When you partner with a Professional Employer Organization, you enter a unique HR outsourcing relationship commonly known as Shared Employment or Co-Employment. The PEO handles the administrative functions and liabilities that come with having employees, including relief from certain employer-related fiduciary responsibilities and risks.
A Client Services Agreement (CSA) outlines the responsibilities and liability we share in the areas of human resources, workers’ compensation, safety, employee benefits and payroll.
What does not change is direction and control of your business and its employees. You will focus on your business (whatever product or service you provide), determine business objectives, business agenda, and direct your employees’ daily activities.
You maintain 100% direction and control of your company, but you no longer have 100% of the liability.
The PEO shares some of the business’s legal liability with you for HR, benefits, and labor and employment law compliance.