Employee Leasing Agreement for the United States

Employee Leasing Agreement Template for United States

An Employee Leasing Agreement is a legal contract used in the United States that establishes the terms and conditions under which one company (the lessor) provides employees to another company (the lessee) for a specified period. The agreement covers employment responsibilities, liability allocation, compensation structures, benefits administration, and compliance with federal and state labor laws. It includes specific provisions for worker classification, tax obligations, insurance requirements, and regulatory compliance under US federal and state legislation.

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What is a Employee Leasing Agreement?

The Employee Leasing Agreement serves as a comprehensive framework for professional employer organizations (PEOs) and client companies in the United States to establish compliant workforce solutions. This document is essential when companies need to augment their workforce while minimizing administrative burden and ensuring regulatory compliance. The agreement addresses crucial aspects including employment responsibilities, benefits administration, workers' compensation, liability allocation, and compliance with federal and state labor laws. It's particularly relevant in situations requiring specialized skills, temporary workforce augmentation, or administrative simplification of employment relationships.

What sections should be included in a Employee Leasing Agreement?

1. Parties: Identification of the lessor and lessee companies

2. Background: Context of the agreement and business purpose

3. Definitions: Key terms used throughout the agreement including Leased Employees, Lessor, Lessee, Services

4. Scope of Services: Details of the employee leasing arrangement, including responsibilities of each party

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Payment Terms: Fees, payment schedule, invoicing procedures, and late payment penalties

7. Employment Responsibilities: Division of employer obligations between parties, including payroll, benefits, and workplace policies

8. Compliance: Obligations regarding employment laws, tax requirements, and regulatory compliance

9. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

10. Confidentiality: Protection of confidential information exchanged during the relationship

What sections are optional to include in a Employee Leasing Agreement?

1. International Services: Additional provisions for cross-border employee leasing arrangements

2. Specialized Training: Requirements and responsibilities for specific employee training programs

3. Industry-Specific Compliance: Additional compliance requirements for regulated industries

4. Employee Transfer Provisions: Terms governing the potential transfer of employees between parties

What schedules should be included in a Employee Leasing Agreement?

1. Schedule A - Leased Employees: List of employees covered by the agreement, including positions and qualifications

2. Schedule B - Service Fees: Detailed fee structure, calculation methodology, and payment terms

3. Schedule C - Benefits Package: Description of benefits provided to leased employees

4. Schedule D - Service Level Agreement: Performance metrics and service standards

5. Appendix 1 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

6. Appendix 2 - Compliance Procedures: Detailed procedures for maintaining regulatory compliance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Clauses
Industries

Fair Labor Standards Act (FLSA): Federal law governing minimum wage, overtime regulations, and record-keeping requirements for employees

IRS Regulations: Federal tax regulations covering employee classification, tax withholding requirements, and W-2/1099 reporting obligations

Immigration Reform and Control Act: Federal law requiring I-9 verification and work authorization verification for all employees

Employee Retirement Income Security Act (ERISA): Federal law governing benefits administration and retirement plan obligations in employee arrangements

Affordable Care Act (ACA): Federal healthcare law establishing coverage requirements and reporting obligations for employers

State PEO Laws: State-specific laws governing Professional Employer Organizations, including registration, licensing, and financial responsibility requirements

State Labor Laws: State-specific regulations on minimum wage, overtime, break times, and workers' compensation requirements

State Unemployment Insurance: State-specific requirements for unemployment insurance tax contributions and claims management

State Employee Leasing Regulations: State-specific requirements and regulations specifically governing employee leasing arrangements

Insurance Requirements: Various insurance requirements including workers' compensation, liability, and employment practices liability insurance

OSHA Compliance: Workplace safety regulations and compliance requirements under the Occupational Safety and Health Administration

Data Privacy Regulations: Requirements for protecting employee data and maintaining confidentiality in employee leasing arrangements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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