Leased Employee?

[Guest ircreader]

We have a large company (over 30,000) and we lease employees from a PEO. We'd prefer to have these employees log less than 1,000 or at a maximum 1,500 hours per year.

But many of these employees like the temporary work and over the years have accumulated many 1,000 hours in different departments of the company. Since we're so big, it's easy for these employees to move from department to department. Many managers are very upset at the prospect of not being able to have their favorite temp come back or stay working for them. They are proposing that we only use them 999 hours each year. We are proposing that they hire the person if they like them so much but they counter that they can't use an FTE and that the person does not want to be an FTE or even part-time.

We do exclude leased employees from our plans and have the clause regarding exclusion in the event they are reclassified.

Are the hours measured on a calendar year basis only? or do they accumulate? Any thoughts?

[GBurns]

I thought that employees leased through a PEO were always FTE, whereas PTE were provided by Temporary Staffing firms.

[Guest ircreader]

Sorry. I was talking about our company hiring them on full- or part-time and not leasing them through the PEO after they hit the 1500 hour mark. That would be the ideal but most managers don't like the idea.

[GBurns]

You misunderstood my post.

Employees through a PEO are usually the client organization's "former" employees who are now "reclassified". The "former" employees are usually FTE and not PTE. Organizations that provide Temporary employees are Temporary Staffing agencies not PEOs.

The question is really, how come you have PTEs through a PEO? Is it really a PEO or is it a Temporary Staffing service?

If these are PTEs through a Temporary Staffing service, they are not leased employees initially.