Texas Agreement Between General Contractor And Subcontractor To Establish Independent Relationship

By 2021-04-13Okategoriserade

The Court of Justice`s decision does not appear to have any practical application for road and residential transport companies. The law requires the use of forms developed by the Department of Workers` Compensation (DWC) to clearly establish these relationships and to reaffirm the intention of the parties when they have agreed that the general contractor will provide compensation to the subcontractor`s workers and the subcontractor`s employees. Where such an agreement exists, the subcontractor and the subcontractor`s employees consider himself to be an employee of the general contractor within the meaning of the Workers` Compensation Act. And that means that workers` benefits offer the only remedy for workplace injuries, without the right to sue the general contractor for negligence in the cause of those injuries. If the independent contractor carries with him the work allowance of his own employees, he should ask wc 03 02 (Designated Workplaces Exclusion) to avoid the payment of bonuses from his own policies. a “general contractor,” a person who has committed to obtaining work or services either separately or through the use of subcontractors; The Texas Supreme Court ruled in 2007 (Entergy Gulf States, Iinc. V. John Summers) that any business can be a general contractor if it hires an independent contractor to perform work or service for the employer. The law expressly states that the lessor is not required to provide insurance for an independent contractor within the meaning of the definition or the staff, assistants or subcontractors of the independent contractor. An insurance company cannot charge an insurance lender insurance premiums to cover an independent contractor or the staff of the independent contractor. 2) Independent contractors, without staff, who perform work or provide service to an oil or gas well operator, are not covered by the operator`s employment contract policy (see Section 406.123 (h), Texas Labor Code), unless both parties agree to Form DWC-81. In addition, a force supplier and a proprietary operator may enter into a written agreement under which the carrier by road provides the operator and workers with coverage for workers` compensation. In this case, the carrier can deduct premiums incurred from the contract price.

Three Texas Court decisions have found that all levels of owners, general contractors and subcontractors are protected by the exclusive application of the law when the employer acquires high-level compensation insurance for all employers and workers in the workplace. The purpose of Form DWC-85 is to verify the independent relationship and the parties` intention to exclude the independent contractor from the general contractor`s insurance. This form should not be submitted to DWC or the carrier, but should be available for review or request. In addition, the general contractor should receive an insurance certificate when the self-employed person supports the insurance of the salaried worker`s compensation for his own employees. John Summers sued Entergy Gulf States, Inc. for injuries he sustained while operating at the Entergy plant as a contributor to the International Maintenance Corp. (IMC). IMC had entered a contract with Entergy to carry out construction and maintenance work at the Entergy site. The contract qualified BMI as an independent contractor and provided that Entergy would provide and pay compensation insurance to BMI employees. Summers claimed and received benefits under the policy, and then sued Entergy for negligence.


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