Contracting Company that Did Not Require Subcontractor to Have Proper Insurance Found to be Statutory Employer
In February 2014, the Nebraska Workers’ Compensation Court granted summary judgment for the plaintiff in William Glenn v. The Tie Yard of Omaha, Doc. 213 No. 0735 (2014). In this case, The Tie Yard of Omaha, a contractor, hired a Texas-based subcontractor to assist with work The Tie Yard had undertaken in Idaho. The subcontractor met the Texas statutory requirements for insurance by purchasing an “OccAcc” policy rather than a workers’ compensation policy, and The Tie Yard allowed the subcontractor to perform work with the “OccAcc” policy rather than a workers’ compensation policy. Glenn, an employee of the subcontractor, was injured while working in Idaho.
Because the subcontractor was allowed by the Tie Yard to perform work even though it had not purchased a workers’ compensation policy as required by the Nebraska Workers’ Compensation Act, The Tie Yard was found to be a statutory employer for the purposes of the Act. The Court found the plaintiff was an employee under the Act because he was a person in the service of an employer (The Tie Yard) under a contract of hire implied by law, and the employer was performing work within the state of Nebraska.
This case stresses the importance of employers confirming they have proper insurance under the terms of the Nebraska Workers’ Compensation Act. For questions regarding workers’ compensation insurance and statutory employers, please contact Sara Hughes at email@example.com or (402) 475-1075.