Statutory employer provisions treat a general contractor or principal as the employer of a subcontractor's employees for workers' compensation purposes, extending exclusive remedy protection to it.
Requirements vary substantially by state.
Alternative Names:
Statutory Employer, Borrowed Employee Defense
Why it Matters?
The defense converts a third-party tort claim into a barred one, which is dispositive where it applies, and it is frequently overlooked because the defendant is not the nominal employer. In states with the doctrine, a general contractor sued by a subcontractor's injured employee may have a complete defense. Confirming whether the state recognizes it and whether the contractual structure satisfies the requirements is worth doing at intake.
Frequently Confused with
Frequently asked questions
What does the defense accomplish?
Why is it overlooked?
