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Workers' Compensation Division (WCD)

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Reg Gregory    503-947-7665    Employee Leasing Policy Identification Oregon policy filings-tracking of client experience   Oregon law requires all employers with one or more subject workers to provide workers' compensation insurance. The employer can obtain workers' compensation coverage: Directly through an insurer By becoming certified as a self-insured employer By obtaining coverage under a worker leasing arrangement     In a worker leasing arrangement, a worker leasing company, also known as professional employer organization, may provide the workers' compensation coverage for the workers. In Oregon, the coverage under a worker leasing arrangement is provided by one, and only one, of the following: The client's workers' compensation insurance policy The self-insured employer A worker leasing company's workers' compensation insurance policy     If a client has obtained its own policy or is certified as a self-insured employer, coverage automatically defaults to the client's coverage, regardless of the coverage the worker leasing company may have. Oregon law requires tracking the experience rating for each employer or client employer. When coverage is provided under a master policy established by a worker leasing company, the worker leasing company's master policy must include separate policy numbers that are reported to the National Council on Compensation Insurance for each client employer. The code descriptions found under the "Employee Leasing Policy Identification" field in the IAIABC EDI Implementation Guide for Proof of Coverage, Release 2.1, Data Dictionary for reporting worker leasing policies do not readily fit the Oregon reporting requirements. When policy data is transmitted using codes two through six, the department will interpret that the client employer is covered by the worker leasing company's policy. The worker leasing company's insurer is responsible for Oregon compensable work-injury claims of both leased and non-leased workers of the client employer. Oregon will assume the policy information submitted under these codes was generated because of the experience rating tracking. If code seven is reported, the department will interpret that the client company obtained its own policy and is the named insured covering the client employer's leased and non-leased workers. Insurers report proof-of-coverage information for worker leasing policies to the department the same as any other policy issued for an employer in Oregon. However, worker leasing companies must file separate notices with the department, when their clients have arranged for workers' compensation coverage through the worker leasing company. These notices are called "worker leasing notices." If an insurer reports policy information, this does not excuse the worker leasing company of its obligation to issue and cancel a worker leasing notice according to the worker leasing arrangement.   In summary: Code one indicates a policy extending coverage for all the insured's Oregon subject workers. There is no association with a worker leasing company. Codes two through six indicates a policy established by a worker leasing company with coverage extended for Oregon subject workers, whether leased or not. Code seven indicates a policy extending coverage for all the insured's Oregon subject workers whether leased or not. This is different from code one in that there is an association with a worker leasing company. The worker leasing company must file worker leasing notices directly with the department for each of the covered clients when the client is not the named insured but instead is or may be an additional named insured relying on the arrangement for coverage through a worker leasing company.     If you have questions about this Web page, please contact Reg Gregory, 503-947-7665.

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