Legal Updates The Borrowed Servant Rule: Liability Risks for Contractors and Owners
Contractors – of all tiers – are often surprised to learn they may be considered a “special employer” of individuals who actually work for independent third parties—such as temporary staffing agencies or equipment rental companies—on their projects. Even more surprising, contractors (including owners who self-perform) can be held primarily responsible for the negligent acts or omissions of these third-party workers because of this “special employer” status. How can a contractor become primarily liable for someone they do not pay, do not withhold taxes for, do not provide benefits to, and who is officially employed by another company?
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