“In today’s workplace, traditional employment relationships are changing. Flexibility is the watchword, for both employers and workers. Companies are establishing smaller “core” workforces and supplementing them with part-time and temporary workers in a variety of alternative employment arrangements. Some businesses are outsourcing employer responsibilities under ‘professional employer’ arrangements that often are confused with staffing services.”

Edward A. Lenz, Co-Employment

 

By Alexandra Zatarain

 

Co-employment relationships are established between two or more business, where each has actual or potential legal obligations and rights as an employer in respect to the same employee. Obligations can include providing wages, benefits, paying and withholding taxes, insurance, and more.

When the facts and circumstances align, the law imposes obligations on the employer towards the employee. Because of the nature of the staffing firm’s work, both the firm and the end client will have enough contact with the employee so that both will be viewed by the law as employer.