A bill to amend the Internal Revenue Code of 1986 to clarify the treatment of leased employees, and for other purposes.

Amends the Internal Revenue Code to revise the definition of "leased employee" for pension plan purposes to require: (1) a contract for such services pursuant to which payments are made, directly or indirectly, by the recipient to the leasing organization; (2) the leased employee to perform at least 1,000 hours during a plan year for the recipient; and (3) the leased employee to be under the control of the recipient.

Allows a recipient to elect not to treat a leased employee as such an employee for a plan year if such employee performs services for less than 501 hours during such plan year.

Provides an alternative safe harbor for organizations that are not principally formed to lease employees.