Stop Worker Abuse
Now!
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Stop Worker Abuse
Now!
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Skirting Responsibility
Owners may think that liability for accidents on the job site stops at the subcontractors workers' compensation coverage, but think again. The following scenario demonstrates how liability moves up the project ladder when a contractor fails to carry workers' compensation insurance. In this case it goes to the general contractor, but the liability could easily extend to the owner.
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Who's the Boss? The Owner Johnson County, Kansas: Hires Building Construction Enterprises, Inc. (BCE) as construction manager. Expects BCE to oversee construction from start to finish. Expects the General contractor to follow all applicable laws.
The Contractor Building Construction Enterprises, Inc. (BCE): Wins $8,292,000 contract as construction manager, hires dozens of subcontractors. Expects each to follow immigration, employment and tax laws.
The Subcontractor Dynamic Drywall, Inc. (Dynamic): Wins subcontract for metal studs and drywall installation. Contacts a labor broker to supplement the local workforce. Arranges for workers supplied by the labor broker to live in apartments in Gardner, Kansas. Expects the labor broker to follow all applicable laws.
The Labor Broker A&A Drywall a.k.a. American Drywall (A&A): Dispatches drywallers, including many illegal immigrants. Classified them as independent subcontractors. Provided no workmans' compensation insurance, unemployment insurance, overtime pay, or healthcare or retirement benefits. Expects the workers to pay their own taxes and be honest about their immigration status. |
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