Contract fails to save restaurant from liability since worker was employee

 Friday, May 20, 2011

 Risk and Insurance

A worker cut his finger with a saw while renovating a restaurant. As a result, his finger was amputated. He applied for workers’ compensation, naming the restaurant and its general contractor as his employer. In a contract with the restaurant, the contractor stated that it had workers’ compensation insurance. The restaurant argued that the general contractor should be responsible for the worker’s benefits. The Kansas Court of Appeals held that the worker was an employee of the restaurant, so the contractor was not liable for benefits.
LitigationWorkers' CompensationLiability