Contract Labor Costs Law and Legal Definition

Contract Labor Costs refers to the payments made by an employer to other firms for the contractual use of their employees. Such employees are hired by employers from employee leasing agencies for performing their own particular works. The leased employees will not be listed in the employers’ pay rolls. Their withholding, depositing, and reporting responsibilities would remain with the contracting agency. The hiring employers would train the contractual employees for their specific tasks and retain them for a period of time, usually specified in the contract.