Employee Lease Agreement
Agreement made on the ______________ (date) , between _________________
(Name of Lessor) , a corporation organized and existing under the laws of the state of
______________, with its principal office located at ____________________________
___________________________________________ (street address, city, state, zip
code) , referred to herein as Lessor , and _________________ (Name of Lessee) , a
corporation organized and existing under the laws of the state of ______________, with
its principal office located at _______________________________________________
_______________________ (street address, city, state, zip code) , referred to herein
as Lessee whose Federal Tax Identification Number is ____________________.
Whereas, Lessor is in the business of leasing employees to businesses and
medical clinics; and
Whereas, Lessee desires to lease certain employees of Lessor to (describe
duties or services to be performed) _______________________________________
______________________________________________________________________
______________________ pursuant to the terms and conditions herein contained; and
Whereas, Lessor desires to lease one or more of its employees to the Lessee on
the terms and conditions herein contained;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Lease of Employees; Term of Lease Period
Commencing on the ________________ (date) , Lessee shall lease from Lessor
certain of Lessor’s employees listed in Exhibit A attached hereto and made a part
hereof (the Leased Employees ) in accordance with the terms and conditions set forth
herein. This Agreement shall continue in force and effect until _________________
(date) , unless otherwise terminated by either party pursuant to Section 6-H herein.
2. Obligations of LESSOR
A. Supplying and Supervising of Personnel
Lessor shall lease the Leased Employees to the Lessee in accordance
with Lessee’s expressed needs. Lessor reserves the right to hire or refuse to
hire any person making application to Lessor for employment, whether or not
referred by Lessee, provided such refusal does not violate Sections 4-A and 4-D
of this Agreement.
B. Payroll
Lessor shall be responsible for the payment, processing and issuance of
the Leased Employees’ paychecks. The payroll of the Leased Employees,
1
including any and all associated taxes, insurance and other expenses shall be
reimbursed by the Lessee to Lessor.
C. Payroll Taxes
Lessor shall be responsible for withholding and payment of all payroll
taxes including income tax, social security tax, unemployment contribution and
other payroll taxes as may be required under State and Federal laws with respect
to the Leased Employees. As to such payroll taxes, Lessor shall prepare and
timely file with the proper governmental agencies or authorities all required
returns and reports. Lessor hereby agrees to comply with its obligations stated
herein.
D. Worker’s Compensation Insurance
1. Lessor shall obtain and provide all necessary and legally required
Workers’ Compensation insurance for the Leased Employees as an
expense of the Lessee, and shall manage any worker’s compensation
claims related to the Leased Employees. Lessor shall furnish to the
Lessee a Certificate of Insurance evidencing the issuance to Lessor and
maintenance of Lessor’s policies providing such coverage.
2. Lessee shall notify Lessor immediately upon becoming aware of
any injury that may result in a worker’s compensation claim, and agrees to
allow Lessor to administer or otherwise manage such claims. Claim
management and administration of such claims shall be the responsibility
of Lessor with the Lessee providing assistance as requested by Lessor.
3. If Lessee so chooses, it can continue working with its own worker’s
compensation carrier. Lessor will agree to collect and submit worker’s
compensation payments to Lessee’s insurance carrier as often as
required. Lessor will assist Lessee and insurance carrier with payroll
audits to ensure accuracy of premium payments. Any additional
premiums or refunds would be determined by the method chosen by the
Lessee. Lessee shall provide Lessor with a certificate of coverage. If
Lessee maintains its own worker’s compensation insurance, Lessee will
be responsible for reporting all injuries to its insurance carrier.
E. Medical Insurance
All Leased Employees shall be eligible to procure medical insurance
through a group plan provided by Lessor unless disqualified by the insurer or
unless insurance is otherwise made available. The cost of the Leased
Employee’s medical insurance shall be allocated to the Lessee as an expense of
the Business of Lessee. The provisions of this schedule will be reviewed and
may be changed following the changes in insurance requirements or cost. The
Lessee will determine the eligibility date of coverage for its Leased Employees.
2
3. Obligations of Lessee
A. Employee Information
For all former employees of Lessee that Lessee refers to Lessor for
possible employment, Lessee shall allow Lessor to obtain information and
documentation regarding such former employees, including, but not limited to,
applications, W-4 forms, 1-9 Forms, cafeteria plan election forms, and
information regarding each employee's job class, rate of pay, legally required
withholdings and deductions.
B. Lease Payment
At the end of each work week, but in no event less than seventy-two (72)
hours prior to the date upon which Lessor is obligated to issue payroll to the
Leased Employees covered hereby, Lessee agrees to provide any information
not already in Lessor’s possession that may be necessary to calculate each
employee's compensation, taxes and other deductions. Lessor shall send to the
Lessee on a monthly basis an invoice for the Lessor of the employee's
compensation, together with all other expenses allocable to Lessee pursuant to
this Agreement such as income taxes, social security and insurance.
C. Liability Insurance
Lessee shall obtain and maintain in full force and effect during the term of
the Agreement in limits not less than $1,000,000 per occurrence, comprehensive
general liability and professional liability insurance with respect to the use or
operation of Lessee’s Business and all equipment or property owned, possessed,
transported or leased by Lessee for use in the Lessee’s Business, and Lessee
shall assume full liability to the public for the use or operation thereof. If operating
motor vehicles, Lessee shall maintain all insurance, as well as property
damage/auto liability coverage, at limits as is customary is the business or
practice of Lessee. Lessee shall have Lessor named as an additional insured on
all such liability policies.
D. Lessor of Regulatory Compliance
Except as otherwise specified herein, as between Lessor and Lessee,
Lessee shall bear the Lessor and expenses relating to keeping the work
environment and equipment in compliance with any and all federal, state, and
local laws and regulations.
4. Obligations of Both Parties
A. Regulatory Compliance
Lessor and Lessee shall comply with all federal, state and local
employment laws and regulations.
B. Unlawful Acts
Neither party hereto shall require any employee leased hereunder to do
any lawful act.
3
C. Withholding Not Permitted
Neither party shall make or effect any deduction or withholding from the
pay of any employee leased hereunder except for deduction or withholdings
required or permitted by law and except for any deduction or withholding to which
the employee consents by a signed writing which specifies the reason for, date
of, and amount of such deduction or withholding. This provision shall not apply to
any applicable per diem related adjustments.
D. Discrimination
The parties agree that as to employment covered by this Agreement, there
will be no unlawful discrimination against any employee or applicant on the basis
of age, race, creed, religion, sex, color, national origin, handicap, veteran status,
union affiliation, actual or perceived disability of employee or applicant or family
member thereof or any other similar legally protected status.
E. Cooperation in Defense
The parties agree to cooperate in the defense of any claim brought
against either or both of the parties on the basis of the relationship created by the
parties hereunder. However, this provision shall in no way alter the
responsibilities of each party as otherwise set forth herein.
F. Employee Notification
Upon inception or termination of this Agreement, Lessor and Lessee shall
immediately inform the employees leased hereunder of the status of the
relationship of the parties hereto.
G. Termination of a Specific Employee Lease
Lessor shall have the exclusive right to terminate employees covered by
this Agreement. Immediately upon notice from Lessee of its decision to no longer
lease any specific Lessor employee, Lessee shall provide notice to Lessor’s
operations department, listing by name, social security number and reason for its
decision. Immediately upon termination of any employee by Lessor for any
reason, Lessor shall provide notice to Lessee's operation department listing the
name, social security number and reason for termination of such employee.
H. Non-Solicitation and No-Hire Covenant
The Lessee understands and agrees that Lessor will expend significant
time and resources in recruiting, qualifying, hiring, training and supervising the
Leased Employees. In recognition thereof, and to ensure Lessor continues such
efforts, the Lessee hereby agrees that during the term of this Agreement, and for
a period of two (2) years following the termination of this Agreement pursuant to
Section 6-H , that it will not, directly or indirectly, by, as or through any affiliate or
related companies, employees, officers, directors, members, or owners, solicit to
hire, or in any way engage, contract or hire, the Leased Employees listed on
Exhibit A hereto.
4
5. Indemnifications
A. Indemnification for Matters relating to Persons who are not
Employees of Lessee.
Lessor shall assume complete and exclusive responsibility for all matters
pertaining to all persons hired by Lessor including, but not limited to, those
leased to Lessee. Lessor shall indemnify Lessee from and against damages
directly resulting from claims or demands of such persons.
B. Indemnification for matters relating to Persons who are not
Employees of Lessor
Lessee shall assume complete and exclusive responsibility for all matters
pertaining to the following categories of persons: all persons (a) hired by Lessee
and (b) on Lessee's payroll. Lessee shall unconditionally indemnify Lessor, its
agents, shareholders, officers, directors, assigns, and representatives, for and
hold them harmless from and against any claims, expenses, fees, settlements,
judgments, losses or damages of whatsoever nature incurred as a result of or
arising from claims or demands relating to such persons.
C. Indemnification for Employee Benefit Matter
Each party shall assume complete and exclusive responsibility for all
matters including, but not limited to, ERISA, tax and COBRA matters, pertaining
to employee welfare or benefit plans sponsored, offered, or administered by such
party. Each party shall unconditionally indemnify the other party, its agents,
shareholders, officers, directors, assigns and representatives for and hold them
harmless from and against any and all claims, expenses, fees, settlements,
judgments, losses or damages of whatsoever nature, incurred as a result of or
arising from claims or demands relating to such plans.
D. Indemnification of Certain Payroll Deductions
Lessee acknowledges and agrees that certain non-tax related deductions
recorded on employee check stubs, including deductions for Lessee sponsored
benefit plans, or certain advances, are for monies due from the employee to
Lessee. Such deductions will be noted on the invoice submitted by Lessor to
Lessee and will be reimbursed to Lessee by deducting them from the gross
amount due Lessor by Lessee. Lessee is solely and exclusively responsible for
such monies. Lessee further agrees to provide certified proof to Lessor upon
request by Lessor that such monies are properly maintained and remitted to the
appropriate persons or entities at the appropriate times or otherwise
demonstrated, to the satisfaction of Lessor, that Lessee has maintained,
deposited or remitted said monies to the appropriate persons or entities at the
appropriate times. Lessee shall unconditionally indemnify Lessor, its agents,
shareholders, non-leased employees, officers, directors, assigns, insurers and
representatives for and hold them harmless from and against any claims,
expenses, fees, settlements, judgments, losses or damages or whatever nature
incurred as a result of or arising from claims or demands relating to such monies.
5
E. Indemnification for Acts or Omissions of Lessee
Lessee agrees that it shall indemnify Lessor for any of Lessee's, or it
agents, acts or omissions that result in damages, cost or expenses for which
Lessor is or may be held liable. Such indemnification shall include
reimbursement to Lessor of all Lessor’s expenditures and prepayment of all
expenditures reasonably expected to be incurred by Lessor.
6. General Provisions
A. Independent Contractor Relationship
Lessor shall be an independent contractor of Lessee and shall not be its
principal, director, agent, master, servant, employer or employee.
B. Third Party Beneficiaries
The parties acknowledge and agree that no parties other than the parties
hereto are intended to benefit hereunder.
C. Direction and Control of Employees
With the advice and counsel of the Lessee, Lessor shall have the right to
direct, control, discipline, terminate, promote, set wages for, reassign and reward
each of the employees it leases to Lessee. Such actions will be governed by
Lessor’s Employee Handbook.
D. Condition for becoming Employee of Lessor
No person shall become an employee of Lessor until Lessor corporate
headquarters has received such person's signed and completed application, 1-9
and W-4 forms, payroll data and payment according to the rate assigned to such
person. The Lessee may not separately negotiate or enter into any agreement
with the Leased Employees during the term of this Agreement and for a period of
two (2) years following this Agreement.
E. Benefit or Welfare Plan
Lessee acknowledges that Lessor has an employee welfare plan available
for its employees. If Lessee does not desire the employees leased hereunder to
enroll in such plan, it acknowledges that Lessor will not offer enrollment to any of
the employees leased hereunder.
F. Limitation of Services
Lessor will only provide those services specified herein and no other
services shall be provided or implied, including without limitation, any strategic,
operational or other business-related decisions with regard to Lessee’s business.
The Lessee will provide any and all equipment required by the Leased
Employees.
G. Right to Inspect Premises
Lessor or agents of Lessor shall have the right but not the obligation to
inspect the premises of Lessee at mutually agreeable times upon request (but in
6
any event within three business days of such request) to make recommendations
pertaining to job safety. It is agreed and understood that Lessor, in either
inspecting or not inspecting the Lessee premises for safety purposes, assumes
neither liability nor responsibility for any unsafe working condition, which may
exist. Should Lessee fail to comply with any recommendations pertaining to job
safety made by Lessor, such failure shall constitute grounds for immediate
termination of this Agreement.
H. Termination
1. Either Lessor or Lessee may immediately terminate this Agreement
in the event of breach by the other of any of the terms of this Agreement.
In addition, Lessor may immediately terminate this Agreement if it, in its
sole discretion, determines that a material adverse change has occurred
in the financial condition of Lessee, or that Lessee is unable to pay its
debts as they become due in the ordinary course of business. Lessee
agrees to notify Lessor of its insolvency or its intention to file bankruptcy or
close its business.
2. The obligation of either party to notify, defend and save harmless
the other under the terms of this Agreement shall continue after the
termination hereof with respect to events occurring prior to such
termination.
3. Upon the termination hereof by either party, both parties agree to
promptly surrender and return to the other party any and all certificates or
binders of insurance previously received from the other party.
I. Business Interruption
Neither party shall be liable to the other for any loss of business or any
other damage, including but not limited to, profits, good will, special, incidental or
consequential damage, which results from performance of each party's
obligations hereunder.
7. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to
affect the validity of any other provision. If any provision of this Agreement is held to be
invalid, the parties agree that the remaining provisions shall be deemed to be in full
force and effect as if they had been executed by both parties subsequent to the
expungement of the invalid provision.
8. No Waiver
The failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving
any such terms and conditions, but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.
7
9. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of _____________.
10. Notices
Unless herein otherwise provided, any notice provided for or concerning this
Agreement shall be in writing and shall be deemed sufficiently given when sent by
certified or registered mail if sent to the respective address of each party as set forth at
the beginning of this Agreement.
11. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the
unsuccessful party in the action shall pay to the successful party, in addition to all the
sums that either party may be called on to pay, a reasonable sum for the successful
party's attorney fees.
12. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding
arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party
shall select one arbitrator and both arbitrators shall then select a third. The third
arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by
the rules of the American Arbitration Association then in force and effect.
13. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and
any prior understanding or representation of any kind preceding the date of this
Agreement shall not be binding upon either party except to the extent incorporated in
this Agreement.
14. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and
signed by each party or an authorized representative of each party.
15. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may
not be assigned or transferred to any other person, firm, corporation, or other entity
without the prior, express, and written consent of the other party.
16. Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute but one and
the same instrument.
8
17. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
__________________________ ________________________
(Name of Lessor) (Name of Lessee)
By:____________________________ By:_______________________________
_________________________ ________________________
(P rinted name & Office in Corporation) (P rinted name & Office in Corporation
_________________________ _________________________
(Signature of Officer) (Signature of Officer)
EXHIBIT A
Leased Employees
1. _________________________
2. _________________________
3. _________________________
4. _________________________
(Acknowledgment form may vary by state)
STATE OF _____________
COUNTY OF ____________
Personally appeared before me, the undersigned authority in and for the said
county and state, on this _____ day of ______________, 20____, within my jurisdiction,
the within named ______________________ (Name of Officer) , who acknowledged
that he is __________________ (Name of Office) of _________________ (Name of
Lessor) , a __________________ (name of state) corporation, and that for and on
behalf of the said corporation, and as its act and deed he executed the above and
foregoing instrument, after first having been duly authorized by said corporation so to
do.
9
________________________________
NOTARY PUBLIC
My Commission Expires:
____________________
STATE OF _____________
COUNTY OF ____________
Personally appeared before me, the undersigned authority in and for the said
county and state, on this _____ day of _________________, 20____, within my
jurisdiction, the within named _____________________ (Name of Officer) , who
acknowledged that he is __________________ (Name of Office) of _______________
(Name of Lessee) , a __________________ (name of state) corporation, and that for
and on behalf of the said corporation, and as its act and deed he executed the above
and foregoing instrument, after first having been duly authorized by said corporation so
to do.
________________________________
NOTARY PUBLIC
My Commission Expires:
____________________
10