78R4255 PB-D

By:  Williams                                                     S.B. No. 374



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.