Case Law Summaries

Badir v. Loral Defense Systems

• Opinion Date: March 5, 2001
• Business Law
• E-Mail

WORKERS COMPENSATION; SPECIAL EMPLOYER—A contractor leasing an employee from an employment agency is a “special employer,” entitled to application of the workers compensation law, even though the agency pays for the insurance coverage.

A man was hired by an employment agency to provide temporary services to a contractor. He was injured while working at the job. He received workers’ compensation benefits from the employment agency his employer. He then sued the contractor, alleging negligence. The lower court concluded that although the contractor was not the individual’s direct employer, the contractor was shielded from liability under the theory that the contractor was a “special employer.” Accordingly, the lower court granted the contractor’s motion for summary judgment. The Appellate Division recognized that a “special employee is described as one who is transferred for a limited time of whatever duration to the service of another.” Under the workers’ compensation statute, “an injured employee, whether a general employee or a special employee, is barred from suing his or her employer in negligence if they are able to receive workers’ compensation benefits.” On this basis, the Appellate Division concurred with the lower court that the individual was the contractor’s special employee, and because the individual received workers’ compensation benefits he was barred from suing the contractor for negligence.

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