Employee leasing is an alternative for employers to manage the administrative functions of their work force. Employers enter into a contract with a worker leasing company, commonly known as a Professional Employer Organization (PEO). In most cases, the workers are already established with the employer. The PEO often hires these workers and leases them back to the employer under a contract for a fee for the staffing or management services provided. Worker-leasing companies take on the responsibility of the payroll, employment taxes, and worker benefit fund assessments. They may also offer workers' compensation insurance, retirement options, and medical benefits.

Worker leasing differs from temporary staffing services. All arrangements for staffing are on a worker leasing basis, requiring specific licensing, unless the workers are provided to a client on a "temporary basis" with written documentation that indicates the duration of the work to be performed under the special situation.

Oregon Revised Statute (ORS) 656.850 requires leasing companies to obtain a license from the director of the Department of Consumer and Business Services prior to doing business in Oregon. (more)