Enrolled Bill Summary

            House Bill 1184 amends provisions of the Labor Code relating to regulation of staff leasing services by adding a professional employer organization service to the definition of "staff leasing services." The act establishes that in certain contracts between a client company and the state or a political subdivision, a client company contracting with a staff leasing service retains its status or certification as a small, minority-owned, disadvantaged, woman-owned, or historically underutilized business. The state or political subdivision is required to accept a certificate of insurance from a staff leasing service license holder as proof of workers' compensation coverage. A client company with employees who are not under the staff leasing service agreement may be required to prove it has workers' compensation coverage for those employees. House Bill 1184 stipulates that a client company is not relieved of its rights and obligations under certain state and federal labor laws.

            The act requires that after a license application is denied, the Department of Licensing and Regulation must provide an applicant 30 days to correct the cause of the denial and may grant an extra 30 days if it is determined that a good faith effort is being made to correct any deficiencies. The department is further required to establish a written enforcement plan, provide notice to license holders as to the application of the plan, and when assessing an administrative penalty, to consider certain intentions and past histories of the violators.

            House Bill 1184 requires a staff leasing service and a client company to share certain rights relating to employee control, employee assignments, hiring, firing, discipline, employment and safety policies, and the management of workers' compensation claims. However, the act specifies that a client company retains the responsibility for certain activities and outcomes of assigned employees related to the company's business.