"Leased" Worker Not Barred by Worker's Comp

Personal Injury Lawyer Austin Texas

Jan 6, 2013 — by Jeff Mundy
Tags: Personal Injury

 

Synergy contends that the evidence established that Alliance Savings Co., Inc. was a licensed staff leasing company under the SLSA. As defined in the SLSA, a "[l]icense holder" is "a person licensed under this chapter to provide staff leasing services." Section 91.001(11). A "[c]lient company" is "a person that contracts with a license holder and is assigned employees by the license holder under that contract." Id. § 91.001(3). Under the SLSA, a license holder may elect to obtain workers' compensation insurance coverage for its assigned employees. Id. § 91.042(a). If the license holder elects to obtain such coverage, the policy also covers the client company. Id. §§ 91.006(a), 91.042(c); Garza v. Exel Logistics, Inc., 161 S.W.3d 473, 478 (Tex. 2005); Vega v. Silva, 223 S.W.3d 746, 748 (Tex. App.-Dallas 2007, no pet.). Under Section 91.042(c) of the SLSA, the license holder and the client company are considered to be co-employers for workers' compensation insurance purposes. If a license holder elects to obtain workers' compensation insurance, the license holder and the client company are both protected by the exclusive remedy provision of the TWCA. Section 91.042(c); Tex. Workers' Comp. Ins. Fund v. Del Indus., Inc., 35 S.W.3d 591, 594 (Tex. 2000); Vega, 223 S.W.3d at 748.

Synergy did not offer evidence that Alliance Savings Co., Inc. was a licensed staff leasing services company. Synergy cannot, therefore, claim the benefit of Alliance Savings Co., Inc.'s workers' compensation insurance. Hodges v. Tex. TST, Inc., 303 S.W.3d 880, 882 (Tex. App.-Eastland 2009, no pet.). The SLSA provides that a license holder and its client company are co-employers for workers' compensation insurance purposes. Section 91.042(c). Co-employer status of a client company depends on the staff leasing services company being a license holder. Because Synergy failed to establish that Alliance Savings Co., Inc. was a license holder, Synergy and Alliance Savings Co., Inc. could not be co-employers of Thompson under the SLSA, and Synergy was not protected by the exclusive remedy provision in the TWCA by virtue of the SLSA. See id.

Synergy Management Group LLC v. Thompson, (Tex. App. - Eastland, 2012).

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