In the current business world, it often makes more sense for a company to hire a third-party to do specific tasks for them (particularly those that involve expertise or other special skills) than to train their own employees to do it. This allows for cost savings, because they don’t have to invest in training, and gives companies the ability to find whoever is best suited to do the job.
These factors have made independent contractors a staple of many different businesses, particularly construction, oil and gas, and industrial work. However, the prevalence of independent contractors in the workplace creates complex issues when injuries are caused by independent contractor negligence or when contractor employees are injured.
Negligence Issues Involving Independent Contractors and Their Employees
Two common issues that come up are (1) whether the “principal” (the company hiring the independent contractor) should be liable for independent contractor negligence and (2) whether an an injured independent contractor employee can bring a negligence claim against the principal.
1. Principal Liability for Independent Contractor Negligence:
As a general rule, principals are not liable for independent contractor negligence. However, this is not always the case. An employer may become liable for independent contractor negligence if it controlled the details of the independent contractor’s work or if it authorized an unsafe work practice. The operational control analysis is very fact specific and will differ from case-to-case.
2. Principal Liability for Independent Contractor Employee Injuries:
It is well settled that most employees (putting aside offshore and railroad workers who may get the benefits of FELA and the Jones Act) cannot bring negligence claims against their employers. This is because of workers’ compensation laws that make a workers’ comp claim the sole remedy for an injured employee.
Though it might seem like this shouldn’t apply to the independent contractor/principal relationship (after all, contractor employees aren’t employed by the principal), Louisiana workers’ comp laws can still shield principals from liability in some situations:
Borrowed Employees:
An employee of an independent contractor may be considered an employee of the principal if he or she is classified as a “borrowed employee.” There are several factors that are considered to determine borrowed employee status: (1) who sought out the employment, (2) who paid the employee’s wages, (3) who had the power to fire the employee, and (4) who controlled the work of the employee.
Statutory Employees:
Under Louisiana law, certain employees may also be deemed “statutory employees” of the principal and barred from bringing a tort claim against the principal. Whether an employee is a statutory employee turns on the language of the contract between the principal and the employee, the relationship of the different companies operating on the worksite or project, and the type of work being performed at the time of the accident.
Being classified as a borrowed or statutory employee will likely prevent an injured independent contractor employee from successfully bringing a tort claim against the principal.
Louisiana Work Accident Attorney
Work injuries can be caused by many different types of accidents (ex. industrial accidents, offshore accidents, etc.), but regardless of the type of accident, there are often issues raised that relate to independent contractors.
If you’ve been hurt in an accident on the job, The Mahone Firm can help. Call (504) 564-7342 today to discuss your case with a New Orleans personal injury attorney.
