This bill amends existing law regarding the responsibilities of client companies in employee leasing agreements, specifically focusing on the reporting of separations from employment. It establishes that a client company is solely responsible for the quality, adequacy, and safety of goods or services produced, as well as for directing and supervising covered employees. Additionally, it clarifies that a client company is not liable for the actions of an employee leasing company or its employees when those employees are acting under the direction of the leasing company, and vice versa.

A significant insertion in the bill states that, despite any conflicting provisions in existing law, the client company is solely responsible for complying with reporting requirements related to separations from employment and is liable for any penalties incurred for failing to provide necessary information. This change emphasizes the accountability of client companies in managing employment-related reporting, thereby shifting the burden away from employee leasing companies. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 34:8-68.1