Wingfoot Enterprises v. Alvarado
Wingfoot Enterprises v. Alvarado
Opinion of the Court
delivered the opinion of the Court,
The issue in this case is whether an employee can have more than one employ
I
Tandem is in the business of providing temporary general labor to various industrial companies.
Tandem gave its employees details about their job assignments at Web and provided basic safety equipment and training. Tandem also had supervisors on-site at Web to check employees in, to get them started working promptly, to issue them proper safety equipment, and to monitor their breaks and lunch hours. Web supervised the specific tasks performed by the temporary employees, but Tandem retained the right to determine which employees would perform a particular task for Web, could substitute a different employee to perform a particular task, and could reassign an employee to another task.
Tandem hired Marleny Alvarado and, shortly thereafter, assigned her to do manual assembly work at Web’s manufacturing facility. Web, however, assigned Alvarado to operate a staking or stamping machine. It was against Tandem’s policy for its workers to operate industrial machinery, a policy of which Alvarado was aware. Alvarado did not notify Tandem about this job assignment or that the job was unsuitable or unsafe, as she was required to do, but there was evidence that Tandem’s on-site supervisor knew Alvarado was operating the machine. About two days after Alvarado began working at Web’s facility, the tips of three of her fingers were severed while she was operating the machine.
At the time of Alvarado’s injury, Tandem maintained workers’ compensation insurance coverage for Alvarado and its other employees. Web also had workers’ compensation insurance coverage for its employees. Alvarado applied for and received workers’ compensation benefits under Tandem’s policy, but she subsequently sued Tandem, claiming that it was negligent and grossly negligent in a number of ways, alleging generally that Tandem failed to properly train and supervise her, warn her of dangers, and provide her with a safe workplace. Alvarado also sued Web.
Tandem moved for summary judgment
Alvarado appealed the summary judgment in favor of Tandem, but did not appeal the judgment in favor of Web. The court of appeals affirmed the summary judgment on Alvarado’s gross negligence claim, but reversed the judgment on Alvarado’s negligence claim, holding that there is some evidence to support that claim.
Tandem filed a petition for review in this Court, reasserting both the exclusive remedy provision of the Workers’ Compensation Act and, alternatively, the contention that there is no evidence that it was negligent. Alvarado does not seek review of the court of appeals’ adverse judgment on her gross negligence claim. Therefore, the only claim before this Court is Alvarado’s negligence claim against Tandem.
We granted Tandem’s petition to resolve differing views among the courts of appeals as to whether a general employer
II
The starting point iñ our analysis is the Texas Workers’ Compensation Act.
“Employer” means, unless otherwise specified, a person who makes a contract of hire, employs one or more employees, and has workers’ compensation insurance coverage. The term includes a governmental entity that self-insures, either individually or collectively.12
For purposes of the foregoing definition, an employer has “workers’ compensation insurance coverage” if the employer has either obtained an approved insurance policy or secured the payment of compensation through self-insurance as provided under the Act.
The exclusive remedy provision of the Act says, “Recovery of workers’ compensation benefits is the exclusive remedy of an employee covered by workers’ compensation insurance coverage or a legal beneficiary against the employer or an agent or
The Act also defines “employee”:
(a) In this subtitle, “employee” means each person in the service of another under a contract of hire, whether express or implied, or oral or written.
(b) The term “employee” includes:
(1) an employee employed in the usual course and scope of the employer’s business who is directed by the employer temporarily to perform services outside the usual course and scope of the employer’s business;
(2) a person, other than an independent contractor or the employee of an independent contractor, who is engaged in construction, remodeling, or repair work for the employer at the premises of the employer; and
(3) a person who is a trainee under the Texans Work program established under Chapter 308.
(e) The term “employee” does not include:
(1) a master of or a seaman on a vessel engaged in interstate or foreign commerce; or
(2) a person whose employment is not in the usual course and scope of the employer’s business.18
The Workers’ Compensation Act defines “course and scope of employment” to mean, in pertinent part,
an activity of any kind or character that has to do with and originates in the work, business, trade, or profession of the employer and that is performed by an employee while engaged in or about the furtherance of the affairs or business of the employer. The term includes an activity conducted on the premises of the employer or at other locations....19
Alvarado concedes that she is Tandem’s employee for some purposes, and the summary judgment evidence conclusively establishes that she is. Tandem made all decisions regarding Alvarado’s employment, including whether to hire her, fire her, and determining the client companies for whom she would work. Tandem paid Alvarado’s salary, withheld taxes, and provided training and benefits. At the time she was injured, Alvarado was working at Web’s facility pursuant to Tandem’s direction, to serve Tandem’s business purposes. While at Web, Tandem provided some degree of on-site supervision and required Alvarado to report any unsafe conditions to Tandem and any deviations in job assignment to Tandem.
But Alvarado contends that when Web took control of the details of her work, she ceased to be an employee of Tandem for workers’ compensation purposes. She argues that when one entity “borrows” another’s employee, workers’ compensation law identifies one party as the employer and treats all others as third parties, citing Smith v. Otis Engineering Corp.
The jury’s finding that Web was Alvarado’s employer is not before us, and that finding is not binding on Tandem, who was not a party to the trial.
As we said in Texas Workers’ Compensation Insurance Fund v. Del Industrial, Inc., we apply the Act as written in determining workers’ compensation issues,
Neither the definitions of “employer” and “employee” under the Act nor the exclusive remedy provision expressly fore
The Texas Labor Code recognizes that an employer may be in the business of providing temporary workers to others. The Code defines “Temporary common worker employer” as “a person who provides common workers to a user of common workers. The term includes a temporary common worker agent or temporary common worker agency.”
(3) “Common worker” means an individual who performs labor involving physical tasks that do not require:
(A) a particular skill;
(B) training in a particular occupation, craft, or trade; or
(C)practical knowledge of the principles or processes of an art, science, craft, or trade.30
A “user of common workers” is also defined: “ ‘User of common workers’ means a person who uses the services of a common worker provided by a temporary common worker employer.”
The Staff Leasing Services Act, by definition, does not cover the providers of temporary workers. The term “Staff leasing services” “does not include ... temporary help ... or ... a temporary common worker employer as defined by Chapter 92.”
The Staff Leasing Services Act contemplates that one workers’ compensation policy procured by the staff leasing service company will cover employees leased to a client company, and that both the leasing company and the client may rely on the exclusive remedy provision of the Workers’ Compensation Act.
(b) Notwithstanding any other provision of this chapter, a client company retains responsibility for:
(1) the direction and control of assigned employees as necessary to conduct the client company’s business, discharge any applicable fiduciary duty, or comply with any licensure, regulatory, or statutory requirement....39
As we explained in Del Industrial, Inc., under the Staff Leasing Services Act, a staff leasing company makes the election of whether to provide workers’ compensation insurance coverage for both itself and the client company for the employees it leases.
The Labor Code also recognizes that a general contractor may procure workers’ compensation coverage for subcontractors and subcontractors’ employees.
From an examination of Chapter 92, which expressly contemplates the existence of temporary common worker employers, the Staff Leasing Services Act, and the provisions of the Code that deal with general contractors, subcontractors, and their employees, we glean at least three things. First, the Labor Code expressly recognizes the existence of employers who engage in the business of providing temporary workers to others. Second, the Labor Code does not abhor the concept of two employers for workers’ compensation purposes. Third, the Staff Leasing Services Act and section 406.123 (covering general contractors and subcontractors), like other workers’ compensation provisions in the Code, encourage employers to obtain workers’ compensation insur-anee coverage by providing benefits to the employer, including the exclusive remedy provision, if coverage is obtained. The Staff Leasing Services Act goes further and provides disincentives, such as removing common law defenses, if coverage is not obtained.
We recognized the benefits of workers’ compensation coverage to both employees and employers in Hughes Wood Products, Inc. v. Wagner.
The workers’ compensation act was adopted to provide prompt remuneration to employees who sustain injuries in the course and scope of their employ-0 ment.... The act relieves employees of the burden of proving their employer’s negligence, and instead provides timely compensation for injuries sustained on-the-job. ... In exchange for this prompt recovery, the act prohibits an employee from seeking common-law remedies from his employer, as well as his employer’s agents, servants, and employees, for personal injuries sustained in the course and scope of his employment.54
These purposes of the Act are carried out by recognizing that the express definitions of “employer” and “employee” and the exclusive remedy provision may apply to more than one employer. An employee in Alvarado’s situation will be working for her general employer (i.e., the temporary staffing provider), but will also be subjected to laboring in the workplace and under
We note that in a number of other jurisdictions, either by statute or case law, both a general employer and one who borrows that employer’s employee are immune from common-law suit under statutory provisions similar to Texas’s exclusive remedy provision, if one or both maintain workers’ compensation coverage.
We think it prudent to emphasize that we are deciding today only whether there may be two employers for workers’ compensation purposes when a provider of temporary workers furnishes a worker to a client that controlled the details of the work at the time the worker was injured and there was no agreement between the provider of temporary workers and the client regarding workers’ compensation coverage. We are aware that there are decisions from Texas courts of appeals that have held that when an employer provides workers to client companies and agrees to procure workers’ compensation coverage for those workers, the client company is considered to be the employer for purposes of the exclusive remedy provision of the workers’ compensation law if the staffing provider actually procured such coverage and the employee was under the direct control of the client or was the client’s borrowed servant.
We turn to Alvarado’s argument that the common-law doctrine of right to control should govern this case.
Ill
We recognized in Del Industrial, Inc. that “ ‘[t]he common law has been dramatically engrafted upon by the [Legislature. Where the common law is revised by statute, the statute controls.’ ”
As discussed above, the Workers’ Compensation Act has express definitions of “employer” and “employee” that should be given effect when applicable, even if that results in an employee’s having more than one employer for purposes of workers’ compensation. As we have seen, nothing in the Act provides that there must be only one “employer” for workers’ compensation purposes. Furthermore, nothing in the common-law decisions of this Court is at odds with the concept that an employee may have two employers for workers’ compensation purposes.
We said in Del Industrial, Inc. that “[generally, courts determine whether ... the subscribing company is the worker’s employer under the right-of-eontrol test,”
In Exxon Corp. v. Perez, we addressed the parameters of the borrowed-servant doctrine in the context of the borrowing entity’s claim that it was entitled to rely on the exclusive remedy provision of the former workers’ compensation act.
At least two courts of appeals have concluded that the common-law right to control test did not deprive an employer of the benefit of the Act’s exclusive remedy provision when an employee was injured while the details of that employee’s work were under the control of another. The first of these cases, Chapa v. Koch Refining Co.,
In another case, Texas Industrial Contractors, Inc. v. Ammean,
Ammean argues the exclusive remedy provision does not prevent him from recovering against Texas Contractors at common law because Bayer was his true employer since it controlled the details of his work and because he did not make an informed election of remedies. Where, however, a worker is hired by one company that has contracted to do work for another, that company has a workers’ compensation policy, and the worker receives benefits under that policy following an award by the Texas Workers’ Compensation Commission, the worker’s common law claim against that company is barred by the Act’s exclusive remedy provision, even if control over the details of the work is in the hands of the other company with which that company has contracted.
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In any event, Ammean brought this common law claim after he had sought and obtained, with the assistance of an attorney, workers’ compensation benefits. No appeal was taken from the award.83
Two other court of appeals decisions have applied reasoning that is at odds with the reasoning in Chapa and Ammean. In Smith v. Otis Engineering Corp., decided under the former workers’ compensation statutes, Smith was “in the general employ” of Stewart Well Service Company.
The same court that decided Smith subsequently decided Archem Co. v. Austin Industrial, Inc.
The single employer theory from Smith and Archem was embraced in Coronado v. Schoenmann Produce Co.
The same court that decided Smith and Archem decided the case before us today. The author of the court of appeals’ opinion in this case took the unusual but not unprecedented
For these reasons, I reluctantly follow the rule we articulated in Smith and Archem. If I were writing on a clean slate, however, I would decide this case by adopting the holding of Texas Industrial Contractors, Inc. v. Ammean, 18 S.W.3d 828 (Tex.App.~Beaumont 2000, pet. [dism’d by agr.]) that,
[when], however, a worker is hired by one company that has contracted to do work for another, that company has a workers’ compensation policy, and the worker receives benefits under that policy following an award by the Texas Workers’ Compensation Commission, the worker’s common law claim against that company is barred by the [Labor Code’s] exclusive remedy provision, even if control over the details of the work is in the hands of the other company with which that company has contracted.
Id. at 831; Chapa v. Koch Refining Co., 985 S.W.2d 158, 161 (Tex.App.-Corpus Christi 1998), rev’d on other grounds, 11 S.W.3d 153 (Tex. 1999). This result gives effect to the policy behind the workers’ compensation statute, which deprives the injured employee of a subscriber of many common law rights in return for prompt compensation benefits and medical treatment.... Accordingly, I believe that applying the above holding to this case would yield a fairer result and comport with legislative intent.103
We agree with the concurring opinion in the court of appeals in this case that Smith and Archem were incorrectly decided. Because the holding in Smith
⅝ :£ ⅝ ⅝ ⅜ ⅜
For the foregoing reasons, the trial court properly granted summary judgment in favor of Tandem. Accordingly, we reverse the court of appeals’ judgment and render judgment that Alvarado take nothing.
. See Tex. Lab.Code § 408.001.
. Tandem is not, however, a “staff leasing services company” as defined and regulated by the Staff Leasing Services Act. See Tex. Lab.Code §§ 91.001 etseq.
. Tex.R. Civ. P. 166a(c), (i).
. See Tex. Lab.Code § 408.001.
. Id. at 724-25.
. Id.
. We use the term “general employer” in this opinion to refer to a provider of temporary workers that employs a worker who is then assigned to work for a client of the provider.
. Compara Chapa v. Koch Ref. Co., 985 S.W.2d 158, 161 (Tex.App.-Corpus Christi 1998), rev’d on other grounds, 11 S.W.3d 153 (Tex. 1999) (holding that workers’ compensation was injured worker’s exclusive remedy against both the leasing company and the client company because both provided workers’ compensation benefits, the worker recovered benefits from the leasing company, and the client company had the right to control the employee's work activities), and Tex. Indus. Contractors, Inc. v. Ammean, 18 S.W.3d 828, 831 (Tex.App.-Beaumont 2000, pet. dism’d by agr.) (holding that general employer was entitled to rely on the exclusive remedy provision even though there was some evidence that premises owner exercised control over the injury-producing activity because the general employer had workers’ compensation insurance, and the injured employee accepted benefits under that policy), with Coronado v. Schoenmann Produce Co., 99 S.W.3d 741, 753 (Tex.App.-Houston [14th Dist.] 2003, no pet.) (concluding that when "one entity borrows another’s employee, workers' compensation law identifies one party as the ‘employer’ and treats all others as third parties”), Alvarado, 53 S.W.3d at 724-25 (holding that leasing company and client company were not co-employers of injured worker, and leasing company was not entitled to summary judgment based on the exclusive remedy provision because there was a fact question about whether the leasing company or the client company had the right to control the employee's activities when she was injured), Archem Co. v. Austin Indus., Inc., 804 S.W.2d 268, 270-71 (Tex.App.-Houston [1st Dist.] 1991, no writ) (holding that an employee can have only one employer for workers’ compensation purposes and that is the person or entity with the "right to control" the employee at the time of the accident), and Smith v. Otis Eng’g Corp., 670 S.W.2d 750, 751-52 (Tex.App.-Houston [1st Dist.] 1984, no writ) (holding that the person or entity with the right to control the injured worker at the time of the accident is the only employer for workers' compensation purposes).
. Tex Lab.Code §§ 401.001 etseq.
. Id. § 401.011(18).
. Section 401.011(44) defines "Workers’ Compensation insurance coverage”:
"Workers’ compensation insurance coverage" means:
(A) an approved insurance policy to secure the payment of compensation;
(B) coverage to secure the payment of compensation through self-insurance as provided by this subtitle; or
(C) coverage provided by a governmental entity to secure the payment of compensation.
Id. § 401.011(44).
. Id. § 406.001.
. Id. § 408.001(a).
. Id. § 406.001.
. Id. § 406.033.
. Id. § 401.012(a), (b), (c).
. Id. § 401.011(12).
. 670 S.W.2d 750, 751 (Tex.App.-Houston [1st Dist.1984], no writ).
. 804 S.W.2d 268, 269 (Tex.App.-Houston [1st Dist.1991], no writ).
. Cf. Amstadt v. U.S. Brass Corp., 919 S.W.2d 644, 652-53 (Tex. 1996) (yes judicata prevents the relitigation of a claim or cause of action that has been finally adjudicated in an earlier suit, but only when the parties in the first suit are the same as those in the second suit or are in privity with them).
. 35 S.W.3d 591, 596 (Tex. 2000).
. Tex Lab.Code. §§ 401.011(18), 406.011.
. See id.
. See Md. Cas. Co. v. Brown, 131 Tex. 404, 115 S.W.2d 394, 397 (1938) (“While it seems to be the rule that a violation of instructions of an employer by an employee will not destroy the right to compensation, if the instructions relate merely to the manner of doing work, yet it seems to be held by the weight of authority that violation of instructions which are intended to limit the scope of employment will prevent a recovery of compensation.”); Brown v. Forum Ins. Co., 507 S.W.2d 576, 577 (Tex.Civ.App.-Dallas 1974, no writ) (employee killed while flying a private plane in furtherance of employer’s work was still in the course of his employment in spite of the company rule against using private or chartered aircraft in connection with work duties).
. See Tex Lab.Code §§ 401.011(18), 406.001, 401.012(a).
. Del Indus., Inc., 35 S.W.3d at 593 (citing Bridgestone/Firestone, Inc. v. Glyn-Jones, 878 S.W.2d 132, 133 (Tex. 1994)).
. Tex Lab.Code § 92.002(7).
. Id. § 92.002(3)
. Id. § 92.002(8).
. See id. §§ 92.002, 92.011, 92.012, 92.022, 92.024, 92.025.
. Id. § 91.001(14)(A), (D).
. Id. § 91.001(14).
. See id. § 91.006(a) ("A certificate of insurance coverage showing that a license holder maintains a policy of workers’ compensation insurance constitutes proof of workers’ compensation insurance coverage for the license
. Tex. Lab.Code §§ 91.001 et seq.
. Id. § 91.001(14).
. Id. § 91.032(a)(1).
. Id. § 91.032(b)(1).
. 35 S.W.3d 591, 594 (Tex. 2000).
. Id.
. Tex Lab.Code § 91.042(b).
. Id. § 91.042(e).
. Id. § 91.042(d); see also Del Indus., Inc., 35 S.W.3d at 594.
. Tex Lab.Code § 406.123(a).
. Id. § 406.121(3) (defining "Motor carrier”).
. Id. § 406.121(4) (defining "Owner operator”).
.Id. § 406.123(c).
. Id. § 406.121(a).
. Id. § 406.123(e).
. See Act of Dec. 11, 1989, 71st Leg., 2d C.S., ch. 1, 1989 Tex. Gen. Laws 1, 15-16; see also Act of May 26, 1983, 68th Leg., R.S., ch. 950, 1983 Tex. Gen. Laws 5210, 5210-11.
. Williams v. Brown & Root, Inc., 947 S.W.2d 673, 675-77 (Tex.App.-Texarkana 1997, no writ).
. 18 S.W.3d 202, 206 (Tex. 2000).
. Id. at 206-07 (quoting Darenshurg v. Tobey, 887 S.W.2d 84, 86 (Tex.App.-Dallas 1994, writ denied) (citing Reed Tool Co. v. Copelin, 610 S.W.2d 736, 739 (Tex. 1980))); Paradissis v. Royal Indem. Co., 507 S.W.2d 526, 529 (Tex. 1974); see also Tex. Workers' Comp. Comm’n v. Garcia, 893 S.W.2d 504, 511 (Tex. 1995).
. See generally Larson, Larson’s Workers' Compensation Law § 67.04D (2003); see also Cal. Ins.Code § 11663 ("As between insurers of general and special employers, one which insures the liability of the general employer is liable for the entire cost of compensation payable on account of injury occurring in the course of and arising out of general and special employments unless the special employer had the employee on his or her payroll at the time of injury, in which case the insurer of the special employer is solely liable."); Anderson v. Tuboscope Veteo, Inc., 9 P.3d 1013, 1017 (Alaska 2000) (stating that under the special employment doctrine, temporary agency employees are employees of both the temporary agency and the company to which they are assigned and implying that both companies are immune from negligence claims); Marlow v. Mid S. Tool Co., Inc., 535 So.2d 120, 123 (Ala. 1988) (stating that the court had established in a line of cases that for workers’ compensation purposes "a temporary services employee is the employee of both his or her general employer (i.e., the employment agency) and his or her special employer (i.e., the employer to which the employment agency assigned the employee to work”)); Araizav. U.S. W. Bus. Res., Inc., 183 Ariz. 448, 904 P.2d 1272, 1276 (App. 1995) ("When a labor contractor such as Manpower supplies or ‘lends’ its employee to another employer, the result may be an arrangement in which one employee has two employers. ... The significance of this arrangement is that both employers are liable for workers’ compensation and both are immune from tort liability for injuries received by the employee....”); Avila v. Northrup King Co., 179 Ariz. 497, 880 P.2d 717, 726 (App. 1994) ("The exclusivity of workers’ compensation coverage as a remedy is based on the existence of an employment relationship. That relationship exists between [the plaintiff] and two employers.... Thus, both his general and special employer are entitled to immunity under [the exclusive remedy provision].”); Ragsdale v. Wheelabrator Clean Water Sys., Inc., 959 P.2d 20, 22-23 (Okla.Ct.App. 1998); Blacknall v. Westwood Corp., 307 Or. 113, 764 P.2d 544, 545-47 (1988) (construction worker was the employee of both the lending and borrowing employer, and because the borrowing employer reimbursed the lender for compensation insurance costs, the borrower was immune from suit on common law claims); cf. D‘Andrea v. Manpower, Inc. of Providence, 105 R.I. 108, 249 A.2d 896, 898-99 (1969) (general employer remained liable for workers’ compensation benefits even
.Rodriguez v. Martin Landscape Mgmt. Inc., 882 S.W.2d 602, 605-06 (Tex.App.-Houston [1st Dist.] 1994, no writ); Gibson v. Grocers Supply Co., Inc., 866 S.W.2d 757, 760 (Tex.App.-Houston [14th Dist.] 1993, no writ); Marshall v. Toys-R-Us Nytex, Inc., 825 S.W.2d 193, 196 (Tex.App.-Houston [14th Dist.] 1992, writ denied); Denison v. Haeber Roofing Co., 767 S.W.2d 862, 864-65 (Tex.App.-Coipus Christi 1989, no writ); see also Guerrero v. Standard Alloys Mfg. Co., 566 S.W.2d 100, 102 (Tex.Civ.App.-Beaumont 1978, writ ref'd n.r.e.) (holding there was a fact question about whether client company had a right to control employee and therefore whether it could assert exclusive remedy provision based on workers’ compensation policy obtained by general employer who supplied contract labor).
. Pederson v. Apple Corrugated Packaging, Inc., 874 S.W.2d 135, 137-38 (Tex.App.-East-land 1994, writ denied).
. Brown v. Aztec Rig Equip., Inc., 921 S.W.2d 835, 840, 847 (Tex.App.-Houston [14th Dist.] 1996, writ denied); see also Cherry v. Chustz, 715 S.W.2d 742, 743-44 (Tex.App.-Dallas 1986, no writ) (holding that independent contractor could assert the exclusive remedy bar in a suit by its employee even though the company that retained the contractor paid the workers’ compensation premiums).
. Garza v. Excel Logistics, Inc., 100 S.W.3d 280, 287-88 (Tex.App.-Houston [1st Dist.] 2002, pet. filed).
. Id.
. 35 S.W.3d 591, 596 (Tex. 2000) (quoting Bartley v. Guillot, 990 S.W.2d 481, 485 (Tex.App.-Houston [14th Dist.] 1999, pet. denied)).
. Id.
. Id.
. Id. at 595.
. 789 S.W.2d 277, 278 (Tex. 1990).
. Id.
. Id. at 279.
. St. Joseph Hosp. v. Wolff, 94 S.W.3d 513, 537 (Tex. 2002) (plurality opinion) (citing Sparger v. Worley Hosp., Inc., 547 S.W.2d 582, 583 (Tex. 1977) and Producers Chem. Co. v. McKay, 366 S.W.2d 220, 225 (Tex. 1963)).
. 842 S.W.2d 629, 630 (Tex. 1992).
. Id.
. 985 S.W.2d 158 (Tex.App.-Corpus Christi 1998), rev’d on other grounds, 11 S.W.3d 153 (Tex. 1999).
. See id. at 161 (applying Act of Dec. 13, 1989, 71st Leg., 2d C.S., ch. 1, § 4.01, 1989 Tex. Gen. Laws 32, repealed by Act of May 22, 1993, 73rd Leg., R.S., ch. 269, § 1, 1993 Tex. Gen. Laws 987, 1175 (current version at Tex. Lab.Code § 408.001)).
. Id.
. Id.
. Id.
. Id.
. Koch Ref. Co. v. Chapa, 11 S.W.3d 153, 157 (Tex. 1999).
. 18 S.W.3d 828 (Tex.App.-Beaumont 2000, pet. dism’d by agr.).
.Id. at 833-34.
. Mat 831.
. See id.
. 670 S.W.2d 750, 751 (Tex.App.-Houston [1st Dist.] 1984, no writ).
. Id.
. Id. at 752.
. Id. at 751.
. 524 S.W.2d 373, 376 (Tex.Civ.App.-Dallas 1975, no writ).
. 53 S.W.3d at 729 (Taft, J., concurring).
. 804 S.W.2d 268 (Tex.App.-Houston [1st Dist.] 1991, no writ).
. Id. at 269.
. Id.
. Id. at 271.
. 99 S.W.3d 741 (Tex.App.-Houston [14th Dist.] 2003, no pet.).
. Id. at 744.
. Id. at 753.
.Id. at 757.
. See Casso v. Brand, 776 S.W.2d 551 (Tex. 1989) (Phillips, C.J., authoring both the majority opinion and a dissenting opinion).
. 53 S.W.3d at 727 (Taft, J., concurring).
. Id. at 730.
. Id.
. Mat 730-31.
. 670 S.W.2d 750, 751 (Tex.App.-Houston [1st Dist.] 1984, no writ).
. 804 S.W.2d 268, 271 (Tex.App.-Houston [1st Dist.] 1991, no writ).
. 99 S.W.3d 741, 753 (Tex.App.-Houston [14th Dist.] 2003, no pet.).
Concurring Opinion
concurring.
I agree with the Court that the “right-to-control” test should be rejected as the test to apply when determining who the “employer” is in the workers’ compensation context. Unfortunately, though rejecting the test, the Court appears to rely on that test to conclude that Tandem is a joint employer in this case.
Rather than rely on a shared right-to-control to determine under the workers’ compensation statute who the employer is, I would follow the approach outlined by Texas Industrial Contractors, Inc. v. Am-mean:i In Ammean
[When] a worker is hired by one company that has contracted to do work for another, that company has a workers’ compensation policy, and the worker receives benefits under that policy following an award by the Texas Workers’ Compensation Commission, the worker’s common law claim against that company is barred by the Act’s exclusive remedy provision, even if control over the details of the work is in the hands of the other company with which that company has contracted.7
My principal concerns with the Court’s position are two-fold. First, it applies the right-to-control test-a test that leads to unfair results — to determine the “employer” for workers’ compensation purposes. And second, under these circumstances, it concludes that Alvarado has joint employers — a holding that is neither supported nor predicted by relevant legislative enactments.
Using the right-to-control test is unfair because it leaves employees in Alvarado’s circumstance at a loss as to whom they should look for compensation coverage. On the other hand, in these circumstances, though the actual employer procured workers’ compensation for its employee
Furthermore, in concluding that Alvarado has two employers for workers’ compensation purposes because they exercise joint control, the Court applies the right-to-control test very broadly. This seems peculiarly inconsistent with the Court’s application of this same right-to-control test in St. Joseph’s Hospital v. Wolff,
Texas’s workers’ compensation scheme was adopted and designed to benefit both the employee and the employer.
In relying on “joint” control to conclude that Alvarado had two employers for workers’ compensation purposes, the Court looks for guidance by reviewing other parts of the Texas Labor Code, specifically the Staff Leasing Services Act.
Furthermore, this case is not one of dual employers. Two entities are “co-employers” when they have joint control over an employee’s work. Co-employers have been widely recognized in the labor and employment context, as well as in the workers’ compensation context.
For example, the facts in Ingalls v. Standard Gypsum, L.L.C. demonstrate an actual “co-employer” circumstance.
As another example, in Brown v. Aztec Rig Equipment, Inc., William Brown signed an employment agreement which declared that the staff leasing company, Administaff, Inc., and the client company, Aztec, were his “co-employers.”
Of course, in situations where the parties expressly contemplate a “co-employer” relationship, there is no reason to disregard such a relationship.
Furthermore, workers’ compensation statutes in other jurisdictions have not only clearly recognized “co-employers” and provided the exclusivity defense to each, but those jurisdictions, with limited exceptions, require all employers to carry workers’ compensation insurance,
To determine whether one is immune from a negligence suit under Texas’s workers’ compensation scheme as an employer, I would reject the right-to-control test and adopt the test suggested in Ammecm: whether the entity hired the employee and purchased workers’ compensation insurance that covered the injured employee. And because I reject the right-to-control test, I necessarily reject the concept of “joint” control embodied in the Court’s conclusion that a “co-employer” relationship exists in this case. Further, I do not agree that the Legislature permits such a concept, generally, under the workers’ compensation scheme when it has expressly provided for one, but only in a narrow circumstance.
Tandem hired Alvarado and provided workers’ compensation insurance that covered Alvarado’s injury. Tandem is Alvarado’s “employer” as defined by the Act and under the test outlined by Ammean. As such, Alvarado’s common law claims against Tandem are barred by the Act’s exclusivity provision. Accordingly, I concur in the Court’s judgment.
. See 111 S.W.3dat 136.
. Tex Lab.Code § 401.001(18).
. Id. § 408.001(a).
. 18 S.W.3d 828 (Tex.App.-Beaumont 2000, pet. dism’d by agr.).
. Mat 831.
. Id.
. Id.
. 94 S.W.3d 513, 537 (Tex. 2002) (plurality op.).
. See, e.g., Hughes Wood Prods., Inc. v. Wagner, 18 S.W.3d 202, 206-07 (Tex. 2000); Reed Tool Co. v. Copelin, 610 S.W.2d 736, 739 (Tex. 1980).
. Ill S.W.3dat 145.
. Id. at 145-46.
. Id. at 140; Tex. Lab.Code §§ 91.001-.063.
. Tex. Lab.Code § 91.042(c).
. Compare id. § 91.042(c) with id. § 408.001(a). See also Tex. Workers' Compensation Ins. Fund v. Del Indus., Inc., 35 S.W.3d 591, 596 (Tex. 2000).
. Del Indus., 35 S.W.3d at 596.
. See Tex Lab.Code § 91.042(b).
. See Garza v. Excel Logistics, Inc., 100 S.W.3d 280, 283-88 (Tex.App.-Houston [1st Dist.] 2002, pet. filed); Ingalls v. Standard Gypsum, L.L.C., 70 S.W.3d 252, 258 (Tex.App.-San Antonio 2001, pet. denied); Brown v. Aztec Rig Equip., Inc., 921 S.W.2d 835, 847 (Tex.App.-Houston [14th Dist.] 1996, writ denied); Gen. Accident Fire & Life Assurance Corp. v. Callaway, 429 S.W.2d 548, 549-51 (Tex.App.-Houston [1st Dist.] 1968, no writ).
. See, e.g., Ingalls, 70 S.W.3d at 258; Brown, 921 S.W.2d at 847.
. Ingalls, 70 S.W.3d at 256-57.
. Brown, 921 S.W.2d at 838.
. See Tex Lab.Code § 91.042(c).
. Brown, 921 S.W.2d at 838.
. See, e.g., id. at 847.
. See, e.g., Ar.Rev.Stat. § 23-1022(A); Cal. Lab.Code §§ 3601, 3602; Or.Rev.Stat. § 656.018(3); R.I. Gen. Laws § 28-29-2(3)(C); Utah Code Ann. §§ 35-1-43, 35-1-60.
. Tex. Lab.Code§ 417.001.
. See Brown, 921 S.W.2d at 847.
Reference
- Full Case Name
- WINGFOOT ENTERPRISES D/B/A Tandem Staffing, Petitioner, v. Marleny ALVARADO, Respondent
- Cited By
- 147 cases
- Status
- Published