Leasing employees may be convenient, but it comes with some risk—including unexpected liability for workplace injuries.
If another organization’s employee gets hurt while working for you, you may be directly liable for the injury, even if he is collecting workers’ comp through his nominal employer.
Recent case: Jerome Smith worked at the Jet Propulsion Laboratory (JPL), but was employed by Santa Barbara Research, which supplies hourly labor to Caltech, which manages the JPL under its own contract.
Smith injured himself and collected workers’ comp—and then sued Caltech for negligence. Caltech claimed Smith could only collect workers’ comp, portraying itself as Smith’s employer. The court said it wasn’t and let Smith’s lawsuit proceed. (Smith v. Dynalectric, et al., No. B228770, Court of Appeal of California, 2nd Appellate District, 2011)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/29799/you-may-be-liable-for-subcontractor-worker-injuries "