Single employment vs. co-employment

Single Employment Vs. Co-employment

Single Employment vs. Co-employment

The key difference between single employment and co-employment is outsourcing. Single employment is exactly what is sounds like; it is the status of an employer who has the sole legal rights and responsibilities of employment with regards to their workforce. Co-employment exists when the legal rights and responsibilities of employment have been divided and outsourced. In the co-employment scenario, there are two employers with actual or potential legal rights and obligations with respect to the same employee or group of employees.

Single Employment

  • One employer retains all employer responsibilities
  • Employed and paid the direct provider of product or service
  • The sole employer administers wages and benefits
  • Hours worked and wages are collected and paid by the sole employer
  • The sole employer deals directly with work comp carrier regarding risk management, premium calculations and deposits, claim investigations, loss control, premium audits, etc.


  • Two legally separate employers share some, or all, of the employer responsibilities with the same employees
  • Employed by the staff leasing company, but working for the direct provider of product or service
  • The staff leasing company administers wages and benefits
  • Hours worked and wages to be paid and directed by the sole employer, but administered by the staff leasing service.
  • The staff leasing company deals directly with the work comp carrier regarding risk management and the correlating responsibilities and liabilities.

Single Employment vs. Co-Employment | Eagle Employer Services

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