Oregon Department of Consumer and Business Services, Workers' Compensation Division

Rule Rule 436-180-0100
Responsibility for Providing Coverage under a Lease Arrangement


(1) General. Every worker leasing company providing workers to a client must satisfy the requirements of ORS 656.017 (Employer required to pay compensation and perform other duties) and 656.407 (Qualifications of insured employers).
(2) When the worker leasing company must provide coverage. Except when the client provides coverage as described in section (3) of this rule, when a worker leasing company provides workers to a client, the worker leasing company must provide coverage for the leased workers and any subject workers employed by the client.
(3) When the client provides coverage. When during the term of the worker leasing contract, the director has proof of coverage for a client-purchased policy on file, or when the client is a self-insured employer:
(a) The client’s coverage extends to the leased workers and any subject workers employed by the client; and
(b) The client will be considered a noncomplying employer if it allows its coverage to terminate and continues to lease or employ any subject workers, unless the client obtains new coverage or the worker leasing company has notified the director that it provides coverage for the client under OAR 436-180-0110 (Notice of Client Coverage; Changes to Coverage Information; Termination; Reinstatements)(1).
(4) Leasing from more than one worker leasing company. A client may not lease workers from more than one worker leasing company at a time unless the client provides coverage as described under section (3) of this rule.
(5) Providing coverage to another worker leasing company. A worker leasing company may not provide coverage for another worker leasing company doing business in Oregon or any other state. This section does not apply when:
(a) Two or more worker leasing companies that share common majority ownership are included as named insureds on a single policy; and
(b) Each worker leasing company separately meets the requirements of ORS 737.270 (Determination of workers’ compensation premiums for worker leasing company)(4).
(6) Leasing from unlicensed worker leasing company. No person may obtain workers by contract and for a fee on a non-temporary basis from an unlicensed worker leasing company.
Source

Last accessed
Jun. 8, 2021