By Moreno of Harris                                   H.B. No. 3342
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the rights of temporary employees.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Title 2, Labor Code, is amended by adding Chapter
 1-5     94 to read as follows:
 1-6                 CHAPTER 94.  RIGHTS OF TEMPORARY EMPLOYEES
 1-7           Sec. 1.01.  DEFINITIONS. In this article:
 1-8           (a)  "Temporary employment service" means person who employs
 1-9     individuals for the purpose of assigning those individuals to the
1-10     clients of the service to support or supplement the client's
1-11     workforce in a special work situation, including:
1-12                 (A)  an employee absence;
1-13                 (B)  a temporary skill shortage;
1-14                 (C)  a seasonal workload; or
1-15                 (D)  a special assignment or project.
1-16           (b)  "Temporary employee" means an individual hired for a
1-17     temporary employment service.
1-18           (c)  "Client company" or "client" means any person, including
1-19     any natural person, sole proprietorship, partnership, limited
1-20     partnership, corporation, limited liability company or joint
1-21     venture, for which a temporary employment service procures or
1-22     provides temporary employees.
1-23           Sec. 1.02.  NOTICES AND DISCLOSURE.
 2-1           (a)  A temporary employment company shall post in its office
 2-2     where temporary employees are required to appear for assignment to
 2-3     work or for payment of compensation, or if it does not have such an
 2-4     office, provide to each temporary employee seeking work, a list of
 2-5     all client companies at which work is available through the
 2-6     temporary employment company, which shall include the following for
 2-7     each job opportunity posted:
 2-8                 (1)  The name and address of the client and the exact
 2-9     address of the work site, directions to the worksite, and a
2-10     telephone number at which a temporary employee can be reached for
2-11     emergency purposes;
2-12                 (2)  The type of job opportunity for temporary
2-13     employees;
2-14                 (3)  A detailed description of the work to be performed
2-15     by the temporary employee, including any requirements for special
2-16     attire, accessories, tools or safety equipment;
2-17                 (4)  The method of computing compensation and the
2-18     amount of compensation and employee benefits to be paid for the
2-19     work, and the overtime rate of pay;
2-20                 (5)  The hourly rate and any other fees or charges paid
2-21     or payable to the temporary employment agency by or on behalf of
2-22     the client with respect to the work to be performed;
2-23                 (6)  If transportation is to be provided to the work
2-24     site, either by temporary services to the client, the cost of the
2-25     transportation, if any, and whether the work site is accessible by
2-26     public or personal transportation and the approximate commute time
 3-1     to and from the work site;
 3-2                 (7)  The duration of the work to be performed by the
 3-3     temporary employee, including the time of the day the work will
 3-4     begin, the time of day the work will end, the schedule of days on
 3-5     which the work will be performed, when the work will end, and
 3-6     whether there is any possibility of overtime work or of extension
 3-7     of the work past the anticipated end date;
 3-8                 (8)  A complete and accurate description of work site
 3-9     hazards to which the temporary employee may become exposed,
3-10     including any hazardous materials which the worker may be required
3-11     to use or handle and any physical conditions or work practices
3-12     which do not comply with applications or work practices which do
3-13     not comply with applicable occupational health and safety
3-14     standards;
3-15                 (9)  Whether a meal is provided, either by the
3-16     temporary employment service or its client, and the cost of the
3-17     meal, if any; and
3-18                 (10)  Whether the temporary employee will be charged
3-19     for using special attire, accessories, tools or safety equipment;
3-20           (b)  Before any temporary employee is given any new job
3-21     assignment regardless it the assignment is with the same
3-22     contracting company shall provide the temporary employee with the
3-23     notice provided above.
3-24           (c)  The notices required to be posted under this section
3-25     shall be written in English and any other language or languages
3-26     that are generally used in the locale or locales of the temporary
 4-1     employment service or its clients.  Copies of all the notices
 4-2     required by this section shall be kept on file for a period of one
 4-3     year by the temporary services companies and shall be made
 4-4     available for inspection by any affected temporary employees, who
 4-5     shall be given copies of such notices, without charge, within 10
 4-6     days of the worker's request thereof.
 4-7           Sec. 1.03.  COMPENSATION.  A temporary employment service
 4-8     shall:
 4-9           (a)  Compensate temporary employees for work performed in the
4-10     form of cash, or commonly accepted negotiable instruments that are
4-11     payable in cash, on demand at a financial institution, and without
4-12     discount regardless of the form or manner of payment;
4-13           (b)  Pay equal compensation and employee benefits to those
4-14     temporary employees who are performing substantially equivalent
4-15     work as employees of the client company where they work and who
4-16     have been employed by the client company for a total of 90 days or
4-17     more, whether of not continuously.  This section shall not apply to
4-18     a temporary employee who earns more pay than substantially
4-19     equivalent client company employees, unless such temporary employee
4-20     has replaced a client company employee who is on strike, or who has
4-21     been locked out by the client company subject to a labor dispute;
4-22           (c)  Subject to Subsection (b), compensate temporary
4-23     employees at or above the federal or state minimum wage, whichever
4-24     is higher, in no event shall any deductions, other than those
4-25     permitted by federal or state law, bring the worker's pay below
4-26     minimum wage for the hours worked;
 5-1           (d)  At the time of each payment of wages, furnish each
 5-2     worker a written itemized statement showing in detail each
 5-3     deduction made from such wages, and a written notification, which
 5-4     may be included on the worker's statement of earnings and
 5-5     deductions, specifying the hourly rate and any other fees or
 5-6     charges paid or payable to the temporary employment agency by or on
 5-7     behalf of the recipient of the worker's services with respect to
 5-8     the hours compensated by that wage payment; and
 5-9           (e)  Provide each worker with an annual earnings summary
5-10     within a reasonable period of time after the end of the preceding
5-11     calendar year, but no later than February 1.
5-12           Sec. 1.04.  PROHIBITED CHARGES AND DEDUCTIONS.  No temporary
5-13     employment service shall charge a temporary employee:
5-14           (a)  For safety equipment, clothing, tools, accessories, or
5-15     any other items required by the nature of the work either by law,
5-16     custom, or as a requirement of the client company;
5-17                 (1)  This subsection shall not preclude the temporary
5-18     employment service from charging the temporary employee the market
5-19     value of items temporarily provided to the worker by the temporary
5-20     employment service, in the event that the worker willfully fails to
5-21     return such items to the company, but no charge may be made for
5-22     items damaged through ordinary use or lost through no fault of the
5-23     temporary employee;
5-24                 (2)  For items other than those referenced in this
5-25     subsection, which the temporary employment service makes available
5-26     for purchase, the day laborer shall be charged no more than the
 6-1     actual cost of the item to the labor pool, or market value,
 6-2     whichever is less;
 6-3           (b)  More than a reasonable amount to transport a worker to
 6-4     or from the designated worksite, but in no event shall the amount
 6-5     exceed the prevailing rate for public transportation in the
 6-6     geographic area;
 6-7           (c)  For directly or indirectly chasing a worker's check; or
 6-8           (d)  More than the actual cost of providing lunch, if lunch
 6-9     is provided at the worksite by the temporary employment service,
6-10     but in no case shall the purchase of lunch be a condition of
6-11     employment.
6-12           Sec. 1.05.  PROTECTIONS FOR TEMPORARY EMPLOYEES.
6-13           (a)  A temporary employment service that operates an office
6-14     where temporary employees are required to appear for assignment to
6-15     work or for payment of compensation shall provide facilities for a
6-16     worker waiting at the labor hall for a job assignment that include:
6-17                 (1)  Restroom facilities;
6-18                 (2)  Drinking water; and
6-19                 (3)  Sufficient seating.
6-20           (b)  A temporary employment service shall insure any motor
6-21     vehicle owned or operated by the company and used for the
6-22     transportation of workers.
6-23           (c)  No temporary employment service shall restrict the right
6-24     of a temporary employee to accept a permanent position with a
6-25     client company to whom the laborer is referred for temporary work,
6-26     or to restrict the right of such a client to offer such employment
 7-1     to a temporary employee of the temporary employment service.
 7-2     However, nothing shall restrict the temporary employment service
 7-3     from receiving a reasonable placement fee from the client.
 7-4           (d)  A temporary employment service's workers' compensation
 7-5     insurance premiums shall be determined and paid based on the
 7-6     experience rating of the client company for which the temporary
 7-7     employee performs services, provided the client company has
 7-8     sufficient workers' compensation premium volume to be experience
 7-9     rated, otherwise the premiums shall be the rate approved for an
7-10     employer that cannot be experience rated.
7-11           (e)  No temporary employment service shall make or give, or
7-12     cause to be made or given, any false, misleading, or deceptive
7-13     advertisements, information or representations concerning the
7-14     services, compensation or benefits, or work opportunities that the
7-15     company will provide to temporary employees.
7-16           (f)  All advertisements of a temporary employment service
7-17     shall contain the correct name of the temporary employment service
7-18     and one of the following:
7-19                 (1)  The street address of the company's place of
7-20     business; or
7-21                 (2)  The correct telephone number of the company at its
7-22     place of business.
7-23           (g)  A temporary employment service or a client company shall
7-24     not discharge, reduce the compensation of or otherwise discriminate
7-25     against any employee for making a complaint of a violation of this
7-26     title, participating in any of its proceedings under this title,
 8-1     using any civil remedies to enforce his or her rights, or otherwise
 8-2     asserting his or her rights under this title.
 8-3           Sec. 1.06.  ENFORCEMENT.
 8-4           (a)  Any person who violates any provision of this title is
 8-5     guilty of a misdemeanor.  The Attorney General, any district
 8-6     attorney, or any city attorney may prosecute misdemeanor actions.
 8-7           (b)  Actions for violation of this title, including, but not
 8-8     limited to, equity proceedings to restrain and enjoin such a
 8-9     violation, may be instituted by the Attorney General, any district
8-10     attorney, or any city attorney.  This section shall not be deemed
8-11     to prohibit the enforcement by any person of any right provided by
8-12     this or any other law.
8-13           (c)  Any person who is injured by any violation of this title
8-14     may bring an action for the recovery of damages, an equity
8-15     proceeding to restrain and enjoin those violations, or both.  The
8-16     amount awarded may be up to three times the damages actually
8-17     incurred.  If the plaintiff prevails, the plaintiff shall be
8-18     awarded a reasonable attorney's fee and costs.  If the court
8-19     determines that the breach or violation was willful, by clear and
8-20     convincing evidence, the court, in its discretion, may award
8-21     punitive damages in addition to the amounts set forth above.
8-22           (d)  The provisions of this title are not exclusive and do
8-23     not relieve the parties subject to this title from the duty to
8-24     comply with all other applicable laws.
8-25           (e)  The remedies provided in this title are not exclusive
8-26     and shall be in addition to any other remedies or procedures
 9-1     provided in any other law.
 9-2           (f)  Any waiver by a temporary employee of the provisions of
 9-3     this title shall be deemed contrary to public policy and shall be
 9-4     void and unenforceable.  Any attempt by a temporary employment
 9-5     service or its client company to have a temporary employee waive
 9-6     rights given by this title shall constitute a violation of this
 9-7     title.
 9-8           Sec. 1.07.  SEVERABILITY.  If any section or any portion of a
 9-9     section of this title is declared illegal, invalid or inoperative,
9-10     in whole or in part, by any court of competent jurisdiction, the
9-11     remaining section and all portions not declared illegal, invalid or
9-12     inoperative shall remain in full force or effect, and no such
9-13     determination shall invalidate the remaining sections or portions
9-14     of the sections of this title.
9-15           Sec. 1.08.  UNEMPLOYMENT COMPENSATION.  (a)  An individual
9-16     that is a temporary employee for a temporary help firm will be
9-17     deemed to have voluntarily quit employment without good cause and
9-18     thus disqualified for unemployment compensation benefits if the
9-19     temporary employee did not contact the temporary help firm for
9-20     reassignment upon completion of an assignment.  Failure to contact
9-21     the temporary help firm will not be deemed a voluntary quit without
9-22     good cause unless the temporary employee has been advised of the
9-23     obligation to contact the temporary help firm upon completion of
9-24     assignments and that unemployment benefits may be denied for
9-25     failure to contact the temporary help firm.  Failure to contact the
9-26     temporary help firm will not be deemed a voluntary quit without
 10-1    good cause if the temporary help firm has violated, with respect to
 10-2    such employee, a provision of state or federal law for the
 10-3    protection of employees or regulating temporary employment.
 10-4          (b)  When a temporary employee for a temporary help firm
 10-5    completes an assignment with any third party, and has indicated his
 10-6    or her availability to accept a new assignment to the temporary
 10-7    help firm and is not offered a new assignment, the employee is
 10-8    eligible for benefits when, for a period of five regular working
 10-9    days, he or she has been offered no new assignment by the temporary
10-10    help firm substantially equivalent to the completed assignment in
10-11    compensation, benefits, working conditions and accessibility, and
10-12    has accepted no other employment.  After the five-day period, the
10-13    temporary employee is eligible for the benefits authorized under
10-14    this part dating from the first day he or she had no assignment.
10-15          Sec. 1.09.  SALES TAX ON TEMPORARY SERVICES.  There is levied
10-16    a tax at the rate equal to the rate of tax on the sale of tangible
10-17    personal property at retail by the provisions of the gross receipts
10-18    or gross proceeds of each sale at retail of services rendered by
10-19    persons operating a temporary employee services firm which assigns
10-20    its employees to perform services to others with the understanding
10-21    that the temporary employee's services will be terminated at a
10-22    completions of the assigned tasks or functions or time period.
10-23          Sec. 1.10.  STRIKE-BREAKERS.  A temporary employment service
10-24    shall not:
10-25          (a)  procure workers to replace employees who are not working
10-26    due to a labor dispute,
 11-1          (b)  send or refer workers to any worksite where a labor
 11-2    dispute is in progress,
 11-3          (c)  send or refer workers to a client company involved in a
 11-4    labor dispute, for work that would normally be performed by the
 11-5    client company's employees, or
 11-6          (d)  send or refer workers to a client company for work that
 11-7    the client company is performing because of the existence of a
 11-8    labor dispute.