Section 277-B:6 Employee Leasing Company License; Financial Assurances Required.
I. Every application for issuance or renewal of a license as an employee leasing company shall be accompanied by an audited financial statement prepared by an independent certified public accountant in accordance with generally accepted accounting principles. Such statement shall show a minimum working capital of $100,000. At the time of application for a new license, the employee leasing company shall submit its most recent audit which may not be older than 13 months. Thereafter, an employee leasing company shall file a succeeding audit, performed within 12 months before the date of application or renewal, showing a minimum working capital of $100,000. An employee leasing company with less than $100,000 in working capital at renewal shall have 180 days to eliminate the deficiency. During that 180 days the employee leasing company shall submit quarterly financial statements to the department of labor accompanied by an attestation of the chief executive officer that all wages, taxes, workers' compensation premiums, and employee benefits have been paid by the employee leasing company. As an alternative, an employee leasing company may, as approved by the commissioner, provide a surety bond, irrevocable letter of credit, or securities with a minimum market value of $100,000 to the department. For any employee leasing company whose annual financial statements do not indicate positive working capital, the amount of the bond, irrevocable letter of credit, or securities shall be $100,000 plus an amount sufficient to cover the deficit in working capital.
II. In addition to the requirement in paragraph I, the commissioner may require an employee leasing company to deposit in a depository designated by the commissioner, a bond or securities with a market value, deemed sufficient by the commissioner to assure payment of wages and benefits. The securities so deposited shall include authorization to the commissioner to sell any such securities in an amount sufficient to pay any wages, benefits or other entitlements due a leased employee, if the employee leasing company does not make such payments when due. The commissioner may require such bond or deposit only if the commissioner finds, although not limited to such instances, that the leasing company has had its license suspended, denied, or limited in any other jurisdiction; or that there have been instances where the leasing company has not paid employees' wages or benefits when due, or failed to make timely payment of any federal or state payroll taxes or unemployment compensation contributions when due. Any bond or securities deposited under this paragraph shall not be included for the purpose of the calculation of working capital required by paragraph I.
III. An employee leasing company shall submit to the commissioner, within 60 days after the end of each calendar quarter, a certification by an independent certified public accountant that for such quarter all applicable federal and state payroll taxes have been paid on a timely basis.
IV. The department shall to the extent practical permit by rule the acceptance of electronic filings in conformance with RSA 294-E. Such rule may provide for the acceptance of electronic fillings and other assurance by an independent and qualified assurance organization approved by the commissioner that provides satisfactory assurance of compliance acceptable to the department of labor consistent with or instead of the requirements of this chapter or the rules adopted under it. Such rule shall permit an employee leasing company to authorize an assurance organization approved by the commissioner to act on the employee leasing company's behalf in complying with the licensure requirements of this chapter, including the electronic filings of information and payment of fees. Use of such an approved assurance organization is optional. Nothing in this section shall limit the department's authority to license or terminate licensure of an employee leasing company or to investigate or enforce any provision of this chapter.
Source. 1994, 405:1. 1996, 243:3, eff. Aug. 9, 1996. 2009, 308:5, 6, eff. Sept. 29, 2009.