“Leased Employee” Defined

Q

Recently in our office we were discussing the businessowners liability coverage form, that states “employee” includes a “leased worker.” What is a “leased worker?” Is there a time limit for the length of the lease, or can it be infinite? Can you give use some guidelines?

New York Subscriber

A

The definition of a “leased worker” found in the liability coverage form intentionally does not specify more than that the worker must be leased by a labor leasing firm. This is because laws governing such operations vary by state. In this era of workers compensation concerns, there have been many creative attempts to dismiss workers, form a new corporation (sometimes more than one)  and hire the same workers only to lease them back to the same company. Look to the laws in your state — the bureau of workers compensation should be able to assist.

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