Leased Employee

A leased employee is a worker who is formally employed by a staffing or employee leasing agency, but who is assigned to perform ongoing work for a separate client company, often for an extended period rather than a short-term assignment. In this arrangement, the leasing agency handles the formal employer responsibilities, such as payroll and benefits administration, while the client company directs the leased employee's day-to-day work. This arrangement differs somewhat from a traditional temporary staffing placement in that leased employee relationships often involve longer-term, more integrated assignments, sometimes resembling a semi-permanent extension of the client company's own workforce. The leasing agency typically retains legal employer status throughout the arrangement, which can offer the client company administrative simplicity, since the agency handles payroll taxes, workers' compensation insurance, and other employer obligations. Companies using leased employees need to be mindful of joint employer considerations, since the degree of control the client company exercises over the leased worker's daily activities can, in some circumstances, create shared legal responsibilities alongside the leasing agency. Clear contractual agreements outlining each party's specific responsibilities help manage this risk and ensure both the agency and client company understand their respective obligations.