An Employee Working for a Placement Agency May Not Sue the Agency's Client | Law Firm Newswire

An Employee Working for a Placement Agency May Not Sue the Agency’s Client

Pennsauken, NJ (Law Firm Newswire) June 18, 2020 – Job placement agencies often assign employees to clients' warehouses, factories and other workplaces. If the employee is injured while working for the client, the employee cannot sue the client. This principle was reiterated in a recent decision of the Appellate Division of the Superior Court of New Jersey.

On Target Staffing, LLC (On Target), a job placement agency, entered into a "Temporary Employee Work Agreement" with Alberto Uribe. Uribe started working at the warehouse of Quartz Master, On Target's client. Uribe reported each day to Quartz Master directly for over four years. Uribe testified that the manager of the warehouse supervised him and told him what to do.

Uribe suffered an injury while performing his duties in the warehouse. He received workers' compensation benefits from On Target. He filed a tort lawsuit against Quartz Master. A trial judge ruled that Quartz Master was the special employer of Uribe and, therefore, Uribe could not file a civil suit against Quartz Master.

An employee cannot file a civil lawsuit against his or her employer. When an employer borrows the employee of another, whether that employee can file a civil suit against the borrowing employer depends on whether the borrowing employer is a special employer. 

In a 1995 case, the Supreme Court of New Jersey listed three factors indicative of a special employment relationship:

* The employee made a contract of hire with the special employer.
* The employee's work is essentially that of the special employer.
* The special employer controls the details of the employee's work.

New Jersey courts later added two more factors – the special employer pays the borrowed employee's wages and has the power to hire, discharge or recall the employee. No single factor is controlling, and not all five are necessary to establish a special employment relationship. 

In Uribe v. Quartz Master, the Appellate Division of the Superior Court of New Jersey applied these factors. It determined that Quartz Master was the special employer of Uribe. Therefore, Uribe could not file a tort action against Quartz Master.
An employee working for a job placement agency needs to know his or her rights in the event of an injury. Talk to a workers' compensation lawyer at Petrillo and Goldberg at 856.249.9295.

Petrillo & Goldberg Law

6951 North Park Drive
Pennsauken, NJ 08109

19 South 21st Street
Philadelphia, PA 19103

70 South Broad Street
Woodbury, NJ 08096

Phone: 856-486-4343
Fax: 856:486-7979

  • Workers’ compensation for worker who contracted Legionnaires’ Disease
    A Pennsylvania court ruled that a man who became disabled after developing Legionnaires’ Disease, is entitled to workers’ compensation and medical benefits. Shawn Gillen said he contracted Legionnaires’ Disease as a result of exposure to contaminated water while he was performing his job responsibilities at Nestle USA Inc. According to court records, Gillen was stationed […]
  • Settlement of labor law accusations against six South Jersey gas stations
    According to their U.S. Labor Department, the proprietors of six South Jersey gas stations will pay over $460,000 to employees who worked 70 hours per week for an amount below the minimum wage, and received no compensation for overtime. USA Gas station owners Prabhit Singh and Harbir Piar were alleged to have violated the department’s […]
  • Governor Christie says he will approve back pay for furloughed workers during government shutdown
    New Jersey Governor Chris Christie said he would approve legislation to restore compensation for workers who were laid off when the state government was shut down. This marked the second shutdown in the history of the state. A representative from his office said he does not possess the authority to do this on his own. […]
  • Long wait for survivor benefits for the spouse of volunteer
    Following the death of Scott Danielson, a member of the Lakeland Ambulance Squad and Andover Borough Councilman, his wife was left with a number of financial setbacks. Although it has been a year and a half since her husband’s death, she has yet to receive survivor benefits from the state. Shortly after her husband’s death, […]
  • Settlement in retaliation suit grants city employee $75K
    A city worker who claimed he was demoted and terminated after filing two workers’ compensation claims for injuries sustained at work has settled his lawsuit against Galloway for $75,000. Frank Chamberlain stated he received negative reviews from his supervisors and many disciplinary notices after he filed the second workers’ compensation claim in 2011. The suit […]



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required