Oregon Revised Statutes Chapter 656 § 656.850 — License; compliance with workers’ compensation and safety laws

License; compliance with workers’ compensation and safety laws. (1) As used in this section and ORS 656.018, 656.403, 656.855 and 737.270: (a) “Worker leasing company” means a person who provides workers, by contract and for a fee, to work for a client but does not include a person who provides workers to a client on a temporary basis. (b) “Temporary basis” means providing workers to a client for special situations such as to cover employee absences, employee leaves, professional skill shortages, seasonal workloads and special assignments and projects with the expectation that the position or positions will be terminated upon completion of the special situation. Workers also are provided on a temporary basis if they are provided as probationary new hires with a reasonable expectation of transitioning to permanent employment with the client and the client uses a preestablished probationary period in its overall employment selection program. (c) “Temporary service provider” means a person who provides workers, by contract and for a fee, to a client on a temporary basis. (2) No person shall perform services as a worker leasing company in this state without first having obtained a license therefor from the Director of the Department of Consumer and Business Services. No person required by this section to obtain a license shall fail to comply with this section or ORS 656.855, or any rule adopted pursuant thereto. (3) When a worker leasing company provides workers to a client, the worker leasing company shall satisfy the requirements of ORS 656.017 and 656.407 and provide workers’ compensation coverage for those workers and any subject workers employed by the client unless during the term of the lease arrangement the client has proof of coverage on file with the director that extends coverage to subject workers employed by the client and any workers leased by the client. If the client allows the coverage to expire and continues to employ subject workers or has leased workers, the client shall be considered a noncomplying employer unless the worker leasing company has complied with subsection (5) of this section. (4) When a worker leasing company provides workers for a client, the worker leasing company shall assure that the client provides adequate training, supervision and instruction for those workers to meet the requirements of ORS chapter 654. (5) When a worker leasing company provides subject workers to work for a client and also provides workers’ compensation coverage for those workers, the worker leasing company shall notify the director in writing. The notification shall be given in such manner as the director may prescribe. A worker leasing company may terminate its obligation to provide workers’ compensation coverage for workers provided to a client by giving to the client and the director written notice of the termination. A notice of termination shall state the effective date and hour of the termination, but the termination shall be effective not less than 30 days after the notice is received by the director. Notice to the client under this section shall be given by mail, addressed to the client at the client’s last-known address. If the client is a partnership, notice may be given to any of the partners. If the client is a corporation, notice may be given to any agent or officer of the corporation upon whom legal process may be served. [1993 c.628 §2; 1997 c.491 §4; 2007 c.241 §20] Note: The amendments to 656.850 by section 3, chapter 78, Oregon Laws 2025, become operative July 1, 2027. See section 23, chapter 78, Oregon Laws 2025. The text that is operative on and after July 1, 2027, is set forth for the user’s convenience. 656.850. (1)(a) A person may not provide services as a professional employer organization (PEO) in this state without first having obtained a license from the Director of the Department of Consumer and Business Services. (b) No person required to obtain a license under this section shall fail to comply with this section or ORS 656.855 or any rule adopted pursuant to such sections. (2)(a) When a PEO enters into a PEO relationship, the PEO shall satisfy the requirements of ORS