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House approves bill to register employee-leasing companies, bar new self‑funded health plans
Summary
The Utah House passed substitute House Bill 426 to require registration of employee leasing companies, set preregistration requirements, and prohibit new leasing firms from offering self‑funded health plans; sponsors argued the measure protects employees after several high‑profile failures.
Representative David S. Osler introduced substitute House Bill 426, telling the House the bill would require employee‑leasing companies to register with the state, provide detailed application materials, and meet insurance and employment tax obligations before operating in Utah. "A registered employee leasing company is considered the employer of its leased employees for purposes of sponsoring and maintaining any benefit plans," the sponsor said in explaining key provisions.
The bill responds to reports that some undercapitalized leasing firms have failed, leaving employees unpaid and without promised coverage. Representative…
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