Why Leased Employees Don't Alleviate Liability

Law360, New York (January 3, 2016, 8:56 AM EST) -- In a common scenario, a business obtains some or all of its workers from a third-party staffing firm or similar provider, which remains the individuals' "employer of record" for payroll and other purposes. There are any number of sensible business reasons to utilize such an arrangement, but a common misconception is that the individuals involved are and remain employees only of the staffing firm and that the "customer" is therefore insulated from any potential liability involving them. On Nov. 18, 2015, the U.S. Court of Appeals for the Third Circuit provided a clear reminder that this assumption of insulation is at best dangerous and at worst entirely mistaken....

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