Multiple companies may have business on the same offshore oil rigs. Sometimes, a worker from one company may be “loaned out” to another for a time because of their particular skills. During that time, they will take their orders from a supervisor with that company.
If that worker is injured, however, identifying the proper employer for the purposes of the benefits they need and their options can become complicated.
The borrowed employee doctrine shifts responsibility
The borrowed employee doctrine (or “borrowed servant”) allows a court to treat a worker as the employee of the company that borrowed their services and controlled their work. This classification can not only determine which injury-related benefits the worker may receive but also whether the worker can bring a third-party personal injury claim for negligence against the borrowing company.
For example, suppose a staffing contractor assigns a welder to work on an offshore platform operated by another company. The contractor hired the welder and issues their paychecks. However, the platform operator decides what the welder will do, provides the equipment and directs the worker throughout each shift.
If the welder is injured, the platform operator may argue that the welder was its borrowed employee. While that means they would be responsible for the employee’s claim under the Longshore and Harbor Workers’ Compensation Act (LHWCA), they would be protected against a third-party injury claim that could be vastly more expensive. LHWCA, like standard workers’ compensation, is generally the oil rig worker’s exclusive remedy against their employer.
Naturally, this can be a significant source of disputes if the injured employee feels the company was negligent and wants to sue in civil court. No single fact automatically determines whether someone is a borrowed employee, so the court has to examine the whole working situation in detail to make the call. Documents such as service contracts, work orders, safety policies and payroll records may be important. Testimony about who assigned tasks, supervised work and had authority on the site over the employee can also be telling.
Offshore companies commonly use contractors, subcontractors and temporary personnel. As a result, the identity of an injured worker’s legal employer may be contested from the beginning of an LHWCA claim. An offshore injury attorney can evaluate the situation and determine which benefits and potential claims are possible for an injured worker.