In most countries, the employer is immune to a worker`s complaints because of his or her workplace injury outside of the work allowance. But if an employee of a subcontractor is injured, he may attempt to sue you (the contractor). Since the subcontractor`s employees are not your employees, you do not have immunity from liability that may be granted to them in the state where you work outside of your employee`s compensation. Sometimes a contractor attempts to exploit the benefit of employer immunity in workers` compensation by requiring that he or she be included as an additional insured in the subcontractor`s compensation insurance. General contractors at increased risk of being cited for faults committed by their supplier may take certain steps to minimize liability. General contractors may include compensation clauses specifically tailored to situations in which a general contractor is cited for non-compliance with OSHA by a subcontractor. This is an example clause: many contractors are increasingly relying on independent contractors, subcontractors and temporary workers for a variety of reasons. The most frequently cited reason is the need for someone with specific know-how for a specific project or task. It is clear that temporary workers are often used to replace workers temporarily absent from work. As the regulatory environment becomes increasingly tight and compensation insurance premiums continue to rise, some contractors/employers are looking for more innovative ways to reduce their commitment to regulators and avoid increasing employee compensation insurance premiums. Some companies choose to employ temporary workers, independent contractors and subcontractors in order to avoid an increase in their payroll (wage records are largely wages) in order to avoid the need for safety training and to avoid the need to comply with different labour laws. However, employers are responsible for the safety of temporary workers.
Recently, the Agency for Occupational Safety and Health (OSHA) has stagnated in this practice and has taken steps to improve the protection of temporary workers. The first step in understanding the requirements is to recognize that there are differences in the use of an independent contractor, an acting worker and a subcontractor. The case that brought this theme to the task in the Midwest was Solis v. Summit Contractors, Inc., where Summit Contractors oversaw a university residency project in Arkansas.