Temporary Common Worker Employers
Deregulation of Temporary Common Worker Employers
Effective September 1, 2017, companies employing temporary common workers in Texas are no longer required to obtain authorization from the state to do so. In 2017, the Texas Legislature passed Senate Bill 2065 that eliminates the requirement for a state Temporary Common Worker Employer license.
Justification Adoption for Repeal of Administrative Rules
January 5, 2018
The Texas Commission of Licensing and Regulation adopted the repeal of existing rules regarding the Temporary Common Worker Employers program (16 Texas Administrative Code, Chapter 64, §§64.1, 64.10, 64.20, 64.70, 64.72 and 64.80).
The adoption justification may be viewed on TDLR’s web site.
Frequently Asked Questions
1. What is a Temporary Common Worker Employer?
A Temporary Common Worker Employer provides manual labor workers to employers. The workers are typically laborers hired on a daily basis and are commonly referred to as "day laborers." As an example, the construction industry hires many common workers via Temporary Common Worker Employers.
2. Who does the Temporary Common Worker Employer statute apply to?
Chapter 92, Labor Code applies to a person who operates a labor hall and provides common workers to employers of common workers.
3. Who is a temporary common worker?
An individual who performs labor involving physical tasks that do not require:
- a particular skill,
- training in a particular occupation, craft, or trade, or
- practical knowledge of the principles or processes of an art, science, craft, or trade
4. Who is exempt from the Temporary Common Worker Employer statute?
The Act does not apply to:
- a temporary skilled labor agency;
- a professional employer organization;
- an employment counselor;
- a talent agency;
- a labor union hiring hall;
- a temporary common worker employer that does not operate a labor hall;
- a labor bureau or employment office operated by a person for the sole purpose of employing an individual for the person's own use; or
- an employment service or labor training program provided by a governmental entity.
While the above entities are exempt from the Temporary Common Worker Employer statute, these entities may be required to hold a different type of license under a different law.
Licensing and Authority to Operate
1. Who is required to hold a license?
Companies employing temporary common workers in Texas do not require authorization or a license from the state. The Texas Legislature passed Senate Bill 2065 to eliminate the requirement for a state Temporary Common Worker Employer license. Chapter 92, Labor Code contains standards of conduct and practice requirements for temporary common worker employers. Common workers and employers of common workers are still not required to obtain a license.
2. Do I need authorization from a governmental subdivision to operate under Chapter 92, Labor Code?
A person may operate as a temporary common worker employer unless prohibited by a governmental subdivision. "Governmental subdivision" means a municipality, county, special district, zone, authority, or other entity that is chartered, created, or authorized by this state. See Senate Bill 2065 for more details .