BP BHEAD INT S [atlas:bill]

AN ACT Relating to joint and several liability for purposes of unemployment compensation and workers' compensation; amending RCW 51.16.060; adding a new section to chapter 50.24 RCW; adding a new section to chapter 51.16 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. LEGISLATIVE INTENT. The legislature finds that temporary, leased, and contract employees are entitled to the state's basic safety net of job protections. Third parties benefit from the labors of such employees, and should be held accountable when temporary services agencies, employee leasing companies, and other contract employers are unable to meet their employment-related obligations. It is the intent of the legislature that third parties that benefit from the labors of temporary, leased, and contract employees should be subject to joint and several liability for unpaid unemployment insurance contributions and workers' compensation premiums.

NEW SECTION. Sec. 2. A new section is added to chapter 50.24 RCW to read as follows:

UNEMPLOYMENT COMPENSATION. (1) A temporary services agency, an employee leasing agency, or any other entity that is responsible, under contract or in fact, for the payment of wages to individuals in remuneration for personal services performed for, or for the benefit of, a third party is liable for contributions due under this title to insure individuals performing personal services for the third party.

(2) If a temporary services agency, an employee leasing agency, or any other entity fails to pay contributions due under this title to insure individuals performing one hundred fifty hours or more per quarter of personal services for a third party, the third party is jointly and severally liable for such contributions, interest, and penalties. The commissioner has all of the remedies of collection against the third party under the provisions of this title.

(3) The temporary services agency, the employee leasing agency, or the other entity must keep separate records and submit separate quarterly reports for each third party for which one or more individuals perform one hundred fifty hours or more per quarter of personal services.

(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Employee leasing agency" means an individual or entity that, for a fee, places the employees of a client onto its payroll and leases the employees back to the client.

(b) "Temporary services agency" means an individual or entity that is engaged in the business of furnishing individuals to perform services on a part‑time or temporary basis for a third party.

NEW SECTION. Sec. 3. A new section is added to chapter 51.16 RCW to read as follows:

WORKERS' COMPENSATION. (1) A temporary services agency, an employee leasing agency, or any other entity that is responsible, under contract or in fact, for the payment of wages to individuals in remuneration for personal services performed for, or for the benefit of, a third party is liable for premiums due under this title to insure individuals performing personal services for the third party.

(2) If a temporary services agency, an employee leasing agency, or any other entity fails to pay premiums due under this title to insure individuals performing one hundred fifty hours or more per quarter of personal services for a third party, the third party is jointly and severally liable for such premiums, interest, and penalties. The department shall have all of the remedies of collection against the third party under the provisions of this title.

(4) The benefits and remedies conferred by this title upon individuals performing one hundred fifty hours or more per quarter of personal services is to the exclusion of any other remedy, proceeding, or compensation for personal injuries or sickness, caused by the temporary services agency, the employee leasing agency, the other entity, or the third party except as otherwise provided in this title. All civil actions and civil causes of actions by such individuals against the temporary services agency, the employee leasing agency, the other entity, or the third party for personal injuries or sickness are abolished, except as otherwise provided in this title.

(5)(a) Every temporary services agency, employee leasing agency, or other entity shall secure the payment of its obligations under this title by: (i) Insuring and keeping insured the payment of such benefits with the state fund; or (ii) qualifying as a self-insurer under this title. No temporary services agency, employee leasing agency, or other entity shall secure the payment of its obligations under this title by or through a third party.

(b) Every third party shall secure the payment of compensation under this title by: (i) Insuring and keeping insured the payment of such benefits with the state fund; or (ii) qualifying as a self-insurer under this title. No third party shall secure the payment of its obligations under this title by or through a temporary services agency, employee leasing agency, or other entity.

(6) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Employee leasing agency" means an individual or entity that, for a fee, places the employees of a client onto its payroll and leases the employees back to the client.

(b) "Temporary services agency" means an individual or entity that is engaged in the business of furnishing individuals to perform services on a part‑time or temporary basis for a third party.

Sec. 4. RCW 51.16.060 and 1985 c 315 s 1 are each amended to read as follows:

Every employer not qualifying as a self-insurer, shall insure with the state and shall, on or before the last day of January, April, July and October of each year thereafter, furnish the department with a true and accurate payroll for the period in which workers were employed by it during the preceding calendar quarter, the total amount paid to such workers during such preceding calendar quarter, and a segregation of employment in the different classes established pursuant to this title, and shall pay its premium thereon to the appropriate fund. Premiums for a calendar quarter, whether reported or not, shall become due and delinquent on the day immediately following the last day of the month following the calendar quarter. The sufficiency of such statement shall be subject to the approval of the director: PROVIDED, That the director may in his or her discretion and for the effective administration of this title require an employer in individual instances to furnish a supplementary report containing the name of each individual worker, his or her hours worked, his or her rate of pay and the class or classes in which such work was performed: PROVIDED FURTHER, That in the event an employer shall furnish the department with four consecutive quarterly reports wherein each such quarterly report indicates that no premium is due the department may close the account: PROVIDED FURTHER, That the department may promulgate rules and regulations in accordance with chapter 34.05 RCW to establish other reporting periods and payment due dates in lieu of reports and payments following each calendar quarter, and may also establish terms and conditions for payment of premiums and assessments based on estimated payrolls, with such payments being subject to approval as to sufficiency of the estimated payroll by the department, and also subject to appropriate periodic adjustments made by the department based on actual payroll((: AND PROVIDED FURTHER, That a temporary help company which provides workers on a temporary basis to its customers shall be considered the employer for purposes of reporting and paying premiums and assessments under this title according to the appropriate rate classifications as determined by the department: PROVIDED, That the employer shall be liable for paying premiums and assessments, should the temporary help company fail to pay the premiums and assessments under this title)).

NEW SECTION. Sec. 5. CAPTIONS. Captions used in this act are not any part of the law.