§ 1036. Employee leasing company; duties; deemed employer

(a) A licensee shall:

(1) Register with the following within 10 days after licensure under this chapter:

(A) The Department of Labor.

(B) The Department of Taxes.

(C) The Secretary of State.

(D) The U.S. Internal Revenue Service.

(2) Make timely payment of workers' compensation premiums and unemployment compensation on all leased employees based on the experience rating of the client company to which the employees are leased.

(3) File all reports as required by this chapter and applicable law.

(4) Maintain financial responsibility and management competence.

(5) Provide notification of the employment arrangement to all employees leased pursuant to an employee leasing agreement within 10 days after executing the agreement.

(6) Keep any securities or bond in effect or retain accreditation, whichever was provided pursuant to subdivision 1033(b)(7) of this title during the period the license is valid.

(b) Except as provided in sections 1037 and 1038 of this title, an employee leasing company licensed under this chapter shall be deemed to be the employer for the payment of wages and other employment benefits due to leased employees pursuant to the employee leasing agreement. An employee leasing company shall implement an employee grievance system and provide to each leased employee a manual that outlines the terms and conditions of employment. (Added 1995, No. 173 (Adj. Sess.), § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)