Co-employment

What are the benefits of co-employment? 

Co-employment enables small businesses to increase productivity by offloading complicated time-consuming HR work to a team of experts. They can also access compliance support and resources that make navigating local, state, and federal employment laws easier. Another benefit is access to large-group health insurance plans, usually reserved for larger companies at more affordable rates.

Co-employment vs. joint-employment

Co-employment shouldn’t be confused with joint employment. Under joint employment, multiple employers have direct and immediate control over the same employees, including work schedules, employee responsibilities, wages, performance, and disciplinary action or termination. Under the co-employment relationship, the client company retains full control over its employees and will continue to manage day-to-day scheduling and employee responsibilities. 

Co-employment vs. employee leasing

Employee leasing is also distinct from co-employment, and tends to be a relationship where a staffing agency provides a company with temporary employees. Under employee leasing, employees will work at the client company for a specified time or project and return to the staffing agency after their work is completed and they’re no longer needed. In a co-employment arrangement, the PEO only assists with HR admin tasks and doesn’t provide additional employees.