Worker leasing is an alternative for employers to manage the administrative functions of their workforce. Under a typical worker leasing arrangement, an employer contracts with a worker leasing company, commonly called a professional employer organization (PEO), to co-employ all or most of the employer’s regular workforce. The PEO becomes the employer of record for certain employer obligations, typically payroll, employment taxes, workers’ compensation insurance, and Workers’ Benefit Fund assessments.
PEOs may also offer other services, such as human resources support, retirement plans, and health plan options. This allows the client employer to operate other aspects of the business.
Worker leasing companies must have a license to legally operate in Oregon. The license is issued by the Workers’ Compensation Division and is valid for two years. At expiration, the license may be renewed.
Worker leasing differs from temporary staffing because the employees are permanent. Temporary staffing does not require a license.
NOTICE: OUR RULES HAVE CHANGED, EFFECTIVE JULY 1, 2018
- Oregon no longer requires worker leasing companies to maintain an in-state location
- Oregon now offers a limited license
- Oregon now accepts applications electronically from Employer Services Assurance Corporation (ESAC)-certified PEOs
- All forms have been updated
- New forms have been added
- The time frame for submitting Worker Leasing Notices is extended from 14 days to 30 days