By:  Williams                                                     S.B. No. 374
	(In the Senate - Filed February 5, 2003; February 11, 2003, 
read first time and referred to Committee on Business and Commerce; 
March 5, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 9, Nays 0; March 5, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 374                                    By:  Armbrister

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. 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.
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