What are the rules of the borrowed servant?
The Borrower Employee Rule is a doctrine that indicates that an employer may be held liable for the actions of a temporary employee.
- The Borrower Employee Rule is the doctrine that employers are held liable for the actions of temporary employees.
- Borrower employee rules are primarily used in workers’ accident compensation claims.
- The insurance industry uses answers to three questions detailed in Larson’s Compensation Act to determine liability for compensation.
Understand the rules of the borrowed servant
The Borrower Employees Rule shifts responsibility from the worker’s regular employer to the employer who is temporarily borrowing the worker. Temporary employers, called special employers, are responsible for directing the work of borrowed workers, who serve special employers rather than regular employers. Therefore, temporary employees are responsible for employee behavior.
For example, a florist manager noticed that the company couldn’t deliver all orders in time because the company couldn’t load the truck with the number of people it had. The manager asks the manager of the candy store next door if he can save a few employees a day. One of the rented employees slipped and was injured while loading a delivery truck. The injured worker is not a full-time employee, but the florist may be liable for the injury due to an implicit (albeit temporary) contract between the florist and the rented employee. The candy store where the employee normally works is not responsible.
The related doctrine is called the captain of the ship’s doctrine. This doctrine states that even if the manager does not directly monitor the employee, the manager in the relationship between the special employer and the borrowed employee is responsible for the behavior of the borrowed employee. For example, if a rented employee is injured, the manager may be in another room or offsite. This type of situation is also known as subrogation responsibility.
Execution of borrowed employee rules
Borrowed employee rules are most often found in workers’ accident compensation insurance claims.
This is a legal point that is often surprising to business owners. How they are liable for the negligence of workers who do not pay wages, withhold taxes and provide benefits, that is, workers who are actually employed by other parties with whom they are not involved. Do you think you can bear it?
The court is under the borrowed employee, provided that the employer is given the contractual right to control both the work and the methods performed by the borrowed employee and that control is actually exercised. I have decided that this is the case. In the example above, the rule is met when the florist owner points to the flower and truck and sets the borrowed servant to engage in Valentine’s Day delivery.
Determining the rules of borrowed employees
The insurance industry typically uses answers to three questions to determine the suitability of insurance liability for a special employer. These three questions are most often detailed in Larson’s Compensation Act, the prestigious textbook used for workers’ accident compensation. The question is:
- Do employees have an employment contract with a special employer, either explicitly or implicitly? In essence, the direct employer volunteered or instructed the employee to work for the special employer, and the employee agreed to such an assignment.
- Is the job essentially a special employer’s job (as discussed under control)?
- Does the special employer have the right to control the details of the work?