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California Labor Code Section 201.3

Legal Research Home > California Laws > Labor Code > California Labor Code Section 201.3

201.3.  (a) For purposes of this section, the following definitions
apply:
   (1) "Temporary services employer" means an employing unit that
contracts with clients or customers to supply workers to perform
services for the clients or customers and that performs all of the
following functions:
   (A) Negotiates with clients and customers for matters such as the
time and place where the services are to be provided, the type of
work, the working conditions, and the quality and price of the
services.
   (B) Determines assignments or reassignments of workers, even if
workers retain the right to refuse specific assignments.
   (C) Retains the authority to assign or reassign a worker to
another client or customer when the worker is determined unacceptable
by a specific client or customer.
   (D) Assigns or reassigns workers to perform services for clients
or customers.
   (E) Sets the rate of pay of workers, whether or not through
negotiation.
   (F) Pays workers from its own account or accounts.
   (G) Retains the right to hire and terminate workers.
   (2) "Temporary services employer" does not include any of the
following:
   (A) A bona fide nonprofit organization that provides temporary
service employees to clients.
   (B) A farm labor contractor, as defined in subdivision (b) of
Section 1682.
   (C) A garment manufacturing employer, which, for purposes of this
section, has the same meaning as "contractor," as defined in
subdivision (d) of Section 2671.
   (3) "Employing unit" has the same meaning as defined in Section
135 of the Unemployment Insurance Code.
   (4) "Client" and "customer" means the person with whom a temporary
services employer has a contractual relationship to provide the
services of one or more individuals employed by the temporary
services employer.
   (b) (1) Except as provided in paragraphs (2) to (5), inclusive, if
an employee of a temporary services employer is assigned to work for
a client, that employee's wages are due and payable no less
frequently than weekly, regardless of when the assignment ends, and
wages for work performed during any calendar week shall be due and
payable not later than the regular payday of the following calendar
week. A temporary services employer shall be deemed to have timely
paid wages upon completion of an assignment if wages are paid in
compliance with this subdivision.
   (2) If an employee of a temporary services employer is assigned to
work for a client on a day-to-day basis, that employee's wages are
due and payable at the end of each day, regardless of when the
assignment ends, if each of the following occurs:
   (A) The employee reports to or assembles at the office of the
temporary services employer or other location.
   (B) The employee is dispatched to a client's worksite each day and
returns to or reports to the office of the temporary services
employer or other location upon completion of the assignment.
   (C) The employee's work is not executive, administrative, or
professional, as defined in the wage orders of the Industrial Welfare
Commission, and is not clerical.
   (3) If an employee of a temporary services employer is assigned to
work for a client engaged in a trade dispute, that employee's wages
are due and payable at the end of each day, regardless of when the
assignment ends.
   (4) If an employee of a temporary services employer is assigned to
work for a client and is discharged by the temporary services
employer or leasing employer, wages are due and payable as provided
in Section 201.
   (5) If an employee of a temporary services employer is assigned to
work for a client and quits his or her employment with the temporary
services employer, wages are due and payable as provided in Section
202.
   (6) If an employee of a temporary services employer is assigned to
work for a client for over 90 consecutive calendar days, this
section shall not apply unless the temporary services employer pays
the employee weekly in compliance with paragraph (1) of subdivision
(b).
   (c) A temporary services employer who violates this section shall
be subject to the civil penalties provided for in Section 203, and to
any other penalties available at law.
   (d) Nothing in this section shall be interpreted to limit any
rights or remedies otherwise available under state or federal law.


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Last modified: March 17, 2014