SRC-AMY S.B. 374 78(R)    BILL ANALYSIS


Senate Research CenterS.B. 374
By: Williams
Business & Commerce
5-30-2003
Enrolled
DIGEST AND PURPOSE 

Currently, Texas law requires a staff leasing company to take the
responsibility of paying assigned employees' wages, including bonuses,
vacation, and severance pay even if they have not contracted for such
payments. S.B. 374 establishes  a specific definition of "wages" and
requires a client company to pay any wages agreed to between the company
and the employee.  S.B. 374 requires a staff leasing agency to disclose
this information to all its assigned employees. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 91.001, Labor Code, to define "wages."

SECTION 2.  Amends Section 91.032, Labor Code, by amending Subsections (c)
and (d), as follows: 

(c) Requires a client company to pay any wages it has agreed, through
certain formats, to pay and that the staff leasing services has not
contracted to pay, notwithstanding Subsection (a)(2). 

(d) Requires each staff leasing company to disclose, in writing, to each
assigned employee the requirements of Subsection (c). 

SECTION 3.  Amends Section 91.044(a), Labor Code, to exempt a staff
leasing company from being considered the employer of an assigned employee
relating to wages subject to Section 91.032(c) (Contract Requirements) for
the purposes of Chapter 61 (Payment of Wages). 

SECTION 4.  Effective date: September 1, 2003.
            Makes application of this Act prospective.