A recent ruling from the Oregon Court of Appeals has clarified who is responsible for workers’ compensation after a tragic workplace accident involving a staffing agency. On September 4, the court settled a dispute stemming from the death of Jared R. Zeigler, who died while working on a project managed by Billeter Roads & Forestry (BRF).
Zeigler was hired through a chain of staffing companies. First, Atlas Leasing recruited him for Employer Solutions Staffing Group (ESSG), a national staffing agency. Although Atlas’s contract listed Billeter Marine, LLC (BM) as the official worksite client, Zeigler actually worked at sites run by BRF. Adding to the confusion, ESSG, Atlas, BM, and BRF shared ownership and office space but maintained separate payrolls and bank accounts.
After Zeigler’s death, his spouse filed a workers’ compensation claim. ESSG, Atlas, and BRF each denied they were responsible. The case went to the Workers’ Compensation Board, which ruled that ESSG was the liable employer. The board pointed out that ESSG knew Zeigler was working at BRF’s project, paid his wages, and collected service fees through Atlas. These facts showed an implied contract between ESSG and BRF, holding ESSG accountable for workers’ comp benefits.
ESSG appealed the decision, arguing they should not be liable because there was no direct written contract with BRF. They also cited a previous legal action where BRF claimed to be the employer. The court dismissed these arguments, noting the earlier case ended in a settlement and wasn’t a final court ruling. The court found strong evidence supporting the board’s finding that ESSG was responsible, even without a signed contract.
The court also confirmed the board’s award of $32,000 in attorney’s fees to the claimant’s lawyer, recognizing their significant role in the case. The ruling focused on the actual behavior and relationships between the companies, not just written contracts or insurance policies.
This decision sends a clear message to staffing firms, employers, and insurers. When it comes to workers’ compensation, courts will look beyond paperwork and focus on the reality of who controls the work and payroll. It reminds everyone involved to keep clear agreements and open communication, especially when multiple parties take part in hiring and insurance.
The ruling is now final and highlights the importance of understanding how responsibility is shared when staffing agencies and employers work together. In the end, it’s the facts of the working relationship that matter most when serious accidents happen.