When companies partner with an Employer of Record (EOR), they’re doing more than outsourcing payroll or onboarding logistics. They’re engaging a strategic partner that assumes key legal and administrative responsibilities, especially those tied to risk, compliance, and employee protection. This includes managing unemployment insurance claims and workers’ compensation coverage for employees brought on through the EOR.

For companies navigating multi-state operations, growing contingent teams, or looking to reduce internal HR burden, these responsibilities are critical pillars of operational continuity and legal compliance.

What an EOR covers

When you onboard workers through Maslow’s Employer of Record model, we become the legal employer for tax, wage, and insurance purposes. This legal framework means that Maslow — not your internal HR team — is responsible for:

• Filing and managing unemployment insurance claims
• Administering workers’ compensation claims
• Maintaining active coverage across all required jurisdictions
• Coordinating follow-through and documentation for claims resolution

These coverages are handled through Maslow’s insurance policies, designed not just to protect our business but also to safeguard the continuity of our client relationships. Clients don’t need to add workers to their own policies, navigate claim filings, or maintain compliance state by state. We handle that behind the scenes.

This is particularly valuable when managing a contingent workforce, where traditional employment structures may not apply and classification rules vary widely across state lines.

Client responsibilities still apply

While Maslow manages the administration and insurance coverage, clients still play a vital role. One of the most important areas of shared responsibility is workplace safety.

If an employee placed through Maslow is working on-site — whether at a warehouse, studio, office, or event venue — the client remains responsible for providing a safe, compliant working environment. A poorly maintained or hazardous workspace can create liability exposure, even when the worker is legally employed through an EOR.

Maslow advises all clients to maintain robust safety protocols, ensure proper training, and adhere to local health and safety regulations. A strong safety culture protects your people and limits the risk of disputes or claims that could impact your operations — or ours.

Managing risk the right way

Partnering with an Employer of Record is not about shifting all liability. It’s about building a shared risk structure that allows each party to focus on their core competencies. We manage claims. You manage environments. Together, we reduce complexity and protect workforce continuity.

For companies hiring in new states, re-engaging laid-off employees, or managing a dynamic mix of full-time and contingent talent, this structure delivers operational agility without sacrificing compliance.

An Employer of Record doesn’t just help you onboard workers — it helps you manage the real-world responsibilities that come with employing them. That’s what makes it a smart choice for today’s evolving workforce.