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

Rule Rule 436-180-0140
Qualifications, Applications, and Renewals for License as a Worker Leasing Company


(1) Prohibition against leasing workers without a license. No person may perform services as a worker leasing company in Oregon without a valid license.
(2) Qualification for license. To qualify for an initial license or renewal, a person must:
(a) Be registered and authorized to do business in Oregon under ORS chapter 58, 60, 62, 63, 65, 67, 70, or 648, as applicable, or be a municipal or public corporation as defined in ORS 297.405 (Definitions for ORS 297.020, 297.230, 297.405 to 297.740 and 297.990);
(b) Maintain coverage under ORS 656.017 (Employer required to pay compensation and perform other duties);
(c) Submit a complete application under this rule and be approved for licensure; and
(d) Upon approval, pay the required licensing fee of $2,050.
(3) Application for full leasing license. Except as described in section (4) of this rule, each applicant for an initial license must submit Form 2466, “Worker Leasing License Application.” The form and accompanying documentation must include:
(a) Complete information for the applicant, including:
(A) Legal and assumed business names;
(B) Mailing address;
(C) Phone number;
(D) FEIN;
(E) Physical address of the principal place of business;
(F) Names and contact information, including a phone number and valid email address, for at least two representatives who are authorized to respond to inquiries about licensing, leasing, and coverage;
(G) A disclosure of all states where the applicant operates as a worker leasing company, including identification numbers and expiration dates of any licenses, registrations, recognitions, or certifications and disclosure of any that are not in good standing;
(H) Signed releases for verification of compliance with tax laws from Oregon Employment Department, Oregon Department of Revenue, and the Internal Revenue Service;
(I) Written procedures that demonstrate how the applicant will ensure its clients provide adequate training, supervision, and instruction to meet the requirements of ORS chapter 654;
(J) A description of any present or prior experience of providing workers by contract and for a fee in any state;
(K) A record of any proceedings related to bankruptcies, liens, default, or insolvency, including full details of the:
(i) Nature and dates of the actions;
(ii) Outcomes, and conditions imposed, including but not limited to: administrative orders, lawsuits, judgments, and discharges or permitted resignations;
(iii) Name and location of the court or jurisdiction, case numbers, and dates of any past, current, or pending proceedings; and
(iv) Identification numbers of any licenses, registrations, recognitions, or certifications affected by the actions;
(L) A record of any civil or criminal actions involving or demonstrating dishonesty or misrepresentation, including but not limited to fraud, theft, burglary, embezzlement, deception, perjury, forgery, counterfeiting, bribery, extortion, money laundering; or securities, investments, or insurance violations on the part of the applicant or any controlling person. Records of such actions must include full details of:
(i) The nature and dates of the actions;
(ii) Outcomes, sentences, and conditions imposed, including but not limited to administrative orders, charges, guilty pleas, pleas of no contest, criminal convictions, lawsuits, judgments, and discharges or permitted resignations;
(iii) Name and location of the court or jurisdiction, case numbers, and dates of any past, current, or pending proceedings; and
(iv) Identification numbers of any licenses, registrations, recognitions, or certifications affected by the actions;
(M) A record of any administrative, civil, or criminal actions against the applicant by a regulatory agency of any state regarding worker leasing activities. Records must include full details of:
(i) The nature and dates of the actions;
(ii) Outcomes, sentences, and conditions imposed, including but not limited to administrative orders, charges, guilty pleas, pleas of no contest, criminal convictions, lawsuits, judgments, and discharges or permitted resignations;
(iii) Name and location of the court or jurisdiction, case numbers, and dates of any past, current, or pending proceedings; and
(iv) Identification numbers of any licenses, registrations, recognitions, or certifications affected by the actions;
(b) Complete information for each controlling person, including:
(A) Full name, position, and date of birth;
(B) Any other names used;
(C) Residential and business address;
(D) Phone number;
(E) Email address;
(F) The information required under paragraphs (3)(a)(J) through (M) of this rule;
(c) A notarized affidavit from an authorized representative of the applicant and a statement from each controlling person verifying the information provided is complete and truthful, and that there is no omission of material fact; and
(d) Any additional information requested by the director.
(4) Application for limited leasing license. Notwithstanding section (3) of this rule, a person may apply for a limited leasing license by submitting Form 5362, “Worker Leasing License Application - Limited.”
(a) To qualify for a limited license, the person must:
(A) Be licensed or certified in a state that the director has determined has requirements substantially similar to the requirements of these rules;
(B) Have no more than:
(i) Two Oregon clients; and
(ii) Five leased workers, in total;
(C) Be domiciled in a state other than Oregon;
(D) Not maintain an Oregon location; and
(E) Not directly solicit clients located or domiciled in Oregon;
(b) The application and accompanying documentation must include:
(A) The information required under paragraphs (3)(a)(A) through (I) of this rule;
(B) A notarized signature of an authorized representative of the applicant; and
(C) Any additional information requested by the director;
(c) Upon approval of the application under section (5) of this rule, the applicant must pay the required licensing fee of $2,050; and
(d) After the license is issued, the licensee must submit a full application under section (3) of this rule within 30 days after the date it no longer qualifies for a limited license under subsection (4)(a).
(5) Review of application. The director will review complete applications. Following receipt of all information required under section (3) or (4) of this rule:
(a) The director may request additional information to further clarify the information and documentation submitted with the application;
(b) The director may conduct a background investigation of the applicant, an owner, or any controlling person. Information learned through a background investigation, or other information submitted during the application process, may be the basis for the director to refuse to issue or renew a license, or to disqualify the applicant or a controlling person from making further application; and
(c) The director will notify the applicant of the decision to approve or deny the application in writing:
(A) If the application is denied, the notice will include the reason for the denial and how to appeal the decision; or
(B) If the application is approved, the director will issue a license upon receipt of the $2,050 licensing fee under subsection (2)(d) of this rule.
(6) License renewal. A license will automatically expire two years after the date it was issued unless renewed by the licensee. To renew a license, the worker leasing company must:
(a) If the license was applied for under section (3) of this rule, submit a complete Form 5364, “Worker Leasing License Application – Renewal,” to the director at least 90 days before the expiration of the current worker leasing license. The form and accompanying documentation must include:
(A) The information required under paragraphs (3)(a)(A) through (I) of this rule;
(B) Disclosure of any information required under paragraphs (3)(a)(K) through (M) of this rule that has not been previously disclosed to the director;
(C) Complete information for each controlling person, including:
(i) Full name, position, and date of birth;
(ii) Any other names used;
(iii) Residential and business address;
(iv) Phone number;
(v) Email address; and
(vi) Disclosure of any information required under paragraphs (3)(a)(K) through (M) of this rule that has not been previously disclosed to the director;
(D) A notarized affidavit from an authorized representative of the applicant and a statement from each controlling person verifying the information provided is complete and truthful, and that there is no omission of material fact; or
(b) If the license was applied for under section (4) of this rule, submit a complete Form 5362, “Worker Leasing License Application – Limited,” as described under subsection (4)(b) of this rule; and
(c) Submit any supplemental material necessary to establish a complete application, including any information requested by the director, at least 45 days before expiration of the current license; and
(d) Upon application approval, pay the required licensing fee of $2,050.
(7) Changes and corrections to application information. The worker leasing company must notify the director in writing of any changes or corrections to information provided in any application approved under this rule within 30 days of the effective date of the change or knowledge of incorrect information.
(8) Electronic submission of application materials. Notwithstanding any other section of this rule, with the director’s prior authorization, an applicant may submit application materials electronically using the appropriate application form or an electronic equivalent that contains all of the information required by this rule.
(9) Denial of application. The director may deny an application for initial license or renewal for reasons including, but not limited to:
(a) Misrepresentation of information submitted in the application;
(b) Failure to meet any of the requirements of ORS 656.850 (License), 656.855 (Licensing system for worker leasing companies), or these rules;
(c) Denial of a previous application for, or prior suspension or revocation of, a worker leasing license by the director;
(d) Denial, suspension, or revocation of a license, registration, or certification, or other disciplinary action by any governmental agency or entity;
(e) Having exercised authority, control, or decision-making responsibility concerning any worker leasing company during a time that company had its authorization to provide worker leasing services denied, suspended, revoked, or restricted;
(f) Having been the subject of an order, adverse to the applicant or controlling person, by any governmental agency or entity in connection with any worker leasing activity;
(g) Having been found by any governmental agency or entity to have made a false or misleading statement, material misrepresentation, or material omission, or to have failed to disclose material facts;
(h) Violations of worker leasing statutes or regulations in any state;
(i) Failure to establish minimum experience, training, or education that demonstrates competency in providing worker leasing services;
(j) Nonpayment of taxes, liens, fees, assessments, civil penalties, or any other moneys due the State of Oregon or another jurisdiction;
(k) Having filed for bankruptcy, been declared bankrupt, or been the subject of other proceedings related to insolvency, default, or delinquency;
(l) Having been convicted of, or pleaded guilty or no contest to, any felony or misdemeanor involving dishonesty or misrepresentation, including but not limited to fraud, theft, burglary, embezzlement, deception, perjury, forgery, counterfeiting, bribery, extortion, money laundering; or violations involving securities, investments, or insurance violations on the part of the applicant or any controlling person; or
(m) Having failed to provide documents requested by the director.
(10) Disqualification. The director may disqualify an applicant or controlling person from applying for a license in the future for any of the reasons listed under section (9) of this rule. If an applicant or controlling person is disqualified:
(a) The applicant or controlling person may not reapply for a license for at least two years from the disqualification date; and
(b) The disqualification may apply to any new worker leasing company created through the sale, transfer, or conveyance of ownership or of the worker leasing company’s assets to another person, owner, or controlling person.
(11) Appeal of denial or disqualification. An applicant or controlling person may appeal a denial or disqualification under this rule as provided in OAR 436-180-0008 (Requests for Hearings or Administrative Review) and OAR 436-001.
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Last accessed
Jun. 8, 2021