Add Row 
Add 
Understanding the Liabilities in Construction: The Essentials of Borrowed Employees
The construction industry is evolving rapidly, as companies increasingly depend on subcontractors and temporary workers to tackle labor shortages. This trend has resulted in a rise in the use of "borrowed employees"—workers who are provided by one employer to another, usually with consent. As businesses strive to meet project demands, it becomes crucial to grasp the complexities surrounding liability when injuries occur on-site.
Who is a Borrowed Employee?
A borrowed employee is defined as someone employed by one company but temporarily working under the supervision of another. While the borrowing employer assumes responsibility for overseeing the employee’s work, the question of liability can become clouded in the event of workplace injuries.
The Layers of Liability: Decoding Responsibility
Legal ramifications emerge significantly when an injury occurs at a job site involving borrowed employees. According to attorney Jerry Lehocky, the crux of liability hinges on the amount of control exercised over the employee by the general contractor as opposed to the subcontractor supplying the worker. If the general contractor lacks substantial control, the subcontractor generally retains responsibility. This distinction is critical; if a liability claim arises, costs can escalate drastically—potentially exceeding a typical workers' compensation claim.
Current Trends Impacting Liabilities on Job Sites
As the construction landscape becomes more complex, particularly due to labor shortages and stringent scrutiny of worker immigration status, more businesses are relying on borrowed employees as a stopgap. Consequently, this leads to heightened exposure in terms of liability, often catching the borrowing company off-guard.
Financial Implications for Construction Companies
For business owners and executives, understanding these liability frameworks is essential for economic decision-making during project planning and execution. Firms must evaluate their exposure and contemplate risk management strategies, particularly concerning insurance coverage. Businesses should ask: Is the current insurance policy adequate to cover potential claims arising from borrowed employees? Can we afford the potential fallout from workplace injuries?
Conclusion: Navigating the Complexities of Labor Risks
As construction project managers and property developers consider the financial implications and safety responsibilities surrounding borrowed employees, it becomes increasingly important to work closely with legal and insurance professionals to navigate these challenges. Being proactive today can foster a more secure and financially stable project tomorrow.
Write A Comment