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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.
Since Pennsylvania doesn't have a Right to Work law to guarantee union membership and financial support are strictly voluntary for workers, a union boss can legally have a worker fired for not paying union dues or fees.
A leased employee earns either a salary or an hourly wage, depending on their position and the company policy. They are paid through the leasing agency. An independent contractor is usually paid per project/task completed. Leased employees are provided with all of the benefits (retirement plans, medical benefits, etc.)
ADP is the largest PEO in the U.S. ing to Yahoo Finance, with more than 400,000 worksite employees.
Following states are Client Reporting: Alaska, Arkansas, Connecticut, Delaware, Illinois, Iowa, Kentucky, Massachusetts, Minnesota, Mississippi, Nebraska, North Dakota, Pennsylvania, Rhode Island, South Carolina, South Dakota, Vermont, Washington and Wyoming.
The professional employer organization and the recipient company officially employ a leased employee, but the professional performs work for only the recipient company. Depending on the state, government agencies may consider the PEO and recipient company to be "co-employers" for the leased employee.
The remaining states (Alaska, California, Delaware, Georgia, Idaho, Iowa, Maryland, Mississippi, Missouri, Pennsylvania South Dakota, and Wyoming) do not have licensure or registration requirements specifically for PEOs.
PEO means professional employer organization. They serve to help small and midsized businesses manage certain HR responsibilities and risks through co-employment.