When I began to participate in the procurement of reinsurance for our PEO workers’ compensation program some years back, it occurred to me that many who supported both the temporary staffing and PEO industries with insurance capital did not know the difference between the two. Every year, I was asked to reconfirm the difference between the two and discuss the unique risk characteristics that exist within each business model. In my opinion, then and now, a temporary staffing relationship is one in which there is a sole employer and the PEO is one in which co-employment exists. Simply enough? Apparently not.
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