Suppose an employee for a contractor you’ve hired gets injured on the job. Typically, the employee’s only recourse is to seek workers’ comp benefits from the contractor. But a new California Court of Appeal ruling exposes a problem that you might not expect when using independent contractors: You can be sued if the contractor’s employee is injured while doing a potentially dangerous job for you—unless you’ve taken steps to ensure the contractor is competent to do the work.
Contractor’s Employee Killed On The Job
Tjaarda Dairy in Kern County needed to remove six-foot-high mounds of manure from its corrals and decided the piles were too slippery after a wet winter to do the work itself. The dairy made a deal with Golden Cal Trucking to handle the job.During the project, Golden Cal employee Alberto Camargo attempted to drive a Golden Cal tractor over a manure pile. The tractor went out of control and rolled over, killing Camargo.
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Court OKs Negligent Hiring Lawsuit
Camargo’s family sued the dairy, contending it failed to use reasonable care to hire a competent contractor for the work. In particular, the family claimed the dairy had reason to know that special equipment was required to safely do the job and that Golden Cal didn’t have it. The dairy asked the court to dismiss the lawsuit, arguing that Camargo’s family had no right to sue for damages and could only claim workers’ comp benefits from Golden Cal.But the Court of Appeal said the case could go forward. It explained that you generally can’t be held liable for injuries to a contractor’s employee that result from the contractor’s negligence. But this rule doesn’t preclude a lawsuit against you for your own negligence. The court said that you could be sued for failing to exercise reasonable care in selecting a competent contractor—if there is a foreseeable risk of harm to others—unless special precautions are taken in performing the work. And according to the court, in such a case, the contractor’s employees (and by extension, their heirs) can sue you for injuries caused by the contractor’s lack of competence.The Camargo family will now have to prove to a jury that the dairy knew or had reason to believe that Golden Cal wasn’t qualified for the manure removal project.
4-Point Checklist
These four steps are key to protecting yourself against negligence claims should a contractor’s employee get hurt on the job:
- Obtain a hold harmless agreement. Require the contractor to indemnify you in writing for all claims arising out of the work to be performed, including those brought by the contractor’s employees.
- Check references. Find out whether the contractor has competently performed the same type of work before by verifying several past references.
- Require assurances regarding equipment and training. Have the contractor commit in writing that it will use the proper equipment and tools for the project and that its employees are fully qualified and trained to do the work.
- Confirm that the contractor is insured. Obtain copies of the policy declarations page of the contractor’s workers’ comp and general liability policies. You’ll be at greater risk of being sued by an injured employee if the contractor isn’t adequately insured.