There are 2 steps a worker-leasing company should take before submitting an application.
(1) Register with the office of Secretary of State, Corporations Division, to conduct business in Oregon .
(2) Have workers’ compensation coverage with a Guaranty Contract on file with the Worker’s Compensation Division.
The licensing process will be prolonged if these steps are not followed.

As part of the application process leasing companies are required to pay $2,050, for a two-year license. Each license automatically expire after the 2-year period unless renewed by the leasing company. A “Plan of Operation” must be completed and submitted with the application.
Oregon OSHA rules consider a worker leasing company jointly responsible, along with the client company, for ensuring job safety and health. The “Plan of Operation” details what the worker leasing company will do to ensure that clients follow the requirements of ORS chapter 654 of the Oregon Occupational Safety and Health Act.

Worker leasing companies are required to have a designated Oregon location with an Oregon telephone number. Also, they must have an authorized representative who is knowledgeable enough to answer inquiries concerning the business in Oregon. At their Oregon location they must maintain copies of signed contracts, copies of signed worker-leasing notices, cancellations of leasing arrangements, and payroll records for all Oregon employees.

After licensing, the worker leasing company is required to keep DCBS updated on client information and changes to the leasing company’s information. Within fourteen days of the effective date of the leasing agreement the leasing company must file form 440-2465 (Worker
Leasing Notice), for clients whose workers compensation coverage is provided by the leasing company. Leasing companies are also required to file a copy of the notice with their insurer.

After the notices have been filed and accepted by DCBS, the leasing company is responsible for ensuring that copies of the “Notice of Compliance,” Form 440-1188 (1188), are posted at their clients’ businesses.

If there are changes to any information contained on the Worker Leasing Notice the worker leasing company must file, form 440-3270 (Endorsement to Worker Leasing Notice) with WCD. Written notice of termination is required when a worker leasing company terminates its agreement with a client or when they no longer provide workers’ compensation coverage. This notice of termination, form 440-4271, must be sent to the client, insurer and WCD. The termination will not go into effect until 30 days after the Department receives the notice. Changes to the worker leasing company’s designated in-state location, authorized representative, telephone number or controlling persons must be made in writing and received by the Department within 30 days of the date of change.

A change in the worker leasing company’s form of legal entity requires that the new entity submit an application to become licensed. The worker leasing license is not transferable to the new entity. The worker leasing license can be disqualified, suspended or revoked if it is determined that the worker leasing company failed to comply with any of the requirements. There may also be civil penalties imposed for non-compliance.

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