often use workers other than their own employees. Common practices involve using leased workers
or temporary staffing. Contractors have
different obligations depending on who they hire.
What is worker leasing?
leasing is an alternative for contractors (and other employers) to manage the
administrative functions of their workforce. Contractors may enter into an arrangement with
a worker leasing company that hires workers, perhaps even the same workers the contractor
already had, and leases the workers to the contractor under a contract for a
fee. Worker leasing companies take on the responsibility of payroll, employment
taxes and assessments. They may also
offer workers’ compensation insurance, retirement options and medical benefits.
What is the difference
between worker leasing and temporary staffing?
Leased workers are
provided by a worker leasing company.
A worker leasing company is licensed by the Department of Consumer and
Business Services (DCBS). It provides
non-temporary workers under a contract and for a fee.
In contrast, a temporary
service provider provides workers “on a temporary basis.” A temporary service provider is not licensed
are for special situations. These are
- Employee absences.
- Employee leaves.
- Professional skill
- Seasonal workloads.
- Special assignments
- The positions
terminate when the special situation ends.
requires written documentation. It must
do the following:
the duration of the work.
that the work is for the special situation.
documentation, all workers are presumed to be leased workers.
Who is responsible for providing workers’ compensation?
Worker leasing companies often provides workers’ compensation for
both the leased workers and the contractor’s employees. Alternatively, the contractor may provide
coverage for both. In either case, one
policy must cover all workers.
A contractor using temporary
staffing may have its own workers’ compensation policy to cover its regular employees.
The temporary staffing provider usually
provides workers’ compensation for the temporary workers.
a contractor with leased workers exempt or non-exempt?
The Construction Contractors Board
(CCB) classifies contractors as “exempt” or “nonexempt.” Contractors that use leased workers are
nonexempt. Only nonexempt contractors
may hire or lease workers.
information must a contractor with leased workers supply for its license?
Ordinarily, nonexempt contractors must
supply the following information when applying for a license:
1. Workers’ compensation insurance carrier name and policy
number or WCD compliance number (if self-insured);
2. Oregon Employment Department and Oregon Department of
Revenue combined business identification number (BIN); and
3. Internal Revenue Service employer number or federal
identification number (EIN).
Nonexempt contractors that use leased
workers (and have no other reporting obligations) do not need to supply the BIN
or EIN. The worker leasing company will
handle the payroll reporting for the workers.
The contractor may supply its own worker’s compensation insurance policy
number or that of the leasing company, depending on which is providing
How do I change my license
the Request to Change Independent Contractor
License Class form. There is
more information about workers’ compensation policies, worker leasing and
temporary staffing, contact the Workers’ Compensation Division at 503-947-7815.
The division maintains a list of
actively licensed worker leasing companies on its website.