CO-EMPLOYMENT

Co-employment is generally defined as a contractual allocation and sharing of employer responsibilities between a PEO and its client company. In this situation, the employees are technically employed by two separate entities. These entities are the business owner, also called the client company or worksite employer; and the PEO, also called the co-employer or administrative employer. The worksite employer determines the employee's daily duties and job functions while the co-employer handles the administrative side of employment. Typically, co-employers do not supply the workforce; generally, they supply services and benefits to a client employer and its existing employees. The client employer maintains control of all business decisions and operations, while the co-employer manages employee-related aspects of business operation. The details of this process can vary from PEO to PEO. To better understand the process, you would need to review the Client Service Agreement of the PEO.