Texas Senate Bill SB1286

Texas 2013 - 83rd Regular

Caption

Relating to the regulation of professional employer services; authorizing fees.

Impact

The bill's implementation is expected to have a significant impact on Texas labor laws, particularly concerning the coemployment relationship between PEOs and their clients. Clients of PEOs will have to adhere to the guidelines set forth regarding the shared responsibilities for payroll, benefits, and employee welfare. Furthermore, the comprehensive changes aim to streamline the regulatory framework surrounding PEO operations, which could simplify compliance for such entities while ensuring employee protections are upheld.

Summary

SB1286 aims to regulate professional employer organizations (PEOs) by establishing clearer definitions and guidelines for their operations under Texas law. The bill defines critical terms and clarifies the relationships between PEOs, clients, and employees. It includes stipulations for licensing these organizations, regulating the fees they can charge, and ensuring that the benefits provided to employees comply with the state’s regulations. Notably, it allows PEOs to charge fees and regulates how these organizations report to the Texas Workforce Commission.

Contention

Notable discussions surrounding SB1286 have focused on the balance of power between PEOs and local businesses, particularly concerning shared liability and employee rights. Some industry representatives argue that PEOs provide essential benefits and stability to contingent workers, while others express concerns regarding the sufficiency of the protections in place for employees, especially in the areas of job security and benefits administration. The discussions reflect a broader debate on the role of PEOs in the evolving landscape of employment services.