Employee Leasing Agreement With An Agent In Queens
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FAQ
While leased employees are legally employed by a PEO, they work under the day-to-day management and supervision of the leasing business — much like any other employee. This generally gives the leasing business control over how they spend their time, which tools they use to perform their work, their deadlines, and more.
Employee leasing is an arrangement between a business and a staffing firm, who supplies workers on a project-specific or temporary basis. These employees work for the client business, but the leasing agency pays their salaries and handles all of the HR administration associated with their employment.
The definition and the status of a temporary or leased employee can be described simply as employees who do not have the status of common law employees, which are employees who have access to all of the benefits and job security that an employer may provide. This simplified explanation does require elaboration.
Employee leasing is an arrangement between a business and a staffing firm, who supplies workers on a project-specific or temporary basis. These employees work for the client business, but the leasing agency pays their salaries and handles all of the HR administration associated with their employment.
California law has stipulated the requirements for classifying an employee as a temporary agency employee. These requirements include the right of the agency to assign and reassign a worker, but the workers have the right to refuse an assignment and remain on the agency's hiring list.
A PEO, or professional employer organization, has a different relationship with client companies. Instead of being a firm that leases employees to their clients, a PEO becomes an employer of record for the client's employees. This is known as a co-employment agreement.
Employee leasing is anytime you enter into a contract with a staffing or employee leasing agency to lend you an employee to perform work for your company. Work responsibilities are typical to those of a regular employee at your business, such as customer service, executive assistant, marketing, and so on.
For example, leased employees are official employees for the PEO that manages them, while independent contractors operate independently of any employer, and they typically provide a service to a client who pays them directly for those services.
Employee leasing and working with a PEO are not the same thing. PEOs operate under a co-employment model, which is different from the typical employee leasing arrangements. During a co-employment arrangement, the PEO is listed as a co-employer.
