Thursday, January 4, 2007

Tests for a Statutory Workers' Compensation Co-employeer

The usual requirements for establishing a firm as a statutory WC co-employer of a contractor are (1) there has to be a contract covering the work, (2) the injury has to occur on or about property owned by the co-employer, and (3) the work must be in the "usual course of business" of the co-employer/firm. There is a four-pronged test for figuring out whether or not the work performed is part of the usual course of business. These are as follows: (1) the type of work is routinely done at the co-employing firm, (2) the type of work is on a regular and frequent schedule, (3) the contract covering the work contemplates that the work will be repeated over a relatively short time period, and (4) the work, if not performed by the contractor, would be needed to be performed by the firm's own employees.

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