This template is a Professional Employer Organization (PEO) Client Service Agreement that governs the relationship between a client company and a PEO. Its application is limited to situations wherein the PEO handles human resources functions for a client company. It does not apply if the PEO also acts as a temporary staffing or an employee leasing agency. Under the PEO arrangement the PEO assumes responsibility for payroll, benefits, and other human resources functions. The company, for its part, typically retains control over the work and workers and is normally considered an employer. PEOs do not usually recruit or screen workers. This Professional Employer Organization (PEO) Client Service Agreement is intended for private employers. It complies with applicable federal law and does not address all potential state law distinctions; thus, you should check any relevant state and local laws. It contains drafting notes, alternate clauses, and optional clauses. For information on state laws regarding PEOs, see Professional Employer Organization and Employee Leasing Agencies State Law Survey.