Workplace injuries -
Exclusive remedies applies despite contract
violation
In a case currently being considered for publication,
Janela v. Roman Asphalt Co., the issue of dual
employment arose in the context of a government
construction contract. The employer/paving company,
Raebeck Construction won a contract for paving at
Newark Liberty International Airport, which called
for it to exercise direct control over the project
and to certify that it did not share staff with any
other company. On the date of the accident, an
employee was struck in the head by a compressor and
killed. His estate was paid dependency benefits by
Raebeck. However, the estate also brought suit
against another company, Roman, who actually did the
paving work. It was revealed that contrary to the
contract, Raebeck had no role in the job and
essentially leased all workers from Roman. Raebeck
did actually pay all of the workers, however. Roman
moved for summary judgment on the exclusivity
provisions of the Workers Compensation Act. The
Appellate Division upheld the dismissal of Roman
using a five part fact sensitive test focusing on the
control exercised over the employees, to determine
whether Roman was also an employer. It found that
even though Raebeck violated specific government
contract provisions to avoid this precise employment
situation, bidding qualifications and contract
requirements did not negate the legal rules governing
workers' compensation.
Application:
When analyzing a new claim involving dual employment,
an immediate and comprehensive investigation of the
employment relationship is essential. Obtaining
documentation such as contracts, job descriptions,
employment handbooks, payroll records, and even
incorporation documents is an essential strategy in
evaluating the claim. Also, early identification and
interviews of the owners, managers and contractors
can further assist in determining the degree of
control each entity had over the injured worker.