Workers’ Comp for Temporary and Leased Employees


Workers’ Comp for Temporary and Leased Employees

When you work as a temporary or leased employee, getting workers’ compensation for a workplace injury could cause you some problems. Employers may not have workers’ compensation insurance coverage, or it may be unclear who your employer is.

What Is a Temporary Employee?

A temporary employee is hired by a temp agency or temporary help service. These agencies assign temporary employees to clients for limited periods of time. The clients usually need help on special projects or have worker shortages. Clients direct temporary employees’ work, but agencies may control payroll and benefits.

Who Providers Workers’ Comp Coverage for a Temporary Employee?

Both the temp agency and the client are responsible for workers’ compensation insurance coverage for a temporary employee. Both are considered to be the employee’s employers. The agency and the client can agree on which will obtain coverage. Usually, the agency gets the insurance policy.

If the agency agrees to get the insurance policy but fails to do so, then the client will be liable for workers’ compensation benefits for an injured employee. If both employers are insured and they do not agree which will provide coverage, then the court will probably order the client and its insurer to cover the benefits payments. Courts have done this in the past because the client controls the employee’s work and the workplace, so the client can best prevent an injury onsite.

What Is a Leased Employee?

Similar to a temporary employee, a leased employee works for a leasing company. The leasing company leases the employee to a client company for a fee. Leasing arrangements may last longer than temp employment arrangements, but the concept is similar. The leasing company takes on some responsibilities such as payroll for the leased employee, while the client company directs and controls the leased employee’s work.

Who Providers Workers’ Comp Coverage for a Leased Employee?

Like temporary employees, leased employees may be covered by workers’ compensation insurance paid for by either the leasing company or the client. The leasing company and the client can agree on which will provide coverage. If one of them agrees but does not provide coverage, the other will be liable for benefits.

Need help getting workers’ compensation for your injury? Joe Osterbauer, Esq. and the Osterbauer Law Firm stand up for injured Minnesota workers’ rights. Joe’s 27 years of workers’ compensation experience and his team’s speedy service combine to get clients the results they need. To schedule a free consultation, visit Osterbauer Law Firm online or call Joe’s office at (612) 334-3434.