Quick Reference Guide to Florida Professional Employer Organization Terminology: Licensed Company Terms . . . EL, CO… What does it all mean?

Reprinted from the Florida Association of Professional Employer Organizations Web page (www.fapeo.org)

• EL – An “employee leasing company” means a sole proprietorship, partnership, corporation, or other form of business entity engaged in an arrangement whereby the entity assigns its employees to a client and allocates the direction of and control over the leased employees between the leasing company and the client.
  • This term does not include the following:
  • (a) temporary help arrangements to support or supplement the client’s workforce in special work situations such as employee absences, temporary skill shortages, and seasonal workloads;
  • (b) an arrangement in which an organization employs only one category ofemployees and assigns them to a client to perform a function inherent to that category and which function is separate and divisible from the primary business of the client;
  • (c) a facilities staffing arrangement, whereby an organization assigns its employees to staff a specific client function, on an ongoing basis, provided that the number of individuals assigned comprises no more than 50 percent of the workforce at a client’s worksite and provided that no more than 20 percent of the individuals assigned to a particular client  function were employed by the client immediately preceding thecommencement of the arrangement;
  • (d) an arrangement in which an organization assigns its employees only to a commonly controlled company or group of companies as defined in s. 414 ofthe Internal Revenue Code and in which the organization does not hold itself out to the public as an employee leasing company; or
  • (e) a home health agency or a health care services pool unless otherwise engaged in business as an employee leasing company.

• CO – A “controlling person” means any natural person who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of any employee leasing company, including, but not limited to:
  • direct or indirect control of 50 percent or more of the voting securities of the employee leasing company; or
  • the general power to endorse any negotiable instrument payable to or on behalf of the employee leasing company or to cause the direction of the management or policies of any employee leasing company; or
  • any natural person employed, appointed, or authorized by an employee leasing company to enter into a contractual relationship with a client company on behalfof the employee leasing company.

• DM – A “de minimus employee leasing company” is an employee leasing company that is domiciled outside the state and is licensed or registered as an employee leasing company in its state of domicile or residence. This company does not provide leased employees to a client whose business is located or domiciled within Florida nor does the company maintain an office in this state or solicit in any manner clients located or domiciled within Florida. This company also does not have more than 50 leased employees working in this state. This company is registered with the state but not licensed to do business within Florida.