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Legally, referred to as a “Joint Employer” relationship, Co-employment is often used to describe the relationship among two or more employers when each has specific actual or potential legal responsibilities to the same worker or group of workers.

The Professional Employer Organization (PEO) relationship involves a contractual allocation and sharing of employer responsibilities between the PEO and the Business Owner. This shared employment relationship is called “Co-employment”.

The Business Owner and the Professional Employer Organization (PEO) basically become “Co-employers”. The Business Owner/“work site employer”, retains workplace management and supervisory control of the “Co-employees” and the Professional Employer Organization (PEO)/ the “employer of record”, becomes the ‘Off-Site” Payroll, Human Resources and Safety/Risk Management Groups for the “Co-employees”.

The PEO assumes the responsibilities for Payroll and Human Resources Administration, Safety and Risk Management, Workers’ Compensation.

Common Co Employment Offerings (PDF) - The basic overview of what services PEO’s offer.

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