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Willey’s introduction, id. at 2, to his book explains the
operation of conventional employee leasing arrangements:
In employee leasing arrangements, two legally
separate employers share some, or all, of the employer
responsibilities with the same employees. Leased-
employees are employed by the leasing employer, which
pays their wages and benefits, but whose employees also
report for work at the utilizing business. There their
work activities are directed by the utilizing employer.
These workers do the work of the business of the
leasing employer and the business of the utilizing
employer. The employer responsibilities may be
allocated between the employers, by mutual agreement.
* * *
As Dr. Willey explains, the employer responsibilities may be
allocated between the employers, by mutual agreement. Here,
however, notwithstanding the written employee leasing agreements,
none of the responsibilities changed. There is no indication
that, as provided in the agreements, Machise provided the
partnerships with estimates of the number of employees or
contractors it would need to carry on its business. Nor is there
any indication that the partnerships undertook in any substantive
way to provide Machise with the employees, independent
contractors, equipment, or antecedent biographical information
called for in the agreement. We have seen no instance in which
the partnerships undertook to "control and direct the performance
of the services of the individuals", despite the explicit
reservation of the right to do so contained in each of the
agreements. Nor have we seen any attempt by the partnerships
either to "instruct each individual as to his work hours and the
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