Construction Contractors As Employers

Where contractors hire subcontractors for construction projects, the latter’s laborers are treated as employees depending on the frequency and consistency with which the contractor conducts such business. For example, a small business owner employing a subcontractor to expand his storefront on a one-time basis is unlikely to be considered an employer under workers’ compensation statutes. Conversely, a large business regularly engaged in construction and maintenance, or one that engages in construction or maintenance itself, is much more likely to be treated as an employer of the construction workers under the subcontract.