§ 1033. Licensure; requirements; application; fees

(a) No person shall engage in the business of employee leasing in Vermont unless the person is granted a license by the Commissioner under this chapter. Only qualified applicants as determined by the Commissioner shall be licensed.

(b) An applicant may file an application for licensure with the Commissioner on a form required by the Commissioner accompanied by a one-time, nonrefundable application fee of $100.00 and a licensing fee of $1,000.00. The applicant shall also file the following, satisfactory to the Commissioner:

(1) A list of all the controlling persons of the applicant and an affidavit from each attesting to his or her good moral character and management competence.

(2) Documentation that the applicant maintains a place of business in this State and that the applicant is licensed, if required, in the applicant's state of domicile.

(3) Certification that the applicant does not conduct a temporary help business through the same entity as the employee leasing business.

(4) An agreement to:

(A) maintain separate records for each client company;

(B) file reports as required by law for each of its client companies; and

(C) pay unemployment contributions and workers' compensation premiums based on the experience rating of each client company, provided that, for workers' compensation premiums, the client company has sufficient workers' compensation premium volume to be experience rated, otherwise the workers' compensation premiums shall be paid the rate approved for an employer that cannot be experience rated.

(5) An acknowledgment of the applicant's joint and several liability with its client companies for protections required by or damages due under laws designed to protect the health, safety, or welfare of an individual leased to a client company.

(6) Evidence of financial responsibility in accordance with subsection 1035(a) of this title.

(7) Evidence that the applicant has deposited securities or posted a bond, in a manner and amount approved by the Commissioner to secure the performance of the applicant's obligations pursuant to subdivision (5) of this subsection. The amount of securities or bond shall be at least the minimum net worth required by subsection 1035(a) of this title. An employee leasing company shall not require a client company to contribute in any manner to payment of the securities or bond required under this subdivision. The Commissioner may waive the bonding or security requirement if the applicant demonstrates that it is accredited by a national accrediting entity that has been approved by the Commissioner.

(8) An agreement that the Commissioner may liquidate any securities or bond provided pursuant to subdivision (7) of this subsection upon default by the applicant in the payment of wages, benefits, workers' compensation premiums or awards, or unemployment compensation premiums as required by this chapter.

(c) A license under this chapter shall expire one year from the date shown on the license. At least 60 days before the expiration date of the license, a licensee shall file a renewal application accompanied by the licensing fee and documentation as required by subsection (b) of this section.

(d) The Commissioner may deny, suspend, or revoke the license of an employee leasing company for any violation of this chapter.

(e) Fees collected under this section shall be credited to a special fund established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5 and shall be available to the Department of Labor to offset the cost of providing those services. (Added 1995, No. 173 (Adj. Sess.), § 1; amended 1997, No. 59, § 37, eff. June 30, 1997; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)