S.B. No. 374




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.  Subsection (a), Section 91.044, Labor Code, is 
amended to read as follows:
	(a)  A license holder is the employer of an assigned employee 
for purposes of Subtitle A, Title 4, and, except for wages subject 
to Section 91.032(c), for purposes of Chapter 61.  In addition to 
any other reports required to be filed by law, a license holder 
shall report quarterly to the Texas Workforce Commission on a form 
prescribed by the Texas Workforce Commission the name, address, 
telephone number, federal income tax identification number, and 
classification code as described in the "Standard Industrial 
Classification Manual" published by the United States Office of 
Management and Budget of each client company.
	SECTION 4.  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.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 374 passed the Senate on 
March 20, 2003, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 374 passed the House on 
May 23, 2003, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor