Myth 1: Co-employment is bad There is nothing bad about co-employment or partnering with a co-employer. These relationships only cause problems if either entity is uncertain of their respective roles and responsibilities or fails to comply with employment law requirements. Be sure to partner with a certified company that communicates and conducts itself openly and transparently. Myth 2: Co-employment is risky if you intend to hire independent contractors Bringing on independent contractors such as freelancers while in a co-employer agreement is not risky as long as they are classified correctly. The primary responsibility of co-employers is to support your full-time employees: for example, most co-employers will not pay your independent contractors even if they manage employee payroll. However, great co-employers will offer knowledge and recommendations regarding any independent contractors you hire. They will also help you navigate independent contractor classification and share liability in the case of misclassification. Myth 3: Using a staffing agency removes the risk associated with co-employment Not necessarily. When a company engages a staffing agency to find skilled workers for specific roles, both entities are viewed as employers and have obligations to the worker. The agency remains the workers’ primary employer, which means they are responsible for HR functions such as recruiting, hiring, and payroll, while the company handles the work agreement. If the staffing firm fails to comply with employment laws, both parties will be held liable. For example, If a worker decides to take legal action because they think they should be treated as an employee, both your company and the staffing agency can be held responsible and have to pay damages. Myth 4: Co-employment replaces my HR team No, co-employment manages some of the most technical and legally complex aspects of employment. But many companies that use co-employers also have HR teams focused on employee experience, company culture, and performance management. If you have an HR department or personnel, a co-employer can augment the HR team’s capabilities and provide additional expertise and initiatives. A co-employment partner can safely guide and support your business as it grows, freeing up more of your HR team’s time to divert their efforts to learning and development to ensure everyone grows alongside the company. Co-employment is sometimes mistaken for employee leasing or joint employment. Although these arrangements share some similarities, they are not synonymous. The significant difference between them revolves around the employers’ responsibilities which we explain below. Co-employment vs. joint employment Joint employment means that two separate employers govern the same worksite employees. Both parties contribute to a worker’s wage, schedule, and supervise their performance. Whereas, with co-employment, the company is in charge of the hiring process and the workers’ day to day work. Co-employment vs. employee leasing Employee leasing is an arrangement where a staffing agency provides a business with temporary workers. Once a temporary employee has fulfilled their duties, they return to the staffing company. On the other hand, co-employers are not responsible for sourcing new employees on the company’s behalf. If a company decides to stop working with a co-employer, the employees remain with the company.