Legal Question in Workers Comp in California

Re: Worker's Compensation insurance policy

There is not an exact definition of the terms. One looks at several different factors and then makes a judgment call. A payroll company does not hire or fire the people in question, tell them what hours to work, control how they do their work, etc. It clearly is not the employer. With the exception of a small business wanting to flatten the fluctations in it rates by being counted as part of a much larger labor pool, why would you even want the the payroll service to be the "employer" as it is going to charge you for the extra work involved, makes it more difficult to deal with your own employees, reduces your control over your own personnel, etc. I know some try to get business by claiming they can put your employees on as theirs and reduce the WC costs; ask them if they ever have paid a claim, unemployment benefits, etc. Small similar business can join a pool or assoication for the purpose of reducing the premiums.