A temporary staffing agency placed workers on a construction project under contract with a subcontractor. The Texas Supreme Court ruled that temporary employment agencies can qualify for mechanic's liens by 'furnishing labor' under state law, even though the workers were technically the agency's employees. The court also clarified that statements made in earlier court filings can be used as evidence against a party later, regardless of whether they contradict the party's current position.
Temporary staffing agencies may have lien rights on construction projects—don't assume they can't claim payment through a mechanic's lien if they're not paid.
If you use a temp agency, ensure your contract clearly defines who bears insurance responsibility, worker replacement obligations, and equipment restrictions to avoid disputes.