Subcontractor statutory employer rule
A state rule that can make an owner or contractor responsible for workers' compensation benefits owed to workers of a subcontractor performing covered work.
Statutory-employer rules are designed to prevent coverage obligations from being avoided by contracting out work. They can make an upstream contractor liable for compensation to a subcontractor's worker when statutory conditions are met.
Virginia's Commission explains that the rule applies when subcontractors perform the contractor's trade, business, occupation, or work needed to fulfill the contractor's contract. States differ on thresholds, defenses, insurance-credit rules, and whether a sole proprietor or independent contractor is included.
Where this definition comes from
Glossary entries are anchored to a state agency, statute, board, commission, or recognized workers' compensation authority rather than a generalized summary.
More terms
- Additional insured
- Agricultural/farm labor exclusion
- Assigned risk pool / residual market
- Casual employment
- CE-200 (New York)
- Certificate holder
- Certificate of election
- Certificate of insurance (COI)
- Civil penalty (uninsured employer)
- Class code
- Competitive state fund
- Construction vs non-construction classification