Appendix C

Employee Leasing and Temporary Help Definitions by State

State Employee Leasing Definition Temporary Help Definition
Alabama None. None.
Alaska None. None.
Arizona For purposes of this section, "leasing employer" or "temporary services employer" means an employing unit that contracts with clients or customers to supply workers to perform services for the client or customer and that performs all of the following:
    (1) Negotiates with clients or customers for such matters as the time of work, the place of work, the type of work, the working conditions, the quality of services and the price of services.

    (2) Determines assignments or reassignments of workers, even though workers retain the right to refuse specific assignments.

    (3) Retains the authority to assign or reassign a worker to other clients or customers if a worker is determined unacceptable by a specific client or customer.

    (4) Assigns or reassigns the worker to perform services for a client or customer.

    (5) Sets the rate of pay of the worker, whether or not through negotiation.

    (6) Pays the worker form his own account or accounts.

    (7) Retains the right to hire and terminate workers. (Arizona Revised Statutes Chapter 4, Section 23-614(G).
Arkansas "Employee leasing firm" shall mean any person engaged in providing service of employees pursuant to one or more employee leasing arrangements. (Arkansas Regulation 58 Section 4D)

"Employee Leasing Arrangement" shall mean an arrangement or agreement, under written contract or otherwise, whereby:

    1. an employee leasing firm assigns or purports to assign human beings, or the labor or services of human beings, to clients, for whom the human beings either do perform or are expected to perform such labor or services;

    2. the arrangement is entered to be, or is, on-going rather than temporary in nature; and

    3. common law employment rights and responsibilities relative to the "assigned" human beings, including the employer's right of direction and control of the "employee" as to the method and manner of doing the work, are shared by the employee leasing firm and the client. (Arkansas Regulation. 58, Section 4G)
 "Temporary Employee" shall mean a person employed either through another person or directly by an employer to support or supplement the existing work force in special situations such as employee absences, and temporary skill shortages, seasonal workloads, and special assignments and projects with the expectation that the person's position will be terminated upon completion of the task or function. Contracting for services to be performed by temporary employee shall not be considered the making of employee leasing arrangements. (Arkansas Regulation 58 Section 4H)
California A "temporary services employer" and a "leasing employer" is an employing unit that contracts with clients or customers to supply workers to perform services for the client or customer and performs all of the following functions:

    (1) Negotiates with clients or customers for such matters as time, place, type of work, working conditions, quality, and price of services.

    (2) Determines assignments or reassignments of workers, even thought workers retain the right to refuse specific assignments.

    (3) Retains the authority to assign or reassign a worker to other clients or customers when a worker is determined unacceptable by a specific client or customer.

    (4) Assigns or reassigns the worker to perform services for a client or customer.

    (5) Sets the rate of pay of the worker, whether or not through negotiation.

    (6) Pays the worker from its own account or accounts.

    (7) Retains the right to hire and terminate workers. (California Unemployment Insurance Code Section 606.5(b))
Colorado For the purposes of this section, an "employee leasing company" shall be defined as any employing unit which, for a fee, places a client company's workers onto its payroll and assigns them to the client company for at least six consecutive months. (Colorado Revised Statutes 8-70-114(2)(c)) For the purposes of this section, "temporary help contracting firm" means any person who is in the business of employing individuals and, for compensation from a third party, providing those individuals to perform work for the third party, under supervision of the third party. (Colorado Revised Statutes 8-73-105.5(1))
Connecticut An employing unit that contracts with a client company to supply workers to perform services for the client company, excluding part-time or temporary workers. (Agency policy based on Massachusetts Regulations Section 5656-5659c.) Any person conducting a business which consists of employing individuals directly for the purpose of furnishing part-time or temporary help to others. (Connecticut Statutes Section 31-129(e))
Delaware A firm that supplies another organization with its entire staff and manages all personnel affairs for that other firm. (NSLA Literature) A firm that supplements the staffing needs of another organization. (Working Definition)
District of Columbia A firm that provides temporary and permanent employees for a fee to employers. (Working Definition) A firm that provides temporary help, for a fee, to employers who have a vacancy that must be filled at once. (Working Definition)
Florida The term "employee leasing company" means an employing unit which maintains a valid and active license under chapter 468 and which maintains the records required by s. 443.171(7) and, in addition, maintains a listing of clients of the employee leasing company and of the employees, including social security numbers, who have been assigned to work at each client company job site. Further, each client company job site must be identified by industry, products or services, and address. The client list shall be provided to the division by June 30 and by December 21 of each year. For purposes of this subsection, "client" means a party who has contracted with an employee leasing company to provide a worker, or workers, to perform services for the client. Leased employees shall include employees subsequently placed on the payroll of the employee leasing company shall notify the division within 30 days of the initiation of termination of the company's relationship with any client company pursuant to chapter 468. (Section 443.036(16) Florida Statues - Unemployment Compensation)

"Employee leasing" means an arrangement whereby a leasing company assigns its employees to a client and allocates the direction and control over the leased employees between the leasing company and the client. (Section 468.520(4) Florida Statutes - Employee Leasing Companies)		 A temporary help arrangement, whereby an organization hires its own employees and assigns them to clients to support or supplement the client's workforce in work situations such as employee absences, temporary skill shortages, seasonal work load and special assignments and projects. (Section 468.520(4)(a) Florida Statutes - Employee Leasing Companies)
Georgia As used in this chapter, the term "employee leasing company" means an independently established business or entity which engages in the business of providing leased employees to any other employing unit under the following conditions:

    (1) Negotiates with clients or customers for such matters as time, place, type of work, working conditions, quality and price of service;

    (2) Determines assignments of individuals to its clients or customers, even if the individuals retain the right to refuse specific assignments;

    (3) Sets the rate of pay of the individuals, whether or not through negotiation;

    (4) Pays the individuals from its accounts; and

    (5) Hires and terminates individuals who perform services for the clients or customers. (Georgia Employment Security Law 34-8-32(a))
 As used in this chapter, the term "temporary help contracting firm" means any person who is in the business of employing individuals and, for compensation from a third party, providing those individuals to perform work for the third party under the general or direct supervision of the third party. Employment with a temporary help contracting firm is characterized by a series of limited-term assignments of an employee to a third party, based on a contract between the temporary help contracting firm and the third party. A separate employment contract exists between the temporary help contracting firm and each individual it hires as an employee. Completion of an assignment for a third party by an employee employed by a temporary help contracting firm does not, in itself, terminate the employment contact between the temporary help contracting firm and the employee. (Georgia Employment Security Law 34-8-46)
Hawaii A contractual arrangement under which the leasing firm is the employer of all or part of the client's workforce. (Hawaii Revised Statutes 383-6) A contractual arrangement under which the temporary help firm is the employer who provides workers to a client company on a temporary basis. (Hawaii Revised Statutes 383-6)
Idaho "Professional employer arrangement" means an arrangement, under contract or otherwise, whereby:

    (a) A professional employer assigns workers to perform services for a client;

    (b) The arrangement is intended to be, or is, on-going rather than temporary in nature; and

    (c) Employer responsibilities are in fact shared by the professional employer and the client for assigned workers. (Chapter 24, Title 44, Idaho Code 44-2403(5))
 "Temporary employee" means a worker employed by an organization which hires its own employees and assigns them to a third party to support or supplement the third party's work force in work situations such as employee absences, temporary skill shortages, seasonal workload conditions, and special assignments and projects. (Chapter 24, Title 44 Idaho Code 44-2403(7))
Illinois "Employee leasing company" means an individual or entity which contracts with a client to supply one or more workers to perform services for the client on an on-going rather than temporary basis. (56 Illinois Administrative Code 2765.5) "Temporary help firm" means an employing unit that hires its own employees and assigns them to clients to support or supplement the client's workforce in work situations such as employee absences, temporary skill shortages, seasonal workloads, and special assignments and projects. (56 Illinois Administrative Code 2865.1)
Indiana None. None.
Iowa None. None.
Kansas "Lessor employing unit" means any independently established business entity which engages in the business of providing leased employees to a client lessee. (Kansas Statutes Annotated 44-703(ff)) Private employment agencies which provide temporary workers to clients on a temporary help basis provided the private employment agencies are liable, as employer, for the payment of contributions on wages paid to the temporary workers. (Agency Policy Manual)
Kentucky "A practice whereby the payroll of our business is assumed by a second business." (Kentucky Field Audit Manual Operational Definition) "Temporary employment agencies provide workers to client businesses to meet needs which are of limited duration." (Kentucky Field Audit Manual operational Definition)
Louisiana None. None.
Maine "Employee leasing company" means a business entity that engages in the business of leasing employees to client companies without the client company severing an employer-employee relationship with the employees for services performed for the client company. (Statute: 1043, 8-A Employee leasing company)

"Employee leasing company means a sole proprietorship, partnership, corporation or other form of business entity, a substantial portion of the business of which consists of leasing employees to one or more client companies under contractual arrangements that are characterized by the following.

    A. Employment responsibilities are carried out by the employee leasing company or are shared by the employee leasing company and client company.

    B. Direction and control of employees provided by the employee leasing company are handled by the employee leasing company and the client company. "Direction and control" includes the right of the employee leasing company to hire and fire employees.

    C. The leasing arrangement is long term and does not including arrangements to provide temporary help services.

    D The leasing arrangement does not include providing labor dispute workers. "Labor dispute worker" means a worker who is furnished to an entity to replace workers involved in strikes, lockouts or other labor activities. (Maine Revised Statutes Annotated Section 14051-3)
 "Temporary help services" means a service whereby an organization hires its own employees and assigns them to a third party to support or supplement the third party's work force in work situations such as employee absences, temporary skill shortages, seasonal work load conditions and special assignments and projects. (Maine Revised Statues Annotated Section 14051- 3c)
Maryland None. None.
Massachusetts Employee Leasing Company: an employing unit that contracts with a client company to supply workers to perform services for the client company; provided that, the term employee leasing company does not include private employment agencies that provide workers to employers on a temporary help basis or entities such as driver-leasing companies which lease employees to an employing unit to perform a specific service. (430 Code of Massachusetts Regulations 5.09)

"Employee leasing company," a sole proprietorship, partnership, corporation or other form of business entity whose client companies under contractual arrangements that retain for personnel management functions, such as payroll, direction and control of workers, and the right to hire and fire workers provided by the employee leasing company; provided, however, that the leasing arrangement is long term and not an arrangement to provide the client company temporary help services during seasonal or unusual condition. (Massachusetts General Laws Annotated Chapter 152 Section 14A)		 None.
Michigan None. None.
Minnesota "Employee leasing firm" means an employing unit that provides its employees to other firms, persons, and employing units without severing its employer-employee relationship with the worker for the services performed for the leasee. (Minnesota Statutes 268.163 Subsection 2) None.
Mississippi None.None.
Missouri "Lessor employing unit" means an independently established business entity which engages in the business of providing leased employees to any other employer, individual, organization, partnership, corporation, or other legal entity, referred to in this section as a client lessee. (Missouri Employment Security Law Section 288.032.2(4)) For the purposes of this section, the term "employee leasing arrangement" shall not include temporary help services arrangements which assign their employees to clients for a finite period of time to support or supplement the client work force in special work situations, such as employee absences, temporary skill shortages and seasonal workloads, and which are not knowingly utilized as a mechanism of depriving one or more insurers of premiums which otherwise is properly payable. (Missouri Statutes 287.282(3))
Montana A company which provides employees to a client company on a long-term basis, under a contract. Leasing firm performs employer functions of hiring, firing and supervision. (Working Definition) None.
Nebraska An independently established business entity which engages in the business of supplying leased employees to a client-leasee. (Nebraska Revised Statutes 48-602(8)) None.
Nevada "Employee Leasing Company" means a company which, pursuant to a written agreement, places all or substantially all of the regular, full-time employees of a client company on its payroll and, for a fee, leases them to the client company on a regular basis without any limitation on the duration of their employment (Nevada Revised Statutes 616.254(3)) "Agreement for temporary employment" means an agreement pursuant to which a business hires employees and assigns them to another employer for a definite period, usually not exceeding 12 months, to support or supplement the employer's work force in special circumstances, such as when employees are absent from work, when there is a temporary shortage of skilled labor or during seasonal times when the workload increases. (Adopted Regulation of the Manager of the State Industrial Insurance System LCB File No. R084-94, Section 3)
New Hampshire "Employee leasing company" means any person engaged in providing the services of employees pursuant to one or more employee leasing arrangements and who satisfies the standards of RSA 277-B:9 (Rules Emp 306.01(c)) "Temporary help service" means a service whereby an organization hires its own employees and assigns them to clients to support or supplement the client work force in special work situations such as employee absences, temporary skill shortages, seasonal workloads, and special assignments and projects. (New Hampshire Revised Statutes Annotated Chapter 277-B:2) Employee leasing arrangement" means an arrangement, under written contract or otherwise, whereby:

    (a) An employee leasing company assigns an individual to perform services for the client company;

    (b) The arrangement is intended to be, or is, on-going rather than temporary in nature; and

    (c) Employer responsibilities are carried out by an employee leasing company which meets the standards of RSA 277-B:9, or are shared by the employee leasing company and the client company. (New Hampshire Revised Statutes Annotated Chapter 277-B:2-IV)
New Jersey None.

Proprietorship, partnership, corporation or any other entity that contracts with clients to supply workers to perform services for the client and that performs all of the following functions:

    1. Negotiates with clients for such matters as time, place, type of work, working conditions, quality and price of the services;

    2. Determines assignments or reassignments of workers, even though workers retain the right to refuse specific assignments;

    3. Retains authority to assign or reassign a worker to other clients when a worker is determined unacceptable by a specific client;

    4. Assigns or reassigns the worker to perform services for a client;

    5. Sets the rate of pay of the worker, whether or not through negotiation;

    6. Pays the worker from its own account or accounts;

    7. Retains the right to hire and terminate workers; and

    8. Provides copies of all state and Federal forms, as well as copies of all payroll records to the client.(Proposed regulation, currently no definition.)
 None.
New Mexico "Employee leasing arrangement" means any arrangement in which a client contracts with an employee leasing contractor for the contractor to provide leased workers to the client' provided, "employee leasing arrangements" does not include temporary workers; (New Mexico Statutes 60-13A-2D)

"leasing employer" means an employing unit that contracts with clients or customers to supply workers to perform services for the client or customer and performs the following functions:

    (a) retains the right to hire and terminate workers; and

    (b) pays the worker from its own account (New Mexico Unemployment Compensation Statutes 51-1-51.1)
 "temporary services employer" means an employing unit that contracts with clients or customers to supply workers to perform services for the client or customer and performs all of the following functions:

    (a) negotiates with clients or customers for such matters as time, place, type of work, working conditions, quality and price of the services;

    (b) determines assignments of workers, even through workers retain the right to refuse specific assignments;

    (c) retains the authority to reassign or refuse to reassign a worker to other clients or customers when a worker is determined unacceptable by a specific client or customer;

    (d) assigns the worker to perform services for a client or customer;

    (e) sets the rate of pay for the worker, whether or not through negotiation; and

    (f) pays the worker directly. (New Mexico Unemployment Compensation Statutes 51-1-52.1)
New York None. None.
North Carolina For purposes of this chapter, "employee service company" means a leasing company or temporary help service which contracts with clients or customers to supply individuals to perform services for the client or customer and which, both under contract and in fact:

    1. Negotiates with clients or customers for such matters as time, place, type of work, working conditions, quality and price of the services;

    2. Determines assignments or reassignments of individuals to its clients or customers, even if the individuals retain the right to refuse specific assignments;

    3. Sets the rate of pay of the individuals, whether or not through negotiation;

    4. Pays the individuals from its account or accounts; and

    5. Hires and terminates individuals who perform services for the clients or customers. (North Carolina Employment Security Law Section 96-8(r))
North Dakota None.None.
Ohio "Employee leasing company" means an entity which provides individuals to third party clients to perform services on a permanent basis and receives a fee for providing such individuals. (Ohio Administrative Code 4141-3-07) "Temporary services agency" means any employer which employs staff to perform services on a temporary basis for a third party and receives a fee for providing such services. (Ohio Administrative Code 4141-3-06)
Oklahoma "Lessor employing unit" means any independently established business entity which engages in the business of providing leased employees to any other employer, individual, organization, partnership, corporation or other legal entity, referred to herein as client lessee. (Oklahoma Statutes Annotated Title 40, Chapter 1, Article 1, Part 2, Section 1-209A) None.
Oregon "Worker-Leasing Company" means a person who provides workers, by contract and for a fee, as established in ORS 656.850. (Oregon Revised Statutes 436-50-005(25))

    (1) "Worker leasing company" means person who provides workers, by contract and for a fee, to work for a client but does not include a person who provides workers to a client on a temporary basis to supplement the existing work force in special situations such as employee absences, 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. (Oregon Revised Statutes 656.850)

    (2) If a person provides workers, by contract and for a fee, to work for a client and any such workers are not provided on a "temporary basis," that person will be considered a worker-leasing company.

    (3) If a person provides both leased workers and workers on a temporary basis, that person shall maintain payroll records that show specifically which workers are provided on a temporary basis. If the payroll records do not specify which workers are provided on a temporary basis, all workers are deemed to be leased workers. (Oregon Revised Statutes 436-50-420)
 (1) A person who provides a worker to work for a client will be considered to be providing the worker on a "temporary basis" only if there is a written contract which states the period to time the worker will be provided and the worker is provided under one or more of the following conditions:

    (a) to replace an absent worker who will return, such as during a maternity leave, vacation, jury duty or illness;

    (b) to fill a professional skill shortage;

    (c) to staff a seasonal workload;

    (d) to staff a special assignment or project where the worker will be terminated or assigned to another temporary project upon completion;

    (e) where student trainees are provided through a work experience program which is operated by a school district or community college, and in which the trainee is paid by the school district or community college; or

    (f) the work contract is part of the client's overall employment selection program, such as where new workers must satisfactorily pass a probationary period before being granted permanent employee status.

(Oregon Revised Statues 436-50-420)
Pennsylvania None. None.
Rhode Island A firm which has no financial interest, management rights, or control in the company to whom they supply workers. The term of employment is long term and the employees are under the control of the lessee. (Working Definition)

Any individual, firm, partnership or corporation engaged in providing workers to employer/firms under a contract or leasing arrangement...(General Laws of Rhode Island 44-30-71.4(2))		 Workers remain under the control of the temporary firm. Employment is usually short term. (Working Definition)
South Carolina An entity that enters into a contractual relationship with a client to assume the position of the employer. (UI Office Working Definition)

"Staff leasing services" means an arrangement by which employees of a licensee are assigned to work at a client company and in which employment responsibilities are shared by the licensee and the client company. The employee's assignment is intended to be of a long-term or continuing nature, rather than temporary or seasonal in nature, and a majority of the work force at a client company worksite or a specialized group within that work force consists of assigned employees of the licensee. This does not include family-related businesses or similar groups, that do not meet the requirements of item (8). Staff leasing does not include temporary employees. (South Carolina Statutes 40-68-10(8))		 An entity that provides temporary staffing needs. (Working Definition)
South Dakota None. None.
Tennessee "Employee leasing organization" means any firm which places employees of another business on its payroll and leases such employees back to the client on an ongoing basis. (TCA 62-31-102(7) - prior to January 1, 1996)

"Staff leasing arrangement" means an arrangement, under contract or otherwise, whereby:

    (i) A staff leasing company assigns employees to perform services for a client;

    (ii) The arrangement sets no restriction or limitation on the duration of employment; and

    (iii) Employer responsibilities are in fact shared by the staff leasing company and the client.

(B) For purposes of this chapter, a staff leasing arrangement does not include:

    (i) Personnel services defined under chapter 31 of this title;

    (ii) Arrangements where in a person, whose principal business activity is not entering into staff leasing arrangements, shares employees with a commonly owned company within the meaning of section 414(b) and (c) of the Internal Revenue Code of 1986, as amended and which does not hold itself out as a staff leasing company; or

    (iii) arrangements for which a person assumes full responsibility for the product or service performed by such person or his agents and retains and exercises, both legally and in fact, a complete right of direction and control over the individuals whose services are supplied under such contractual arrangements , and such person and his agents perform a specified function for the recipient which is separate (TCA 62-31-102(9)(A)) - effective January 1, 1996)

"Staff leasing company" or "leasing company" means an individual or business that, under an agreement between client company and the leasing company, and for a fee, places all or substantially all of the regular, full-time employees of the client company on the leasing company's payroll and leases them to the client company on an ongoing basis with no restriction or limitation on the duration of employment. (TCA 62-43-103(a)10) - effective January 1, 1996) 		"Temporary help services firm" means an organization that assigns its employees to perform services to others with the understanding that the temporary employee's services will be terminated at the completion of the assigned tasks or functions or time period. (TCA 62-31-102(15))
Texas An individual business entity that offers staff leasing services. Staff leasing services means an arrangement by which employees of a licensee are assigned to work at a client company in which employment responsibilities are in fact shared by the licensee and the client company, the employee's assignment is intended to be of a long-term or continuing nature, rather than temporary or seasonal in nature, and a majority of the workforce at a client company worksite or a specialized group within the workforce consists of assigned employees of the licensee. The term does not include:

    (A) a temporary help service

    (B) an independent contractor

    (C) a public company or any other person in which that public company has a direct or indirect ownership interest in excess of 33-1/3 percent, including ownership through subsidiaries and affiliates; or

    (D) a temporary common worker agency or employer as defined in Volume 15, Article 5221a-10, Vernon's Texas Civil Statutes. (Staff Leasing Services Act, Section 12 of Texas Civil Statutes Article 9104 Section 1(11))
 An arrangement by which an organization hires its own employees and assigns them to clients to support or supplement the client's workforce in special work situations such as employee absences, temporary skill shortages, seasonal workloads, or special assignments and projects. (The Staff Leasing Services Act, Section 12 of Texas Civil Statutes Article 9104 Section 1 (14))
Utah "Employee leasing company" or "leasing company" means an individual or business that, under an agreement between the client company and the leasing company, and for a fee places all or substantially all of the regular, full-time employees of the client company on the leasing company's payroll and leases them to the client company on an ongoing basis with no restriction or limitation on the duration of employment. (Utah Code 58-59-102(3)) "Temporary help company," as may be further defined by rule, means a person or entity that provides temporary employees to fill assignments with a finite ending date to another independent entity in special, unusual, seasonal, or temporary skill shortage situations. (Utah Code 58-59-102(11))
Vermont "Employee leasing company" or leasing company" means a person engaged in the

business of providing individuals to perform ongoing services for an indefinite time period for client companies pursuant to one or more employee leasing agreements executed between the leasing company and the client company. (Vermont Code 21 V.S.A.)		 <"Temporary help company" means a person who hires its own employees and provides them to another business entity as temporary full or part-time personnel to provide services for a finite period of time in special or unusual situations such as employee absences, temporary skill shortages, seasonal workloads and special work assignments and projects (Vermont Code 21 V.S.A. )
Virginia None. None.
Washington Employee leasing companies exist for the purpose of supplying employees to other businesses. They are not usually considered a temporary employment agency since they normally provide permanent employees. They may provide employee searches, interviewing, hiring and, in some cases, pay the individuals their wage from payday to payday. The leasing company simply charges the business a periodic fee (usually monthly) for their services which includes the pay for the employees. The leasing company does not usually have any investment in the client business. On the other hand, most private employment agencies charge the ultimate employer a one time fee for placing an individual, then have nothing more to do with that employee or the employer. (Employment Security Department Tax Branch Policy Manual Status Section 219) None.
West Virginia An independently established business entity that engages in the business of providing leased employees to a client-lessee. (Working Definition) An employing unit that contracts with client-lessee or customers to supply workers to perform services for the client-lessee or customer. (Working Definition)
Wisconsin "Employee service company" means a leasing company or temporary help service which contracts with clients or customers to supply individuals to performs services for the client or customer and which, both under contract and in fact:

    (a) Negotiates with clients or customers for such matters as time, place, type of work, working conditions, quality, and price of the services;

    (b) Determines assignments or reassignments of individuals to its clients or customers, even if the individuals retain the right to refuse specific assignments;

    (c) Sets rates of pay of the individuals, whether or not through negotiation;

    (d) Pays the individuals from its account or accounts; and

    (e) Hires and terminates individuals who perform services for the clients or customers. (Wisconsin State Statutes, Section 108.02 (12m))
Wyoming None. None.