Sponsored by:
Senator JOSEPH A. LAGANA
District 38 (Bergen)
SYNOPSIS
Concerns requirements to report separations from employment under employee leasing agreements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning requirements to report separations from employment under employee leasing agreements and amending P.L.2011, c.118.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.2011, c.118 (C.34:8-68.1) is amended to read as follows:
6. a. Except to the extent otherwise expressly provided by an applicable employee leasing agreement, a client company shall be solely responsible for the quality, adequacy or safety of the goods or services produced or sold in the client company's business, for directing, supervising, training and controlling the work of the covered employees with respect to the business activities of the client company, for the acts, errors or omissions of covered employees with regard to those activities, and for accurately reporting wages to the employee leasing company.
b. Except to the extent otherwise expressly provided by an applicable employee leasing agreement, a client company shall not be liable for the acts, errors or omissions of an employee leasing company, or of any covered employee when the covered employee is acting under the express direction and control of the employee leasing company, and an employee leasing company shall not be liable for the acts, errors, or omissions of a client company or of any covered employee when the covered employee is acting under the express direction and control of the client company.
c. Except to the extent otherwise expressly provided by an applicable employee leasing agreement or other employment contract, insurance contract or bond, a covered employee shall not be considered, solely as the result of being a covered employee, an employee of the employee leasing company for purposes of general liability insurance, fidelity bonds, surety bonds, employer's liability which is not covered by workers' compensation, or other liability insurance carried by the employee leasing company.
d. Notwithstanding any provisions of R.S.43:21-6 and R.S.43:21-16 to the contrary, a client company shall be solely responsible for complying with the reporting requirements concerning a separation from employment imposed on employers pursuant to subsection (a) of R.S. 43:21-6, and shall be solely liable for any penalty for failure to provide information concerning a separation from employment imposed pursuant to subsection (b) of R.S. 43:21-16.
(cf: P.L.2017, c.233, s.2)
2. This act shall take effect immediately.
STATEMENT
This bill provides that, notwithstanding any provisions of law to the contrary, a client company of an employee leasing company, not the employee leasing company, is solely responsible for complying with the reporting requirements concerning a separation from employment, and is solely liable for any penalty for failure to provide information concerning a separation from employment.