CSLB Contractor's Law & Business Practice Exam

In case of an injury to a subcontractor's employee who has no workers' compensation, who is held responsible?

1. The subcontractor is guilty, but the prime contractor is not responsible.

2. The prime contractor is guilty, but the subcontractor is not responsible.

3. Neither the prime contractor nor the subcontractor are responsible.

4. The subcontractor is guilty, but the prime contractor must take responsibility for the injuries.

The correct answer is: The subcontractor is guilty, but the prime contractor must take responsibility for the injuries.

The situation involves the responsibility for injuries sustained by a subcontractor's employee who lacks workers' compensation coverage. When such injuries occur, the subcontractor typically is responsible for employing their own workers' compensation insurance to cover medical expenses and lost wages for their employees. However, if the subcontractor does not have this coverage, the prime contractor can still face liability. This is primarily due to the principle of vicarious liability, where the prime contractor may be held accountable for injuries suffered by workers on their project, especially if they have some level of control over the work environment or the safety conditions. Thus, while the subcontractor is primarily responsible for their employee's lack of insurance, the prime contractor can also be required to take some responsibility to ensure that employees are compensated for their injuries, even if it means that the prime contractor must step in to cover those costs if the subcontractor cannot. In this context, the answer indicates a recognition of the prime contractor's obligations, even in cases where a subcontractor fails to manage their own liability, illustrating the complexity of contractor-subcontractor relationships and the liabilities that can arise from them.