A business may not "borrow" employees from another business without each business having New York State workers' compensation insurance coverage in its own legal name. Parent corporations that lend employees to "subsidiary" corporations that the "parent" corporation fully owns must have a workers' compensation policy that lists all the legal entities using employees and must be able to provide proof of workers' compensation coverage for each of the legal entities using employees under their specific Federal Employer Identification Number (FEIN).
The only exception is when a business obtains all of its employees from a Temporary Service Agency (TSA). When a TSA has a full New York State workers' compensation insurance policy and directly pays individuals, provides their direction and control, maintains the ability to hire and fire them and satisfies other factors as defined by case law in determining an employer/employee relationship, the TSA is generally considered the primary employer under the Workers' Compensation Law. A Temporary Service Agency is a business that is classified as a temporary service agency under the business's North American Industrial Classification System (NAICS) code