Indiana: State Supreme Court Says Subcontractor’s Employees are Owed a “Duty of Care”

The general contractor, TCI, had subcontracted work out to a number of vendors.  TCI utilized a “form contract” that contained language specifically stating that the subcontractors were responsible for monitoring and ensuring workplace safety.  In addition, TCI designated a safety representative, who would be responsible for overview of all safety precautions and programs related to the work.  When an employee of a sub-subcontractor was injured and sued, the Indiana Supreme Court reviewed the contract language and determined the following:

1. Typically, a general contractor does not owe a duty of care to a subcontractor or sub-subcontractor’s employees, largely because the general contractor has little to no control over the conditions of work.
2. However, there are a number of exceptions to this rule, including instances where the general contract “affirmatively evinces an intent to assume a duty of care.”
3. In reviewing TCI’s form contract with the client, the Indiana Supreme Court found a section heading titled “[TCI’s] Responsibility for Project Safety.”
4. This section, paired with the fact that the contract did allow TCI a degree of control over the worksite—in the form of TCI’s chosen safety representative, with which the subcontractors needed to comply—led the Supreme Court to state that TCI did assume a duty of care to its subcontractors.

Indiana employers should review their contracts or staffing arrangements to determine if they have inadvertently assumed a duty of care for third-party workers.

 Action Items

1. Review subcontracts or other staffing arrangements with legal counsel for potential exposure.
2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

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