[CLC-Discussion] Employee Leasing Worker's Comp. Coverage

Rafael A. Perez rperez at mcper.com
Tue Mar 11 14:18:37 PDT 2014


Employee leasing companies only cover those employees that are on the weekly payroll reports.  Undocumented employees, day laborers and uninsured sub-contractors are specifically excluded from the coverage.  There are several ways to avoid this uninsured exposure:


  1.  Have the employee leasing company "carve out" the workers compensation exposure, then obtain a standard workers compensation policy in the open marketplace.  The standalone workers compensation polices can be purchased on a reporting form basis and are usually many times less expensive than what the employee leasing company is charging;
  2.  Have the employee leasing company endorse a "minimum earned workers compensation policy."  Most employee leasing companies have this capability.   However, the minimum premium is usually around $10,000; or
  3.  Have the GC refrain from day labor and enforce a stringent workers compensation certificate program to mitigate the uninsured exposure (most difficult option).



Rafael A. Pérez | Attorney
Board Certified Construction Attorney

[cid:image003.jpg at 01CF3D4D.798AF640]<http://>

806 S Douglas Rd, STE 625 | Coral Gables, FL 33134
T 305.442.2214 | F 305.442.2291
www.mcper.com<http://www.mcper.com/> | rperez at mcper.com<mailto:rperez at mcper.com>

CONFIDENTIALITY NOTE: The information contained in this transmission may be privileged and confidential information, and is intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this transmission in error, please immediately reply to the sender that you have received this communication in error and then delete it. Thank you.

From: clc-discussion-bounces at lists.flabarrpptl.org [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Sakwa, Stuart H.
Sent: Tuesday, March 11, 2014 11:09 AM
To: clc-discussion at lists.flabarrpptl.org
Subject: [CLC-Discussion] Employee Leasing Worker's Comp. Coverage

I have a General Contractor client that is having repeated problems with Subcontractors who provide Worker's Comp. Cert. of Ins. from an Employee Leasing company that specifies some individuals who are covered under the WC policy, but then the Subcontractor sends out other employees who are not on the list.   The problem is becoming more prevalent as more Subcontractors use these leasing companies.

Any suggestions on how the General Contractor can address the issue on an global basis, rather than having his superintendents do daily checks of the subcontractor work force.

Stuart H Sakwa
Attorney at Law
Board Certified in Construction Law

ARNSTEIN & LEHR LLP
515 North Flagler Drive
Sixth Floor
West Palm Beach, Florida 33401-4323
Phone: 561.650.8484 | Fax: 561.802.3082
Mobile: 954.261.9598
shsakwa at arnstein.com<mailto:shsakwa at arnstein.com>

[Arnstein.com]<http://www.arnstein.com/> [PG Contstruction] <http://legalnews.arnstein.com/construction/>
Serving clients for more than 120 years
Offices in Illinois, Florida, and Wisconsin

This electronic mail transmission may contain confidential or privileged information.

If you believe that you have received this message in error, please notify

the sender by reply transmission and delete the message without copying or disclosing it.



Pursuant to Internal Revenue Service guidance, be advised that any federal tax

advice contained in this written or electronic communication, including any

attachments or enclosures, is not intended or written to be used and it cannot

be used by any person or entity for the purpose of (i) avoiding any tax penalties

that may be imposed by the Internal Revenue Service or any other U.S. Federal

taxing authority or agency or (ii) promoting, marketing or recommending

to another party any transaction or matter addressed herein.


-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/clc-discussion/attachments/20140311/05abef52/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 4652 bytes
Desc: image003.jpg
URL: <http://mailman.fsr.com/pipermail/clc-discussion/attachments/20140311/05abef52/image003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 23125 bytes
Desc: image004.jpg
URL: <http://mailman.fsr.com/pipermail/clc-discussion/attachments/20140311/05abef52/image004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 2419 bytes
Desc: image005.jpg
URL: <http://mailman.fsr.com/pipermail/clc-discussion/attachments/20140311/05abef52/image005.jpg>


More information about the CLC-Discussion mailing list