Coemployer refers to either the employee leasing company or the client company in an employee...
coemployment
Coemployment is a term used in employee leasing arrangements to describe the relationship between the employee leasing company, the client company, and the leased employees.
Additional Information
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.
Related Terms
Employee leasing is a permanent staffing method under which an employee leasing company (sometimes...
Exclusive remedy is a component of workers compensation statutes that bars employees injured on the...
