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DEPARTMENT OF LABOR AND ECONOMIC GROWTH WORKERS’ COMPENSATION AGENCY
GENERAL RULES
Filed with the Secretary of State on March 2, 2006
These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.
(By authority conferred on the director of the workers’ compensation agency by section 205 of 1969 PA 317, section 48 of 1969 PA 306, and Executive Reorganization Order Nos. 1996-2, 1999-3, 2002-1, and
2003-1, MCL 418.205, 24.248, 445.2001, 418.3, 445.2004, and 445.2011)
Rule 408.43t of the Administrative Code is added as follows: R 408.43t Group self-insurance; employee leasing.
Rule 43t. On or after the effective date of this rule, an employee leasing company approved for membership in a group self-insurance fund pursuant to MCL 418.611(2) of the workers’ compensation act shall qualify as being in the same industry of the group fund if the employee leasing company meets all of the following conditions:
(a) The individual or individuals or entity or entities owning the entity or entities where the employees are or will be placed shall have a combined majority ownership interest of at least 51% in the prospective member leasing company.
(b) The leasing company shall only lease employees to entities that qualify for and participate in the group to which the leasing company seeks admission.
(c) The application submitted for membership by the employee leasing company shall clearly state on the first page of the application that the entity is an employee leasing company and shall name all the owners of the leasing company and the percentage of ownership of each owner. Any change in the percentage of ownership shall be reported to the group fund and the agency within 10 days of the ownership change. If the leasing company no longer meets the requirements of subdivision (a) or (b) of this rule after the change in ownership, then the leasing company shall be subject to termination pursuant to R 408.43g(4).
(d) The application shall identify and name the entity or entities with which employees are placed or to be placed, the name of each individual or entity that owns the entity with which employees are or will be placed, and the percentage or ownership interest for each.
(e) If the leasing company leases employees to any entity which is not a member of the group fund of which the leasing company is a member, or the leasing company fails to report any changes in ownership to the group fund and the agency within 10 days of the change in ownership, then the leasing company shall be terminated from participation in the group fund, pursuant to R 408.43g(4).
