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Leased workers

What are leased workers?

Workers provided to an employer by a worker leasing company through a contractual agreement and for a fee are considered leased workers.

Who covers leased workers

Workers' comp insurance coverage for leased workers must be provided either by the worker leasing company or the client.

  • If the worker leasing company provides coverage for the client's workers, then the coverage includes all the client's workers, whether they are leased or employed directly by the client. 
  • If the client retains its own workers' comp policy, the policy must cover all the client's workers, whether leased or employed directly by the client.

This means that leasing clients who maintain workers' comp coverage will be directly liable for premium based on the payroll of their leased workers.

If both have coverage

In the event both a worker leasing company and client company have workers' comp coverage, the client company must either cancel its policy or retain coverage and report payroll to its insurer for both leased and directly-employed workers.

The worker leasing company and its client should determine who will provide workers' comp insurance at the time they enter into a leasing agreement.

Before you start

Before you contract with a worker leasing company, make sure that the company is licensed by the Oregon Workers' Compensation Division by checking their "Active Worker Leasing Company" list.

From saif.com

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