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    Lorrie Baker   

For worker leasing companies

Employee leasing is an alternative for employers to manage the administrative functions of their work force. Employers enter into a contract with a worker leasing company, commonly known as a Professional Employer Organization (PEO). In most cases, the workers are already established with the employer. The PEO often hires these workers and leases them back to the employer under a contract for a fee for the staffing or management services provided. Worker-leasing companies take on the responsibility of the payroll, employment taxes, and worker benefit fund assessments. They may also offer workers' compensation insurance, retirement options, and medical benefits.

Worker leasing differs from temporary staffing services. All arrangements for staffing are on a worker leasing basis, requiring specific licensing, unless the workers are provided to a client on a "temporary basis" with written documentation that indicates the duration of the work to be performed under the special situation. "Temporary basis" means providing workers to a client for special situations such as to cover employee absences, employee leaves, professional skill shortages, seasonal workloads and special assignments and projects with the expectation that the position or positions will be terminated upon completion of the special situation. Workers also are provided on a temporary basis if they are provided as probationary new hires with a reasonable expectation of transitioning to permanent employment with the client and the client uses a preestablished probationary period in its overall employment selection program.

Oregon Revised Statute (ORS) 656.850 requires leasing companies to obtain a license from the director of the Department of Consumer and Business Services prior to doing business in Oregon.

OAR Chapter 436, Division 050-0400 - Employer/Insurer coverage responsibility
Bulletin 271 - Instructions for completing application
  Application for Worker Leasing Company License (hints)
  Attachment A - Employment Tax Certification
  Attachment B - Oregon Revenue Tax
  Attachment C - Internal Revenue Tax Certification
Bulletin 273 - Instructions for filling out Worker Leasing Notices, Terminations, and Endorsements
  Worker Leasing Notice to the Department of Consumer & Business Services
  Termination of Workers' Compensation Coverage to client of worker leasing company
  Endorsement to Worker Leasing Notice
  Active worker leasing companies
  Worker leasing vs. temporary staffing
  Training and Events
  Dispute resolution
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If you have questions about this webpage, please contact Lorrie Baker, 503-947-7591.