Florida Contractor Practice Exam

If a contractor sublets part of the contract work to a subcontractor without Workers' Compensation and an employee is injured, who is liable for compensation?

1. The sub-contractor must pay from his personal funds.

2. You are liable for 1/3 the required compensation.

3. You are liable for payment of compensation to that employee.

4. The employee can receive no compensation.

The correct answer is: You are liable for payment of compensation to that employee.

The correct answer indicates that if a contractor sublets part of the contract work to a subcontractor who does not have Workers' Compensation coverage and an employee gets injured, the contractor retains liability for compensation. This principle is grounded in the concept of statutory employer liability, where the primary contractor is considered the employer for purposes of Workers' Compensation, even if the actual work is performed by a subcontractor. In Florida and many other states, it is the contractor's responsibility to ensure that all workers on a job site, including those employed by subcontractors, are covered by Workers' Compensation insurance. If the subcontractor fails to provide this coverage and an employee is injured, the contractor can be held liable for any Workers' Compensation benefits owed to the injured worker. This requirement serves to protect employees and ensure that they have access to necessary compensation for work-related injuries, reflecting the legal and ethical responsibility of contractors to safeguard all workers on a project, regardless of their direct employment status. Thus, this liability underscores the importance of due diligence in hiring subcontractors and ensuring they maintain the required insurance coverage, as it impacts both legal obligations and financial responsibility in the event of workplace injuries.