Examining Joint-Employer Liability For Texas Workers' Compensation Retaliation Claims

The question of who provides workers' compensation insurance in employer-staffing company relationships is handled in different ways. Frequently, the staffing company will provide workers' compensation coverage for all individuals provided to the client company. Issues sometimes arise related to the client company's and staffing company's liability under a joint-employer theory for adverse employment actions involving workers provided by the staffing company to the employer. A Texas appellate court recently examined the scope of joint-employer liability in the workers' compensation retaliation context.

Background

An employer/client company had contracted with various staffing (non-professional employer organization (PEO)) agencies to supply temporary contract personnel. The client company provided workers' compensation coverage for its permanent employees. The staffing company provided workers' compensation coverage for the temporary workers assigned to work with