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Committee advances bill allowing leasing companies or clients to elect workers’ compensation coverage; minor‑league wage carve‑out included
Summary
The House Labor committee moved HB 655 out of committee after DOL testimony clarified the bill lets leasing companies or client employers elect who carries workers‑comp coverage, imposes reporting and license penalties, and includes a separate exemption for minor‑league baseball players covered by a collective bargaining agreement.
A House Labor, Industrial and Rehabilitative Services Committee voted in executive session April 21 to move House Bill 655 out of committee after hearing detailed testimony from the New Hampshire Department of Labor.
The bill allows a person contracting with a professional employer organization (PEO) or leasing company to elect whether the leasing company or the client company will provide workers’ compensation insurance for leased employees. "Assuming that everybody is complying with the requirements ... we would not anticipate there being disruption or lack or a gap in coverage," Danielle Albert, Deputy Commissioner of the New Hampshire Department of Labor, told lawmakers.
Why it matters: The measure formalizes a contract election that already occurs in the PEO business model and adds reporting and compliance steps the department can use to follow up when questions arise. Albert said the statutory framework would apply monetary penalties (she cited up to $2,500 and an enhanced penalty up to $100 per day per affected employee) and injunctive relief through superior court, and that leasing companies must still meet licensure and initial‑coverage requirements.
Committee concerns and history: Several lawmakers urged caution because of a 1994 lease‑company bankruptcy that stranded workers, prompting earlier legislation. Representative McKenzie said the 1990s episode led to RSA changes and asked whether gaps remain; Albert said current law (she referenced RSA 281‑A:73 regarding employee claims where an employer lacks coverage) already allows employees to pursue awards that can be filed in superior court against an employer who failed to obtain coverage.
Minor‑league baseball exemption: The bill also contains an unrelated provision carving out minor‑league baseball players who are paid under collective bargaining agreements from the state's minimum‑wage rules in limited situations. Supporters said the change mirrors arrangements in other states where teams exist and that players and the union asked for the protection to avoid future litigation.
What the committee did: In executive session Representative Seaverth moved to "move out to pass" HB 655; the motion was recorded and the item was recommended by consent to advance out of committee.
What's next: The committee reported the bill out of the committee packet; further floor action and any amendments would be decided by the full House.
