Regardless of the designation given to this group of workers, the main legal issue of concern to employers is whether or not a particular temporary or leased employee is one of their “employees” for purposes of various employment laws. The fact that a certain employee or position has been designated as temporary typically does not relieve the employer from any obligations. Determining the employer of the temporary employee is also not a simple matter and may vary depending on the specific law under consideration. In general, courts tend to look at the right of control over the daily activities of the employee. The company that exercises the right of control is the employer. Other factors that may be considered include which company pays the employee wages, which company the employee considers to be the employer and which company has the power to modify employment conditions. In many situations, the law may even apply to two entities, holding both liable as joint employers.
Texas has an Act governing staff leasing services, an Act governing temporary common worker and an Act governing temporary employment services.