Under the rules for pay data reporting, what are “labor contractor employees”?

The Pay Data Reporting Act requires a company with 100 or more “labor contractor employees” to report those wages to the state. It’s important to note that the term has a very specific definition. The law defines a “labor contractor employee” as an individual “who performs labor for a client employer within the client employer’s usual course of business.”

For example, if you own a cabinet making company, and your employees installed cabinets in the offices of a large tech company (i.e., a company not involved in the cabinet making industry), your customer (the large tech company) would be the “client employer,” but because it is in the technology business — and your employees are in the cabinet installation