New York Consolidated Laws

N.Y. Labor Law § 916 (2026)

Definitions

✓ current as of May 2026

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§ 916. Definitions. As used in this article:
  1. "Client" means a person who enters into a professional employer
agreement with a professional employer organization.
  2. "Person" means an individual, an association, a company, a firm, a
partnership, a corporation, or any other form of legally recognized
entity.
  3. "Professional employer agreement" means a written contract whereby:
  (a) A professional employer organization expressly agrees to co-employ
all or a majority of the employees providing services for the client;
  (b) The contract is intended to be on-going rather than temporary in
nature;
  (c) Employer responsibilities for worksite employees, including those
of hiring, firing and disciplining, are expressly allocated by and
between the professional employer organization and the client in the
agreement; and
  (d) The professional employer organization expressly assumes the
rights and responsibilities as required in section nine hundred
twenty-two of this article.
  4. "Professional employer organization" means any person whose
business is entering into professional employer agreements with clients.
In determining whether the professional employer organization employs
all or a majority of the employees of a client, any person employed
pursuant to the terms of the professional employer agreement after the
initial placement of client employees on the payroll of the professional
employer organization shall be included. Temporary help firms and
employment agencies, as defined in article eleven of the general
business law, shall not be deemed to be professional employer
organizations for purposes of this article.
  5. "Temporary help firm" means a business which recruits and hires its
own employees, and assigns those employees to perform work at or
services for other organizations, to support or supplement the other
organization's workforce, or to provide assistance in special work
situations such as, but not limited to, employee absences, skill
shortages, seasonal workloads, or to perform special assignments or
projects. A temporary help firm shall not be deemed to be a professional
employer organization for the purposes of this article.
  6. "Worksite employee" means a person having an employment
relationship with both the professional employer organization and the
client. Such term may also include the client's officers, directors,
shareholders or partners to the extent such persons act as operational
managers or perform services for the client.

Notes of Decisions

Cited in 10 cases (5 in the last 5 years), 2007–2026 · leading case: Matter of Gaylord v. Buffalo Transp., Inc., 2021 NY Slip Op 03644 (N.Y. App. Div. 2021).

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Matter of Gaylord v. Buffalo Transp., Inc., 2021 NY Slip Op 03644 (N.Y. App. Div. 2021). · cites it 9× “(hereinafter SPLI) — a professional employer organization (hereinafter PEO) ( see Labor Law § 916 [3], [4]). Under the agreement, Buffalo Transportation outsourced certain human resources responsibilities for some of its employees to SPLI, obligating SPLI to perform duties…”

Crespo v. State, 41 Misc. 3d 807 (2013). · cites it 3× “” (Labor Law § 916 [3].) Labor Law § 922, referenced in the above requirements, provides that a PEO must have a written agreement with the client in which the PEO (i) “reserves a right of direction and control over the worksite employees,” provided the client maintains “such…”

Matter of Brown v. Buffalo Transp., Inc., 2023 NY Slip Op 06422 (N.Y. App. Div. 2023). · cites it 2× “(hereinafter SPLI), a registered professional employment organization (hereinafter PEO) ( see Labor Law § 916 [3], [4]). Pursuant to the terms of that agreement, SPLI provided workers' compensation coverage for all leased employees, which it obtained through State National…”

In re RobsonWoese, Inc., 42 A.D.3d 774 (N.Y. App. Div. 2007). “In the case of a PEO, it — and not the “client” company (see Labor Law § 916 [1]) — is the party responsible for making such contributions (see Labor Law § 923).”

Matter of Rodriguez v. Sky Materials Corp., 2026 NY Slip Op 03342 (N.Y. App. Div. 2026). · cites it 4× “, 238 AD3d 1444, 1445-1446 [3d Dept 2025], quoting Labor Law § 922 [3] [c]; see Labor Law § 916 [3] [a], [d]; Matter of Gaylord v Buffalo Transp.”

Matter of Cardona v. DRG Constr. LLC, 2021 NY Slip Op 04527 (N.Y. App. Div. 2021). · cites it 3× “worksite employees" (Labor Law § 922 [3] [c]) who "hav[e] an employment relationship with both the [PEO] and the client" (Labor Law § 916 [6]). The PEO is then, with its client, "considered [the] employer for the purpose of coverage under the [W]orkers' [C]ompensation [L]aw"…”

Matter of Fonseca v. Platinum Carpentry Inc., 2025 NY Slip Op 03231 (N.Y. App. Div. 2025). · cites it 3× “Platinum, in turn, had a contract with Cornerstone Underwriters, LLC — a professional employer organization (hereinafter PEO) ( see Labor Law § 916 [3], [4]) — to provide workers' compensation coverage to employees leased from Cornerstone to Platinum, and such coverage was…”

In re Avalon Gardens Rehab. & Health Care Ctr., 118 A.D.3d 1085 (N.Y. App. Div. 2014). “A review of the contract between the facilities and Budget confirms that Budget served as a professional employer organization as defined in the statute (see Labor Law § 916) and that Budget was responsible for unemployment insurance contributions for each of its employees each…”

Cooper Square Hotel, LLC v. Assured Source Nat'l, LLC, 21 Misc. 3d 702 (N.Y. Sup. Ct. 2008). “…organization expressly agrees to co-employ all or a majority of the employees providing services for the client.” (Labor Law § 916 [3] [a].)”

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