employee leasing

chrism

My client wants to know the liability issues if he leases his current employees to another employer for a six month period while his business is slow. The employees will remain on his payroll, etc. Can someone help me identify benefits and liability issues for him before he commits to this arrangement?

bsa

Your client should check with his business insurance carriers because coverage for a leasing employer (temporary service) may have different rate calculations. The employees being leased would remain employees of your client, therefore subject to your clients benefits and policies, i.e. health insurance, vacation, 401k, etc. Also, if the other employer abuses the employees your client will share the blame. It sounds like a good plan on the surface, it's the details that could change the picture.