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Coemployment

Coemployment

Definition

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.

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