Co-Employment

Co-employment is a relationship in which two organizations — commonly a staffing agency and its client — each hold some of the legal responsibilities of an employer for the same worker.

In a typical staffing arrangement the agency handles payroll, taxes, and many compliance obligations, while the client controls the work environment, direction, and safety at its site. Because both parties share aspects of the employment relationship, both can carry certain legal duties.

Understanding co-employment matters because responsibilities such as workplace safety and anti-discrimination compliance can extend to the client even though the agency is the payroll employer. Contracts usually spell out which party is responsible for what.

Related terms

Related staffing services