New Jersey Administrative Code › Title 12 - LABOR AND WORKFORCE DEVELOPMENT › Chapter 16 - CONTRIBUTIONS, RECORDS, AND REPORTS › Subchapter 24 - EMPLOYEE LEASING COMPANIES › Section 12:16-24.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
"Assurance organization" means an independent and qualified entity approved by the Commissioner pursuant to 12:16-24.8 to certify the qualifications of an employee leasing company or employee leasing company group for registration under P.L. 2001, c. 260 (34:8-67 et seq.)
"Benefit experience" means the relationship between an employer's contributions paid on his or her own behalf with respect to employment occurring during a specified period and benefits paid with respect to unemployment and temporary disability and charged against the account of the employer in whose employment such individual established base weeks constituting the basis of such benefits. Benefit experience for temporary disability purposes shall also take into account contributions paid by the employer's workers.
"Client company" means a sole proprietorship, partnership, corporation or other business entity, which enters into an employee leasing agreement and is assigned employees performing services in New Jersey by the employee leasing company.
"Commissioner" means the Commissioner of Labor and Workforce Development.
"Covered employee" means an individual co-employed by an employee leasing company and a client company pursuant to an employee leasing agreement.
"Department" means the Department of Labor and Workforce Development.
"Division of Revenue" means that unit of New Jersey State Government within the Department of Treasury which is responsible for the registration of employers for the payment of gross income taxes, unemployment and temporary disability contributions, and other State taxes.
"Employee leasing agreement" or "professional employer agreement" means an arrangement, under written contract, whereby:
1. An employee leasing company and a client company co-employ covered employees; and
2. The arrangement is intended to be, or is, ongoing rather than temporary in nature, and not aimed at temporarily supplementing the client company's work force.
"Employee leasing company" or "professional employer organization" means a sole proprietorship, partnership, corporation or other business entity, which devotes a substantial portion of its business to providing the services of employees pursuant to one or more employee leasing agreements and provides services of a nature customarily understood to be employer responsibilities including, but not limited to, those responsibilities provided in 34:8-68.
"Employee leasing company group" means two or more employee leasing companies that are majority owned by the same ultimate parent company, entity or person.
"Financial statement" means a financial statement prepared in accordance with generally accepted accounting principles and audited by an independent certified public accountant.
"Out-of-State employee leasing company" means an employee leasing company that:
1. Is not domiciled in New Jersey;
2. Is licensed or registered as an employee leasing company in a state other than New Jersey;
3. Does not maintain an office in New Jersey or directly solicit client companies located or domiciled in New Jersey; and
4. Is not responsible for more than 50 covered employees employed in New Jersey on the date of registration or renewal.