coemployment
A term used in employee leasing arrangements to describe the relationship
between the employee leasing company, the client company, and the leased employees.
Because both firms essentially share employees and this creates ambiguity as
to who is the statutory employer for the purpose of the provision of workers
compensation, numerous jurisdictions have designated the employee leasing company/professional
employer organization (PEO)
and the client company as coemployers and afforded them both the protection
of exclusive remedy when specific statutory requirements are met by the two
parties. See also Coemployer; Employee leasing;
Exclusive remedy.
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