# What is co-employment?

Source: https://launch-rec.com/glossary/co-employment. Category: Compliance. Market: US.

## Definition

A situation where both the staffing agency and the client are treated as employers of the same worker, sharing legal obligations and liabilities.

## In practice

Co-employment is normal in US staffing — it is not something to avoid, it is something to control. The agency handles payroll, taxes and employment paperwork; the client directs the day-to-day work.

Risk comes from blurred lines: client-run performance reviews, client-issued discipline, or long assignments with no tenure policy. Contract language and a tenure limit keep the relationship clean.

## Related terms

- https://launch-rec.com/glossary/worker-classification
- https://launch-rec.com/glossary/eor
- https://launch-rec.com/glossary/peo