Texas House Bill HB736

Texas 2015 - 84th Regular

Caption

Relating to the treatment of a landman as an independent contractor.

Impact

The amendment highlights a critical distinction regarding worker classification in Texas, particularly affecting those involved in the oil and gas industry. By affirming the independent contractor status of landmen, HB 736 provides legal clarity which may influence tax liabilities and benefits typically associated with employee status. This could lead to a more flexible employment framework for companies reliant on landman services, potentially simplifying their operational processes within the mineral rights negotiation sphere.

Summary

House Bill 736 amends the Texas Labor Code concerning the classification of landmen as independent contractors rather than employees. The bill clarifies that services performed by an individual identified as a landman—specifically, engaging in negotiations surrounding mineral rights acquisition or business agreements for mineral exploration—do not qualify as 'employment' under the state labor regulations. This legislative change seeks to establish that landmen working under written contracts, where their compensation is tied solely to the completion of specific tasks rather than hours worked, are viewed legally as independent contractors.

Contention

While the bill is primarily presented as a clarification of existing law, it could spur debate regarding workers' rights and the implications of classifying landmen as independent contractors. Advocates argue that this change will further promote business efficiency and decrease costs associated with employee benefits, while critics may raise concerns over job security and the lack of employee protections for landmen. The potential for exploitation and the dilution of workers' rights in the minerals extraction field might also be highlighted in discussions surrounding this bill.