{"id":33703,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/the-benefits-and-potential-risks-of-using-leased-workers.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"the-benefits-and-potential-risks-of-using-leased-workers","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/human-resources\/the-benefits-and-potential-risks-of-using-leased-workers.html","title":{"rendered":"The Benefits and Potential Risks of Using Leased Workers"},"content":{"rendered":"
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For a start-up business, as for an established business, the prospect of retaining leased workers holds both benefits and risks. A leased worker is an individual who provides services for a business, but who is an employee of, and is paid by, a separate specialty leasing company. The leasing company, as the Employer, is responsible for personnel administration matters, such as payroll withholdings; employment benefits; pension; medical, dental and disability insurance; educational allowances; and vacations. Leased workers are considered employees of the leasing company for tax and benefit purposes.<\/p>

The primary danger in using leased employees results where the business using the leased workers' services is deemed to be a "joint employer" of the leased worker along with the leasing or temporary staffing agency.<\/p>

The risks to the business using a leased employee are exposure that:<\/p>