THOUGHT LEADER 79 assume all employment liability. With a PEO, they are ‘co-employers’ and add value by assuming potential liability. PEOs also engage in a long-term, co-employment partnership with clients, whereas temporary staffing agencies focus on providing temporary or contract workers to fill specific positions for a limited duration. What are the legal difficulties inherent in employee leasing, and how can these best be tackled by a competent employment law attorney or team? Employee leasing, or with any form of co-employment relationship, can present several legal challenges. The overarching challenge is the large scope of liability that exists, or can exist, in an employment setting. This can include issues such as employment discrimination, wage and hour violations, or wrongful termination claims. Since PEOs sometimes provide company’s operational facility, and the employees are placed onto the employee roster of the PEOs. Now, the ‘flow of employees’ differentiation breakdown of staffing office signup and placement at operational facility versus operational facility origin and office placement on the PEO books is oversimplified. Of course, there are many other distinguishing factors and nuances. What is particularly different is that with a temporary staffing agency, the value they add as an employer is to nature of their client relationship and the direction of the ‘flow of employees’ from one organisation to another. Staffing agencies recruit and hire workers and then they place the temporary workers at their client companies’ operations (such as a warehouse or a factory). In essence, an employee originates at a staffing agency office and is placed to work at a client company’s facility. In some ways, with PEOs, the ‘flow of employees’ is the opposite of staffing agencies. The employees originate at a client Employee leasing, or with any form of co-employment relationship, can present several legal challenges. The overarching challenge is the large scope of liability that exists, or can exist, in an employment setting.
RkJQdWJsaXNoZXIy Mjk3Mzkz