78R4255 PB-D

By:  Flores                                                       H.B. No. 3060


A BILL TO BE ENTITLED
AN ACT
relating to the payment of certain wages by staff leasing services companies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 91.001, Labor Code, is amended by adding Subdivision (17) to read as follows: (17) "Wages" means: (A) compensation for labor or services rendered by an assigned employee, whether computed on a time, task, piece, or other basis; and (B) vacation pay, holiday pay, sick leave pay, parental leave pay, severance pay, bonuses, commissions, stock option grants, or deferred compensation owed to an assigned employee under a written agreement. SECTION 2. Section 91.032, Labor Code, is amended by adding Subsections (c) and (d) to read as follows: (c) Notwithstanding Subsection (a)(2), a client company is solely obligated to pay any wages for which: (1) obligation to pay is created by an agreement, contract, plan, or policy between the client company and the assigned employee; and (2) the staff leasing services company has not contracted to pay. (d) Each staff leasing services company shall disclose the requirements of Subsection (c) in writing to each assigned employee. SECTION 3. This Act takes effect September 1, 2003, and applies only to a contract between a staff leasing services license holder and a client company entered into on or after that date. A contract entered into before that date is governed by the law in effect on the date the contract was entered into, and the former law is continued in effect for that purpose.