business
			 entity which provides staff, personnel or an employee to be employed in this
			 state to a business pursuant to a lease arrangement or agreement shall register
			 with the executive director in the manner established in this section of the
			 administrative regulation. The registration shall:
(a) Be on form EL-1, Employee Leasing Company
			 Registration Form;
(b) Be filed
			 with the Division of Security and Compliance, Kentucky Office of Workers'
			 Claims; and
(c) Include:
1. The name of the lessor;
2. The address of the principal place of
			 business of the lessor and the address of each office it maintains within this
			 state;
3. The lessor's taxpayer or
			 employer identification number;
4.
			 A list by jurisdiction of each name that the lessor has operated under in the
			 preceding five (5) years including an alternative name, name of a predecessor
			 and, if known, name of successor business entity;
5. A list of each person or entity who owns a
			 five (5) percent or greater interest in the employee leasing business at the
			 time of application and a list of each person or entity who formerly owned a
			 five (5) percent or greater interest in the employee leasing company or a
			 predecessor, successor, or alter ego in the preceding five (5) years;
6.
a. If
			 coverage has been cancelled or nonrenewed, a list of each cancellation or
			 nonrenewal of workers' compensation insurance which has been issued to the
			 lessor or a predecessor in the preceding five (5) years. The list shall include
			 the:
(i) Policy or certificate
			 number;
(ii) Name of insurer or
			 other provider of coverage;
(iii)
			 Rate of cancellation; and
(iv)
			 Reason for cancellation; or
b. If coverage has not been cancelled or
			 nonrenewed, a sworn affidavit signed by the chief executive officer of the
			 lessor attesting to that fact.
7. The name of the carrier of the current
			 workers' compensation insurance, its policy number, policy period, and the name
			 of the insured as it appears on the policy; and
8. A signed certification that states that
			 the:
a. Person signing is the duly authorized
			 agent for the employee leasing company;
b. Information contained in the registration
			 form is true; and
c. Applicant
			 shall:
(i) Notify the executive director of a
			 change in the information provided in the registration; and
(ii) Provide information regarding workers'
			 compensation coverage of a leased employee within ninety (90) days of approval
			 on Form EL-2.