Texas Unemployment Law - Staff Leasing Companies

When a company pays you through a staff leasing company, the name of the leasing company is on your paycheck or pay stub, and the leasing company is your employer. That means you must follow the staff leasing company’s rules, including those on requesting and completing assignments.
 
Q. Do the same laws apply to work for staff leasing companies that apply to work for temporary help agencies?
 
Yes and no. Different laws govern staff leasing companies. For example, if you work for a staff leasing company, you must still contact the staff leasing company by the next business day for a new assignment when your current assignment ends. However, you do not have to wait three business days before applying for benefits, as you must if you work for a temporary help agency.
 
Q. How will I know when to contact the staff leasing company?
 
When your assignment ends, the staff leasing company, or the business for which you completed the assignment, must give you a written notice advising you to contact the leasing company for another assignment.

Texas Unemployment Law - How Temporary Work Affects Your Benefits

Question: If I am working for a temporary agency, what do I need to do to make sure I can obtain unemployment benefits when the work ends?

Short Answer: Ask for a new assignment right away and wait 3 business days before applying for benefits.

Explanation:

If you are considering working for a temporary help agency, you should know that special rules could affect whether you receive unemployment benefits.

To be eligible for benefits, each time you complete an assignment for a temporary help agency you must:
  • Contact the temporary help agency in the manner it specifies, such as by e-mail, phone, or in person, by the next business day.
  • Give the temporary help agency three business days after your last assignment ends to offer you a new assignment before you apply for benefits. 
If your last work is with a temporary help agency, the Texas Workforce Commission (TWC) cannot pay you benefits, if you apply for benefits before seeking a new assignment and waiting three business days for an assignment.
 
The rules apply whether you are a full-time or part- time worker for the temporary help agency.
 
Temporary help agencies are supposed to explain that:
  • You must contact the temporary help agency immediately after the completion of each assignment to receive another assignment; and
  • You may not qualify for unemployment benefits if you do not follow all of the temporary help agency’s procedures.