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Can a construction labor staffing company file a mechanics lien in Texas?

Hi there - I run a construction labor staffing business in Houston, TX. We're curious as to whether we have the ability to lien a GC as we are a degree of separation removed from the GC. Would love to speak with one of you to determine if Levelset could be right for us. Thanks, Moody moody@buildforce.com (713) 824-3994

4 replies

May 15, 2020

Assuming you furnish labor to a subcontractor on the Project, you should be entitled to file a lien. You should also investigate whether a payment bond exists for the project.

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May 15, 2020

Hi Moody, Per the holding in Reliance National Indemnity Co. v. Advanced Temporaries, Inc., 227 S.W.3d 46 (Tex. 2007), a temporary-employment agency furnished personnel to a subcontractor on a project, which personnel were directly involved in laboring on the project and the court found that the agency was the “employer” and thus provided labor to the project, entitling it to mechanic’s lien status. So, in short, I think it is very likely that you have lien rights so long as you move quickly and satisfy the requisite notice and lien filing requirements under Texas law.

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May 15, 2020

Hello, You can file a lien on a project for the amount your company is owed for labor provided to the project. If you work directly for the GC you first notice will need to go out the 15th day of the 3rd month from the first month you are owed money for. If you are providing labor to a subcontractor your first notice needs to go out the 15th day of the second month you are owed for. Feel free to reach out if you have additional questions. Karalynn Cromeens Managing Partner Tel: (713) 715-7334 www.TheCromeensLawFirm.com Privileged Attorney-Client Communication and/or Attorney Work Product: The above message and attachments, if any, are confidential and may be protected by the attorney/client privilege and/or attorney work product. The unauthorized disclosure, use, dissemination or copying of this e-mail, or any information it contains, by anyone other than the intended recipient, is prohibited. If you are not the named recipient, or have otherwise received this communication in error, delete it immediately and notify the sender at the office number listed above or by return email.

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May 22, 2020

Moody, A person who labors or furnishes labor for construction or repair of an improvement in Texas has a right to a mechanic's and materialmen's lien, when such labor is for the direct prosecution of the work for construction or repair of a building. The person may have a contract with the owner, the contractor, or a subcontractor. Person includes an entity which takes on the legal responsibilities of an employer if the entity furnishes the labor of its employees for work on an improvement. The factors to consider in determining if a temporary labor company furnished labor in the direct prosecution of work include: (1) the temporary employment agency's involvement in selecting and screening the workers for hire; (2) the use by the agency of its own criteria for hiring the workers; (3) affirmative representations by the agency to the workers that it is their employer; (4) the nature of documentation exchanged between the workers and the agency at the start of the working relationship; (5) the agency's involvement in training, supervising, and disciplining the workers and otherwise retaining control over the workers or directing their behavior; (6) whether the agency rather than the contractor determined which workers could be terminated; and (7) whether the agency withheld workers rather than services on nonpayment by the contractor. Not every arrangement will establish that a temporary employment agency "furnishes labor". For instance, a temporary employment agency may contract with a construction company to provide only administrative services for the contractor's employees, and not labor engaged in the direct prosecution of the work. A temporary labor company who merely organizes the work force, performs administrative functions, advances wages, or does all three on behalf of another contractor or subcontractor, does not have a right to a lien.

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