Relating to notice of staff leasing services company workers' compensation claim and payment information; providing an administrative violation.
Impact
By implementing these requirements, HB625 aims to improve the flow of information related to workers' compensation claims in the context of staff leasing. This increased transparency could help client companies better understand their exposure to risks and manage their workers' compensation costs more effectively. Furthermore, it provides client companies with the information needed to ensure that their interests are adequately represented when claims arise, ultimately fostering a more responsible leasing environment.
Summary
HB625 focuses on enhancing the required communication between staff leasing services companies and client companies regarding workers' compensation claims. The bill mandates that staff leasing companies provide a detailed written report to their client companies when requested. This report must include a list of claims associated with the client and relevant details about payments made and reserves established for each claim. The intention behind this requirement is to ensure transparency and accountability in the management of workers' compensation claims within staff leasing arrangements.
Contention
While the bill aims to enhance transparency, there may be concerns regarding the administrative burden it places on staff leasing companies, particularly regarding the timelines for delivering requested information. The bill specifies that companies must submit this information within 60 days of a written request, which could be seen as an obligation that complicates the staff leasing process. Additionally, penalties in the form of administrative violations are outlined for non-compliance, creating pressure for these companies to adhere closely to the new regulations.
Last_action
The bill successfully passed out of committee and became effective on September 1, 2011, reflecting a legislative shift towards more stringent oversight in the staff leasing industry, particularly concerning workers' compensation claims.