Retirement Plan Administrator (TPA) Retirement Plan Consultants
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Retirement Plan Legal Specialist Pentegra
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Pentegra
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Jr Retirement Plan Administrator/ Administrative Assistant Hochheiser Deutsch & Co, Inc.
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Retirement Plan Documents Specialist Loren D. Stark Company
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Compass Retirement Consulting Group, Inc.
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Retirement, LLC
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Employee Benefits and Executive Compensation Associate Attorney Verrill
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Trucker Huss, A Professional Corporation
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Retirement, LLC
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Bates & Company
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Carpenter Morse Group
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Retirement Plan Relationship Manager ERISA Services, Inc.
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Question 59: What is the current legal status of PEOs and other leasing organizations being regarded as a "co-employer" with their clients for retirement plan purposes? | |
Answer: Murky, at best. I've written a detailed article on the subject for the fall issue of the Journal of Pension Benefits, and of course, a detailed analysis appears in Chapter 4 of the second edition of my book, Who's the Employer?. But rather than spell out all the points here, let me hit the key issues:
In other words, it is indeed possible that a staffing firm might be a common law employer of its workers, even if its client is also a common law employer of those same workers. However, based on what I've seen in the case law, that will have to come because the staffing firm has an active role as an employer, beyond simply writing payroll checks and filing tax returns. This is clearly an area on which we will see further action in the coming months. Stay tuned! |
Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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