Addendum to all California Client Service Agreements

Client agrees to cooperate with Landrum in completing anti-harassment training, to the extent required by California law, for all Covered Employee supervisors, either live or online, every two (2) years and within six (6) months of a Covered Employee being hired as a supervisor or promoted to supervisor.  Client will not engage in operating a California garment manufacturing operation or a California car wash operation without Landrum’s written consent.  Client assumes all civil legal responsibility and civil liability under California Labor Code Section 2810.3.  Client is responsible for implementing and maintaining an Illness Injury and Prevention Program and for otherwise complying with all California mandated health and safety requirements, with or without consulting assistance from Landrum.  Client is responsible for complying with posting and notice requirements under California law, including but not limited to the Wage Theft Protection Act notices, EDD mandated unemployment and disability insurance notices, expense reimbursement, and new hire workers’ compensation insurance related notices.  Client is responsible for ensuring compliance with California meal period, rest break, heat-related break, seating, split shift, and minimum reporting time pay requirements, with or without consulting assistance from Landrum. Client will provide paid sick leave to Covered Employees to the full extent required by California law, with or without consulting assistance from PEO.   Client is solely responsible for all costs associated with “first aid” claims as defined by California law.  Client agrees that Landrum is not a joint employer for purposes of liability pursuant to the California Wage Orders, Labor Code, and Government Code.

Addendum to all Connecticut Client Service Agreements

In keeping with the requirements of Conn. Gen. Stat. §12-407(a)(37)(C), this Agreement is amended to state that in compliance with Conn. Gen. Stat. §12-407(a)(37)(C), at least 75% of all persons employed by Client are leased through Landrum Professional, a Professional Employer Organization.

Client agrees to notify Landrum in writing if it hires any person who is not also a Landrum employee or if any of its current employees’ status as a leased employee changes for any reason.

Pursuant to Conn. Gen. Stat. Ann. SS 56a-31-221e, to the extent that any portion of the Client Service Agreement provides otherwise, those terms shall be amended as follows:

1. If Landrum has assumed responsibility to make payment for employee benefits for covered employees, Landrum acknowledges its responsibility to do so.
2. Client shall be solely responsible for the quality, adequacy or safety of the goods or services produced or sold in Client’s business;
3. Client shall be solely responsible for directing, supervising, training and controlling the work of covered employees with respect to the business activities of Client and solely responsible for the Acts, errors or omissions of covered employees with regard to such activities;
4. Client shall not be liable for the acts, errors or omissions of Landrum or any covered employee of Client when such covered employee is acting at the express direction and control of Landrum Professional;
5. Landrum shall not be liable for the acts, errors or omissions of Client or any covered employee of Client when such covered employee is acting under the express direction and control of Client;
6. A covered employee is not, solely as the result of being a covered employee of Landrum, an employee of Landrum for purposes of general liability insurance, fidelity bonds, surety bonds, employers’ liability which is not covered by workers’ compensation and employers’ liability insurance carried by Landrum unless the covered employee is included by specific reference in the Client Service Agreement and any employment contract, insurance contract or bond.

Addendum to all Michigan Client Service Agreements

Pursuant to the Michigan Professional Employer Organization Act, section 338.3737, Landrum recognizes that it is responsible to pay wages to covered employees; to withhold, collect, report and remit payroll-related and unemployment taxes; and, to the extent Landrum has assumed responsibility in this Agreement, to make payments for employee benefits for covered employees.  Wages do not include any obligation between Client and a covered employee for payments beyond, or in addition to, the covered employee’s salary, draw, or regular rate of pay, including bonuses, commissions, severance pay, deferred compensation, profit sharing, or vacation, sick, or other paid time off pay, unless Landrum has expressly agreed to assume liability for those payments in this Agreement.

Landrum may hire, discipline, and terminate an employee, as necessary to fulfill its responsibilities under the Michigan PEO Act and this Agreement. Client may also hire, discipline, and terminate a covered employee.

Landrum and the Client have the responsibility to comply with the worker’s disability compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941.

Addendum to all Montana Client Service Agreements

Landrum Professional assumes responsibility for the payment of workers’ compensation premiums, payroll-related taxes, and employee benefits from its own accounts without regard to payments by Client. With respect to a jobsite employee supplied to Client by Landrum Professional, Client shares joint and several liability for any wages, workers’ compensation premiums, and payroll-related taxes and for any benefits left unpaid by Landrum Professional and, in the event Landrum Professional’s PEO license is suspended or revoked, this liability is retroactive to Client’s entering into a contract with Landrum Professional. Client acknowledges and affirms Client is responsible for compliance with the Montana Safety Culture Act, Title 39, chapter 71, part 15.

Addendum to all New Hampshire Client Service Agreements

In addition to Landrum Professional Employer Services, Inc.’s duties under this Client Service Agreement, RSA 277-B:9, III requires employee leasing companies to notify the commissioner of employment security and the commissioner of the Department of Labor in writing of all new and terminated Client companies within 10 days of engagement or termination.  Accordingly, Landrum Professional amends its Client Service Agreement to reflect that it assumes this duty.

Additionally, in compliance with RSA 277-B: 9, VI, Landrum Professional advises its Clients that it is the rated employer for unemployment compensation purposes as of the contract date.  All payments made to the Department of Employment Security are made on Landrum’s account, its rate, and the new wage base at the time of engagement.

Upon termination of the employee leasing arrangement, Client will return to its previous rate and account balance, if allowable under applicable law. Client assumes a new wage base at the time it enters into an employee leasing arrangement with the leasing company.

Addendum to all New Jersey Client Service Agreements

Per NJ Law 34:8-68(2.)(a.)(2), the following replaces Section 2(b), above:  Landrum Professional assumes responsibility for the payment of wages to jobsite employees and the payment of payroll taxes and collection of taxes from payroll on jobsite employees without regard to payments by Client, except that the provisions of this paragraph shall not affect Client’s obligations with respect to the payment of wages to covered employees.  Landrum Professional shall not be responsible for collection or payment of any tax on services (e.g., sales or service tax) provided by jobsite employees. As used in this section, the term “wages” does not include any obligation between a Client and a jobsite employee for payments beyond or in addition to the Covered Employee’s salary, draw or regular rate of pay, such as bonuses, commissions, severance pay, deferred compensation, profit sharing or vacation, sick or other paid time off pay, unless Landrum Professional has expressly agreed with Client to make such payments at the time they are to be paid and Client has paid Landrum Professional in advance for said payments.  In the event of payment default by Client, “wages” shall be defined as the minimum wage required by federal law for hours worked. 

Per NJ Law 34:8-68(2.)(a.)(4), the following replaces Section 2(c), above:  In accordance with New Jersey law, Landrum Professional retains a right to hire, terminate, discipline, and reassign jobsite employees assigned to Client, except that no covered employee shall be reassigned to another Client company without that covered employee’s consent.  Client has the right to accept or cancel the assignment of any covered employee. Client maintains primary responsibility for interviewing, hiring, assigning and setting salary and benefits for jobsite employees. Client retains actual control over the day-to-day job duties of jobsite employees, as well as actual control over all portions of the jobsite and job responsibilities and expressly absolves Landrum Professional from any liability for the acts or omissions of said jobsite employees.

Per NJ Law 34:8-68(2.)(a.)(6), Landrum agrees that it shall, except for newly established business entities, hire its initial employee complement from among employees of Client at the time of execution of the employee leasing arrangement at comparable terms and conditions of employment as are in existence at Client at the time of execution of the employee leasing agreement and as designated by Client.  Throughout the term of the employee leasing agreement the covered employees shall be considered employees of the employee leasing company and Client, and upon the termination of the employee leasing arrangement, the covered employees shall be considered employees of Client.

Per NJ Law 34:8-68(2.)(a.)(7), Landrum and Client shall continue to honor and abide by any existing collective bargaining agreements applicable to covered employees.  If Client has or obtains a collective bargaining agreement, Client shall tell Landrum immediately so it include additional language required by this section.

Per NJ Law 34:8-68(2.)(a.)(7), Landrum shall provide workers’ compensation insurance for its covered employees.

Per NJ Law 34:8-68(2.)(a.)(8)(b) Landrum and Client shall each retain a right of direction and control over management of safety, risk and hazard control at the work site or sites affecting each covered employee including:

1. Responsibility for performing safety inspections of Client company equipment and premises;
2. Responsibility for the promulgation and administration of employment and safety policies; and
3. Responsibility for the management of workers’ compensation claims, the filings thereof, and procedures related thereto.

Per NJ Law 34: 8-68.1,

Except to the extent otherwise expessly herein, the Client shall be solely responsible for the quality, adequacy or safety of the goods or services produced or sold in Client’s business, for directing, supervising, training and controlling the work of the covered employees with respect to the business activities of Client, and for the acts, errors or omissions of covered employees with regard to those activities.

1. Except to the extent otherwise expressly provided herein, Client shall not be liable for the acts, errors or omissions of Landrum, or of any covered employee when the covered employee is acting under the express direction and control of Landrum, and Landrum shall not be liable for the acts, errors, or omissions of the Client or of any covered employee when the covered employee is acting under the express direction and control of Client.
2. Except to the extent otherwise expressly provided herein, or other employment contract, insurance contract or bond, a covered employee shall not be considered, solely as the result of being a covered employee, an employee of the employee leasing company for purposes of general liability insurance, fidelity bonds, surety bonds, employer’s liability which his not covered by workers’ compensation, or other liability insurance carried by the employee leasing company.

Addendum to all New York Client Service Agreements

In addition to Landrum Professional Employer Services, Inc.’s duties under this Client Service Agreement, Landrum agrees to co-employ all or a majority of the employees providing services for its Clients In New York.  Landrum also agrees to assume responsibility for the payment of wages, collection, reporting, and remittance of employment-related taxes of its worksite employees from its own accounts.

Section 2(b) is replaced in its entirety by the following:  Landrum Professional assumes responsibility for the payment of wages, at the agreed upon regular rate, to jobsite employees for all hours worked and the payment of payroll taxes and collection of taxes from payroll on jobsite employees, without regard to payments by Client.  Landrum Professional shall not be responsible for collection or payment of any tax on services, (e.g., sales or service tax) provided by jobsite employees. As used in this section, the term “wages” does not include any obligation between a Client and a jobsite employee for payments beyond or in addition to the Covered Employee’s salary, draw or regular rate of pay, such as bonuses, commissions, severance pay, deferred compensation, profit sharing or vacation, sick or other paid time off pay, unless Landrum Professional has expressly agreed with Client to make such payments at the time they are to be paid and Client has paid Landrum Professional in advance for said payments.

Addendum to all North Dakota Client Service Agreements

In addition to Landrum’s duties under this Client Service Agreement, Landrum shall withhold, collect, report, and remit payroll and unemployment related taxes on wages paid to covered employees by Landrum.  The Client shall accurately report all wages of a covered employee to Landrum.  Landrum shall make payments for employee benefits for covered employees to the extent that Landrum has assumed responsibility in this Agreement.

Landrum has the right to hire, discipline, and terminate a covered employee as may be necessary to fulfill Landrum’s responsibility under the PEO Act, N.D. Cent. Code ss43-55-06(2) and this Agreement.  The Client has the right to hire, discipline and terminate a covered employee.

Addendum to all Ohio Client Service Agreements

In addition to Landrum’s duties under this Client Service Agreement, Landrum:

1. Assumes responsibility for payment of wages, related taxes and workers’ compensation premiums for shared employees as established within the PEO agreement. The responsibility of making the payment is not contingent on receipt of payment from Client employer;
2. Complies with applicable state laws regarding workers’ compensation insurance coverage;
3. Maintains workers’ compensation coverage, pay all workers’ compensation premiums and manage all workers’ compensation claims, filings, and related procedures associated with a shared employee in compliance with Ohio law, except that when shared employees include family farm officers, ordained ministers, or corporate officers of the Client employer, payroll reports shall include the entire amount of payroll associated with those persons;
4. Provides written notice to each shared employee it assigns to perform services to a Client employer of the relationship between and the responsibilities of the PEO and the Client employer;
5. Maintains complete records separately listing the manual classifications of each Client employer and the payroll reported to each manual classification for each Client employer for each payroll reporting period during the time period covered in the PEO agreement;
6. Maintains a record of workers’ compensation claims for each Client employer and employment-related records for each shared employee; and
7. Within 14 days after receiving notice from the Bureau of Workers’ Compensation that a refund or rebate will be applied to workers’ compensation premiums, provides a copy of that notice to any Client employer to whom that notice is relevant.

Additionally, Landrum maintains a right of direction and control over each shared employee assigned to a Client employer’s location. However, Client employers may retain sufficient direction and control over a shared employee as is necessary to conduct the Client employer’s business and to discharge any fiduciary responsibility that it may have, or to comply with any applicable licensure, regulatory, or statutory requirement of the Client employer.

Addendum to all Oklahoma Client Service Agreements

Pursuant to Okla. Stat. Ann. Title 40 SS600.7(c), to the extent that any portion of the Client Service Agreement provides otherwise, those terms shall be amended as follows:

Landrum reserves a right of direction and control over the covered employees but that the Client may retain the right to exercise such direction and control over covered employees as is necessary to conduct the Client’s business, to discharge any fiduciary responsibility which it may have, or to comply with any applicable licensure requirements;

Landrum is responsible to pay wages and salaries to covered employees; to withhold, collect, report, and remit payroll-related and unemployment taxes; and, to the extent Landrum has assumed responsibility in the professional employer agreement, to make payments for employee benefits for covered employees;

Both Landrum and the Client shall retain authority to hire, terminate, and discipline the covered employees; and

The responsibility to obtain workers’ compensation coverage for covered employees, from a carrier licensed to do business in this state and otherwise in compliance with all applicable requirements, shall be specifically allocated to either the Client or Landrum. If such responsibility is allocated to Landrum under any such agreement, such agreement shall require that Landrum maintain and provide to the Client, at the termination of the agreement if requested by the Client, records regarding the premium and loss experience related to workers’ compensation insurance provided to covered employees pursuant to such agreement.

Addendum to all South Carolina Client Service Agreements

In Section 2(b), the last sentence, “In the event of payment default by Client, “wages” shall be defined as the minimum wage required by federal law for hours worked” does NOT apply to South Carolina.

Pursuant to SC Code 40-68-70(1)(I)-(7), Section 2 (c), above, is amended to say that “Landrum Professional reserves the right of direction and control over jobsite employees assigned to a Client company, and retains the right to hire, terminate, discipline, and reassign jobsite employees assigned to Client. Client maintains primary responsibility for interviewing, hiring, assigning and setting salary and benefits for jobsite employees. Client retains actual control over the day-to-day job duties of jobsite employees, as well as actual control over all portions of the jobsite and job responsibilities and expressly absolves Landrum Professional from any liability for the acts or omissions of said jobsite employees.”

Section 5, Safe Environment is amended to add the following language, “Landrum Professional retains the right of direction and control over the adoption of employment and safety policies and the management of workers’ compensation claims, claim filings and related procedures on joint agreement by Client and the licensee.  Landrum and Client agree that notice to or acknowledgement of the occurrence of an injury on the part of Client is notice to or knowledge on the part of Landrum Professional and its workers’ compensation insurer. For the purposes of Title 42, the jurisdiction of Client is the jurisdiction of the licensee and its workers’ compensation insurer, the licensee and its workers’ compensation insurer is bound by and subject to the awards, judgments, or decrees rendered against them under the provisions of Title 42.  Insolvency, bankruptcy or discharge in bankruptcy of the Client or Landrum Professional does not relieve either party, their respective workers’ compensation insurers from payment of compensation for disability or death sustained by an employee during the life of a workers’ compensation insurance policy. 

Per SC Code 40-68-70(A)(1), section 6(d) is amended to read: Client and Landrum Professional understand and agree that although Landrum Professional reserves the right of direction and control over the day-to-day activities and assignments of jobsite employees, the Client exercises this right and absolves Landrum Professional of said control and any liability arising out of the acts or omissions of Client’s jobsite employees and the conditions of their vehicles and worksites. Client has an affirmative responsibility to report to Landrum Professional any complaints, allegations, or incidents of any tortious misconduct or workplace safety violations, regardless of the source.  Said report shall be in writing and promptly delivered to Landrum Professional’s President pursuant to the notice provisions of section 15(h).

Per SC Code 40-68-70(A)(2), section 9(d) is deleted in its entirety from this contract.

Pursuant to SC Code 40-68-70(I)(1)-(7), Section 9 (b) is amended to include “Landrum assumes responsibility for the payment of wages to the assigned employee without regard to payment by the Client to Landrum.   If this agreement is terminated and jobsite employees are entitled to any accrued wages, Landrum shall pay the full wages due the employees including all wages as defined by South Carolina Code Section 41-27-380.”

Pursuant to S.C. Code Section 40-68-60© and S.C. Code Reg. 28-1000(J)(2), Landrum will provide notice to all worksite employees to state: ‘We are operating under and subject to the Workers’ Compensation Act of South Carolina. In case of accidental injury or death to an employee, the injured employee, or someone acting on his or her behalf, shall notify immediately (insert name of professional employer organization, address, and telephone number) or (name of Client company, address, and telephone number). Failure to give immediate notice may be the cause of serious delay in the payment of compensation to you or your beneficiaries and may result in failure to receive any compensation benefits.  The notice shall also state that Client at that location is operating as a co-employer with Landrum and shall provide the contact Information of the South Carolina Department of Consumer Affairs, including website, address, and phone number.

Client and Landrum are operating as co-employers.  Landrum is regulated by the South Carolina Department of Consumer Affairs, whose website, address and phone number are as follows: www.consumer.sc.gov; 2221 Devine Street, Ste. 200, Columbia, SC 29250-05757; 800.735.2905.