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White Plains Employee Leasing Workers’ Compensation Lawyer

In New York, many employers only need workers for a short period of time for a specific job. For example, a new startup company in New York might need a payroll experts to handle the company’s initial payroll matters and to set up a payroll plan for future employees. However, the startup probably does not need to have those payroll experts working for the business in a long-term fashion. In scenarios like this one, a business might turn to a Professional Employer Organization (PEO) in order to obtain the services of leased employees.

If you get hurt on the job while you are working as a leased employee, you should know that you may be eligible to obtain workers’ compensation benefits and should discuss your options with a White Plains workers’ compensation lawyer.

How Does a PEO Work?

What is a PEO and how does it work? According to ADP, PEOs “partner with companies to provide comprehensive HR outsourcing to help manage a company’s human resources, employee benefits, regulatory compliance, and payroll outsourcing.” Tasks like recruiting, risk management, and employee training also are commonly outsourced to PEOs.

How does a PEO work? The businesses agree to something called a “co-employment arrangement,” through which the PEO shares some of the employer responsibilities with the business. Generally speaking, PEOs most commonly are used by smaller businesses that do not want to hire employees to handle the specific tasks completed through PEOs. While PEOs can be extremely beneficial to sole proprietorships, partnerships, and other small businesses, the question of on-the-job injuries can be complicated when workers get hurt.

What is a Leased Employee, and How Does New York Workers’ Compensation Affect Them?

Employees who provide services to smaller businesses through PEOs are typically considered to be leased employees. What happens when a leased employee gets hurt while working? According to the New York Workers’ Compensation Board, for the purposes of workers’ compensation benefits, leased employees “are the employees of the company that is paying to lease them.” For example, if Small Business A works with a PEO to lease several payroll employees, then Small Business A is the employer for the purposes of workers’ compensation.

As an employer of leased employees, the company that is paying to lease employees “must have a workers’ compensation policy in its name.” The company or business leasing the employees typically is required to have a workers’ compensation policy in place to cover leased employees and any non-leased employees, as well. Alternately, the PEO or leasing firm may be able to cover its leased employees through a workers’ compensation policy, but the policy must be for a specific company or client that is leasing its employees.

Learn More from a New York Workers’ Compensation Lawyer

As you can see, coverage for leased employees can get very complicated. Any leased employee who gets hurt at work should seek advice from a New York workers’ compensation lawyer as soon as possible to learn more about coverage and benefits. Contact the Law Office of Michael Lawrence Varon to get started on your claim.

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