The Co-Employment Agreement serves as the foundational document for businesses seeking to leverage professional employer organization services while maintaining day-to-day control of their workforce. This document has become increasingly important in the United States as companies seek to optimize their HR operations and ensure compliance with complex employment regulations. The agreement typically covers areas such as workers' compensation, benefits administration, payroll processing, and regulatory compliance, while clearly defining the shared and separate responsibilities of both the PEO and the client company.
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1. Parties: Identification of the PEO, client company, and affected employees
2. Background: Context of the co-employment arrangement and business purpose
3. Definitions: Key terms used throughout the agreement including PEO, Client, Co-Employment, Worksite Employees
4. Allocation of Responsibilities: Clear division of employer responsibilities between PEO and client company
5. Employment Terms: Basic terms of employment including compensation, benefits, and working conditions
6. Compliance Obligations: Regulatory compliance responsibilities of each party under federal and state laws
7. Term and Termination: Duration of the agreement and conditions for termination or modification
1. International Operations: Provisions for companies with international employees or overseas operations
2. Special Industry Provisions: Industry-specific requirements and compliance measures for regulated sectors
3. Multi-State Operations: Specific compliance requirements for operations across multiple states
1. Schedule A - Service Description: Detailed breakdown of PEO services provided under the agreement
2. Schedule B - Fee Structure: Comprehensive pricing and payment terms for PEO services
3. Schedule C - Employee Handbook: Workplace policies and procedures applicable to co-employed workers
4. Schedule D - Benefits Summary: Detailed overview of employee benefits package and administration
5. Schedule E - State-Specific Addenda: Additional terms and requirements specific to different state jurisdictions
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