Marshall v. Job Finder Emp't. Serv.

No. 09-054072 (Mo. Lab. & Indust. Rel. Comm’n Feb. 10, 2015)

Factual Background:

Claimant worked at University of Missouri as a temporary employee through Job Finders.  In the Claim, Job Finders was the alleged sole employer.  However, Job Finders did not timely answer the Claim.  Claimant amended his claim to include the University of Missouri as an Employer along with Job Finders. Job Finders again did not timely answer the Claim but the University of Missouri did. Ms. Ann Williams was the principal and only shareholder of Job Finders. Job Finders did not have workers’ compensation insurance on the date of injury.

ALJ Decision:

The ALJ found Ann Williams to be personally liable for Claimant’s benefits due to her complete domination of Job Finders and her failure to abide by their legal and statutory duty to purchase WC insurance. The ALJ found MU to be the statutory employer and ultimately both Job Finders and MU are jointly and severally liable for compensation owed to the employee. 

Analysis/Holding:

The Commission found the ALJ did not have the authority to pierce the corporate veil under strict construction of WC Law because there is no provision of the Law authorizing an award that orders benefits be paid by a corporate officer or principal or any other person/entity who is not a party to the case. The award against Williams is also improper because Claimant did not name her as a party to the claim and as a result the Division never provided her with notice of a hearing as require by statute. The Commission reversed the ALJ decision in this regard.

The Commission relied on Section 287.030.1 for determining whether MU was a joint or statutory employer.  The Commission found the evidence established MU used the service of Claimant for pay as required under the statute. Claimant performed custodial services at the direction of MU.  MU subsequently paid Job Finders for using Claimant’s services. The Commission affirmed the ALJ decision that MU was the Employer and that Claimant was in the joint service of Job Finders and MU at the time of the injury.

The Takeaway:

ALJ cannot hold corporate officers/principals of the employer personally liable under the WC Law for benefits if not named as a party to the case.