Many companies depend on contractors to provide dependable, quality work. Most of the time that faith is well founded, but often it is based on mistaken assumptions. When contractors work at your facility, your company falls under the OSHA Multi-Employer Worksite Policy (CPL-02-00-124). In my experience, this policy is either unknown or misunderstood by many.

In general, this policy requires the host employer (the company that owns or operates the facility or worksite) and the contractor to share responsibility for the safety of the contractor’s employees while working at the facility or worksite. If an incident occurs and a contractor employee is injured, OSHA will determine which employer (host employer or contractor) is the Controlling Employer and ultimately the responsible party. Because the host employer has overall responsibility for the facility or worksite, the host employer is usually determined to be the Controlling Employer. However, there are situations where the host employer may not be the Controlling Employer, such as on a construction site where there is a general contractor. In these cases, there is often a clause in the contract between the host employer and the general contractor giving the general contractor the authorities and responsibilities of the host employer.

OSHA is not the only concern. If an employee of the host employer is injured, the company receives some protection from lawsuits by way of worker’s compensation laws. Unless there is negligence, an employee cannot sue his company for injuries received on the job. In return, the company is responsible for satisfying all medical expenses and, if necessary, disability. This is not the case when a company hires a contractor. The injured contractor will most certainly sue both his/her employer (the contractor) and the host employer.

Case Study

A local manufacturer hired a contractor to clean a pit. The pit was considered a permit-required confined space. The manufacturer (host employer) informed the contractor that the pit was considered a permit-required confined space, and instructed the contractor that they must adhere to the host employer’s permit-required confined space program and use only properly trained personnel. The host employer did not supervise or oversee the project in any way. In fact, the host employer didn’t even verify that the contractors were trained or if they were following the confined space program. Because the host employer gave complete control of the project to the contractor, the host employer thought they were off the hook from being responsible…boy, were they wrong.

Without getting into too much detail, one of the two contractors working on the project became overwhelmed by fumes while working in the pit and fell unconscious. Because neither contractor was trained in confined space entry, no provisions were available. A permit was not completed, air monitoring was not conducted, an attendant was not assigned, rescue equipment was not provided, etc. After about 30 minutes the unconscious contractor was finally removed from the pit and rushed to the hospital. With great remorse, the contractor passed away a few hours after reaching the hospital.

The outcome for the host employer was not good. OSHA found the host employer to be the Controlling Employer and the responsible party. I’m sure I don’t have to tell you that OSHA did not hold back on issuing violations and fines. In addition, not only is the family of the deceased contractor suing the host company, but the company that the deceased contractor was working for is also suing the host employee…for what I don’t know, but it all relates to costing more money for a tragedy that did not have to happen.

Conclusion

If done right, using contractors can be a cost effective way to enhance or supplement your operations.

Don’t assume you’re not responsible just because you’re not directly managing or controlling the project, work or contractor employees.

Ensure that contractor personnel are properly trained in OSHA requirements and best practices.

Ensure that contractor personnel are qualified to perform the task at hand. Examples, licensed electrician or plumber, certified forklift operator, approved to wear a respirator, etc.

Ensure that contractor personnel are provided with required personal protective equipment and safety equipment.

Ensure that contractor personnel are following your safety procedures.