According to NAPEO; Co-employment is a contractual allocation and sharing of certain employer responsibilities between the Professional Employer Organization (PEO) and the client, as delineated in a contract typically called a client service agreement (CSA).

Co-employment also means a relationship that is expected to be a continuous relationship instead of a brief or task explicit one, wherein the rights, obligations, and commitments of a business that emerge out of a work relationship have been allotted between the client company and the professional employer.

How Does It Work?

Co-employment gives two employers or companies explicit lawful rights concerning a shared employee. It liberates employers of risk and expands the company’s efficiency, profitability, and focus. The PEO model is therefore appealing to both small and mid-sized businesses and associations.

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