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Temp. Agencies Required to Pay Workers Comp02-01-03 | News
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SACRAMENTO, Calif. ?EUR??,,????'??? California Governor Gray Davis recently signed a measure that requires temporary employment agencies and similar entities to pay workers?EUR??,,????'??? compensation premiums based on their client?EUR??,,????'???s experience modification rating when the client is a licensed contractor and the temporary employees are doing work for which a license is required. Effective on January 1, the measure, AB 2861, also requires contractors who use temporary workers to notify the temporary agency if any of the workers are being used on a public works project or reassigned to a different work classification. In addition, agencies must now report to their insurance companies payroll information as well as the ?EUR??,,????'??ex-mod?EUR??,,????'?? factor for each of their contractor clients. AB 2861 allows the agencies to pass through to their clients any additional costs incurred as a result of it, including the costs of higher workers?EUR??,,????'??? compensation premiums. Authored by Kevin Shelly (D-San Francisco), the new law is intended to encourage contractors who use temporary employment agencies to be careful about job site safety. The California Landscape Contractors Association vigorously opposed an earlier version of AB 2816 that would have required landscape contractors to secure payment of workers?EUR??,,????'??? compensation for these workers. The association took a neutral position after the bill was amended to address this concern.
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