New Jersey § 34:8-68

§ 34:8-68.

a. Every employee leasing agreement shall provide that the employee leasing company: (1) Reserves a right of direction and control over each covered employee assigned

to the client company's location. However, a client company may retain sufficient direction and control over the covered

employee as is necessary to conduct the client company's business and without which

the client company would be unable to conduct its business, discharge any fiduciary

responsibility that it may have, or comply with any applicable licensure, regulatory

or statutory requirement of the client company; (2) Assumes responsibility for the payment of wages to each covered employee without

regard to payments by the client company to the employee leasing company, except that

the provisions of this paragraph shall not affect the client company's obligations

with respect to the payment of wages to covered employees; (3) Assumes responsibility for the payment of payroll taxes and collection of taxes

from payroll on each covered employee; (4) Retains authority to hire, terminate, discipline, and reassign each covered employee. However, no covered employee shall be reassigned to another client company without

that covered employee's consent and the client company may have the right to accept

or cancel the assignment of any covered employee; (5) Has given written notice of the relationship between the employee leasing company

and the client company to each covered employee it assigns to perform services at

the client company's work site; (6) Shall, except for newly established business entities, hire its initial employee

complement from among employees of the client company at the time of execution of

the employee leasing agreement at comparable terms and conditions of employment as

are in existence at the client company at the time of execution of the employee leasing

agreement and as designated by the client company. Throughout the term of the employee leasing agreement the covered employees shall

be considered employees of the employee leasing company and the client company and

upon the termination of the employee leasing agreement, the covered employees shall

be considered employees of the client company; (7) Continue to honor and abide by existing collective bargaining agreements applicable

to covered employees. The client company shall also continue to honor and abide by all collective bargaining

agreements applicable to covered employees. Every employee leasing company which enters into a contract with a client company,

which has a collective bargaining representative for the covered employees, shall

require that client company to enter into an agreement with the employee leasing company

containing the following language: “The client company shall continue to honor and abide by the terms of any applicable

collective bargaining agreements, and upon expiration thereof, any obligations of

the client company to bargain in good faith in connection with such collective bargaining

agreements shall not be affected in any manner by the employee leasing agreement.” (8) Shall provide workers' compensation insurance for their covered employees , unless the client company, in agreement with the employee leasing company elects

to assume the responsibility of providing the workers' compensation insurance coverage

for those employees in an arrangement with an employee leasing company, and the employee

leasing company provides notice of the election and proof of coverage to the department

within 30 days of the election or once forms or procedures are decided by the department . A client company that assumes the responsibility to provide workers compensation insurance

required by an employee leasing agreement, shall provide a copy of the agreement to

the insurance carrier licensed in the State of New Jersey that issues the policy for

the covered employees prior to the issuance of the policy or upon entering an employee

leasing agreement as appropriate. The agreement shall contain a legal mailing address for the employee leasing company

and the client company shall be obligated to update that address should it change

over the policy period. In the event that a policy issued to a client company is cancelled pursuant to R.S.34:15-81 , the insurance carrier licensed in the State of New Jersey that issues the policy

shall provide the employee leasing company copies of all notices required to be issued

to the client company pursuant to R.S.34:15-81 with at least 10 days' notice by regular mail at the address set forth in the employee

leasing agreement, as updated. Notwithstanding the provisions of this paragraph (8), if the client company, having

elected to assume the responsibility of providing the workers' compensation insurance

coverage for covered employees in an arrangement with an employee leasing company,

fails to provide workers' compensation insurance coverage as required by law during

the period of the agreement, then the employee leasing company shall provide workers'

compensation insurance for the covered employees under the employee leasing agreement. b. Every employee leasing agreement shall allocate responsibility between the employee leasing company and the client company regarding the right of direction and control over management of safety, risk and hazard control

at the work site or sites affecting each covered employee including: (1) Responsibility for performing safety inspections of client company equipment and

premises; (2) Responsibility for the promulgation and administration of employment and safety

policies; and (3) Responsibility for the management of workers' compensation claims, the filings

thereof, and procedures related thereto. c. Nothing in this section or any other section of P.L.2001, c. 260 ( C.34:8-67 et seq. ) shall alter the rights or obligations of client companies, employee leasing companies

or covered employees under the National Labor Relations Act, 29 U.S.C. s.151 et seq. d. (1) Nothing in P.L.2001, c. 260 ( C.34:8-67 et seq. ) or in any employee leasing agreement shall diminish, abolish or remove any obligations

of covered employees to a client company or any obligations of any client company

to a covered employee existing prior to the effective date of an employee leasing

agreement, or create any new or additional enforceable right of a covered employee

against an employee leasing company that is not specifically provided by the appropriate

employee leasing agreement or P.L.2001, c. 260 ( C.34:8-67 et seq. ). (2) Nothing in P.L.2001, c. 260 ( C.34:8-67 et seq. ) or in any employee leasing agreement shall affect, modify, or amend any contractual

relationship or restrictive covenant between a covered employee and any client company

in effect at the time an employee leasing agreement becomes effective; nor shall

it prohibit or amend any contractual relationship or restrictive covenant that is

entered into subsequently between a client company and a covered employee. An employee leasing company shall have no responsibility or liability in connection

with, or arising out of, any such existing or new contractual relationship or restrictive

covenant unless the employee leasing company has specifically agreed otherwise in

writing. e. (1) Nothing in P.L.2001, c. 260 ( C.34:8-67 et seq. ) or in any employee leasing agreement shall affect, modify or amend any state or

local registration or certification requirement applicable to any client company or

covered employee. (2) A covered employee who is required to be licensed, registered, or certified pursuant

to any State law or regulation shall be considered solely an employee of the client

company for purposes of that license, registration, or certification requirement. (3) An employee leasing company shall not be deemed to engage in any occupation, trade,

profession, or other activity that is subject to licensing, registration, or certification

requirements, or is otherwise regulated by a governmental entity, solely by entering

into an employee leasing agreement with a client company who is subject to those requirements

or regulations. (4) A client company shall have the sole right of direction and control of the professional

or licensed activities of covered employees and the client company's business. Those covered employees and client companies shall remain subject to regulation

by the regulatory or governmental entity responsible for licensing, registration,

or certification of those covered employees or client companies. f. A client company's certification as a small, minority-owned, disadvantaged, woman-owned

business enterprise or an historically underutilized business for the purposes of

any bid, contract, purchase order, or agreement entered into with the State or a political

subdivision of the State, shall not be affected because the client company has entered

into an employee leasing agreement with an employee leasing company. g. Any benefit that a client company is required to provide to covered employees that

is provided to covered employees by an employee leasing company through an employee

leasing agreement shall be credited against the client company's obligation to fulfill

the requirement.