Worksite Employee

A worksite employee is an employee who is jointly employed by both a PEO and a client company under a co-employment arrangement. The term distinguishes PEO-employed workers from the PEO's own internal staff.

Worksite employees work at the client company's location and under the client's day-to-day direction, but they are on the PEO's payroll and covered by the PEO's benefits and workers' compensation programs. From the employee's perspective, their day-to-day work experience is unchanged — they report to the same managers, follow the same policies, and work at the same location.

The co-employment relationship gives worksite employees access to benefits and protections that their employer might not be able to provide independently, such as comprehensive health insurance, 401(k) plans, and professional HR support.