Texas All Lines Adjuster Practice Test

What defines a leased worker?

1. A worker hired through a labor leasing firm

2. A full-time employee of a company

3. An independent contractor

4. An intern working without pay

The correct answer is: A worker hired through a labor leasing firm

A leased worker is specifically defined as someone who is hired through a labor leasing firm to perform work for another company. This arrangement involves transferring the worker's payroll and HR responsibilities to the leasing firm, which provides the employee to the client company. This setup allows businesses to manage their workforce more flexibly, often for temporary projects or to fill short-term labor needs without the legal responsibilities typically associated with direct employment. The other choices do not fit the definition of a leased worker. A full-time employee of a company is directly hired and managed by that company, independent contractors are self-employed individuals providing services under specific contracts, and interns working without pay typically engage in temporary, educational training arrangements and are not classified as leased workers. Each of these categories has distinct legal and employment implications that differentiate them from leased workers.