Legal Definitions - borrowed employee

A borrowed employee refers to an individual who is formally employed by one company (known as the "general employer") but is temporarily assigned to work for and under the direct supervision and control of another company (known as the "special employer"). While working for the special employer, this individual performs tasks as if they were an employee of that company, even though their original employment relationship, including payroll and benefits, typically remains with the general employer.

This arrangement often shifts certain responsibilities, such as workplace safety oversight or liability for the employee's actions, to the special employer during the period of the assignment, depending on the specific circumstances and agreements.

• Example 1: Temporary Staffing Agency

  A small accounting firm needs extra administrative support during tax season. They contact a temporary staffing agency, which sends over an administrative assistant named Alex for a three-month assignment. Alex is paid by the staffing agency, receives benefits from them, and his official employer of record is the agency. However, for the duration of the assignment, Alex reports daily to the accounting firm's office, takes directions from the firm's partners, and uses their equipment to manage client appointments and process paperwork.

  Explanation: Alex is a borrowed employee. The temporary staffing agency is his general employer, handling his payroll and benefits. The accounting firm is the special employer because they temporarily direct Alex's day-to-day work, control his tasks, and provide his immediate work environment, even though he is not on their permanent payroll.

• Example 2: Specialized Construction Crew

  A general contractor, "MegaBuild Corp.," is constructing a new high-rise building. For a critical phase involving the installation of a complex HVAC system, MegaBuild Corp. contracts with "ClimateControl Solutions," a specialized firm, to provide a team of HVAC technicians and their supervisor for eight weeks. While on the MegaBuild Corp. site, the ClimateControl Solutions team works under the direct oversight of MegaBuild Corp.'s site manager, who coordinates their schedule with other trades, dictates specific installation sequences, and ensures adherence to MegaBuild Corp.'s overall project safety protocols.

  Explanation: The HVAC technicians from ClimateControl Solutions are borrowed employees. ClimateControl Solutions is their general employer, responsible for their wages and benefits. MegaBuild Corp. is the special employer because, for the duration of the project phase, they exercise direct control over the technicians' daily activities, work methods, and integration into the larger construction project, even though the technicians remain employees of ClimateControl Solutions.

• Example 3: Equipment Rental with Operator

  A municipal parks department rents a specialized street sweeper from an equipment rental company for a large-scale cleanup project. The rental agreement includes an experienced operator, Maria, who is an employee of the equipment rental company. While Maria operates the street sweeper on the city streets, she takes instructions directly from the parks department supervisor regarding which routes to follow, specific areas to target for cleaning, and the timing of operations. The parks department provides the necessary permits and directs the overall workflow of the cleanup.

  Explanation: Maria, the street sweeper operator, is a borrowed employee. The equipment rental company is her general employer, paying her salary and providing her benefits. The municipal parks department is the special employer because they temporarily assume direct control over Maria's work activities, dictating how and where she operates the equipment to achieve their specific cleanup goals, even though she is not on the city's payroll.