Strategies for Avoiding Multi-Employer Liability

Smith Anderson
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The past influx of federal construction project funds has brought increased scrutiny from OSHA when it comes to multi-employer liability (i.e., holding more than one employer liable for workplace safety violations stemming from the same jobsite). It appears the enhanced scrutiny is not going away any time soon, especially considering recent government concerns that many general contractors may have improperly classified employees as independent contractors in order to avoid paying employment taxes and other employee costs.

While OSHA’s multi-employer liability policy originated in the context of the construction industry, it is not limited to general contractors and their subcontractors. As evidenced by OSHA citations recently issued against two Wisconsin companies, such liability also can be asserted against both a temporary staffing agency and a host employer (when injuries are sustained by a temporary worker on assignment elsewhere).

Originally published in Construction Executive - April 2015.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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