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.
Drawbacks of employee leasing Less control: One of the greatest risks of employee leasing is that you're delegating an important part of your business to an outside company that doesn't know your business as well as you do. You lose control of your processes, systems and benefits.
An employee leasing agency will provide you with temporary workers, but a PEO doesn't. In a co-employment arrangement, you supply and manage your own workforce, while the PEO helps you handle HR administration.
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.
If a real estate agent were to give legal advice, draft legal language in a contract or perform any other activity that resembles practicing law, then they're not only putting their client at risk but they're also subjecting themselves to serious consequences, including losing their license, risking a potential lawsuit ...
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.
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.