Professional Employer Organization (PEO) Client Service Agreement
(PA)

Summary

This template is a professional employer organization (PEO) client service agreement that governs the relationship between a client company and a professional employer organization in Pennsylvania. It is intended for private employers and is based on federal law and Pennsylvania law. This template includes practical guidance, drafting notes, and alternate and optional clauses. Its application is limited to situations wherein the PEO handles human resources functions for a client company. It does not apply if the PEO also acts as a staffing agency. Under the PEO/employee leasing arrangement, a company transfers all or a portion of its workforce to the PEO/leasing firm and the PEO/leasing firm assumes responsibility for payroll, benefits, and other human resources functions. The company, for its part, typically retains control over the work and workers and is normally considered an employer. PEOs/employee leasing agencies do not usually recruit or screen workers. For information on state laws regarding PEOs, see Professional Employer Organization and Employee Leasing Agencies State Law Survey.