What insurance procurement obligations does the Staffer have for Placed Employees working with Degree Wellness?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
The services shall be performed by persons in the employ of Staffer and Staffer assumes legal responsibility as the employer of said persons, including payment of wages, benefits and other compensation due to said persons, procurement of insurance, including, without limitation, workers' compensation insurance, and Staffer's compliance with all applicable federal, state, local laws and other requirements, including payment of all taxes withheld from or due on the Placed Employees. Staffer will comply with all laws governing the employer-employee relationship, except those responsibilities that are expressly delegated to Group in this Agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the Staffer is responsible for procuring insurance for their placed employees. Specifically, the Staffer must obtain workers' compensation insurance.
This obligation means that as the employer of the individuals providing services, the Staffer is legally responsible for ensuring they have appropriate insurance coverage. This includes covering costs associated with workplace injuries or illnesses sustained by the placed employees. The Staffer's responsibilities extend to compliance with all applicable federal, state, and local laws related to employment, including the payment of all taxes withheld from or due on the Placed Employees.
Degree Wellness emphasizes that the Staffer operates as an independent contractor. The Staffer retains the sole and exclusive right and obligation to manage their employees, including hiring, firing, screening, record maintenance, and performance management. This reinforces that Degree Wellness will not be held responsible as a joint employer. The Staffer also agrees to indemnify Degree Wellness against any liability for premiums, contributions, taxes, or benefits payable under any workers' compensation, unemployment compensation, or health care laws for the Staffer's employees.
Prospective Staffers should carefully consider these insurance and compliance obligations as they represent a significant aspect of their operational costs and legal responsibilities. Failing to meet these obligations could result in legal and financial repercussions for the Staffer.