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Subcontractor bonding

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hawaiisansei

Junior Member
What is the name of your state? Hawaii

We are a licenced contractor who regularly hire out for traffic control guards (licensed and insured) when we work on high-traffic roads and highways.

We have been approached by ex-employees from one guard service to hire them at a lower rate. We would consider hiring them as subcontractors, but would individual bonding cover them for accidents or on-the-job injuries, or should we require them to provide liability and workers compensation insurance as well?

Thanks
 


T

TracyMT

Guest
Yep, if you provide anything for them at all, they are considered employees, not subs. If you want them as subs, they have to provide all their own proofs, or exemptions. If you hire them as subs, and they don't have coverage, you can be liable.
 

hawaiisansei

Junior Member
Thanks for the input. but my question is if they are individually bonded, would this cover any liability concerns?

My main concern is should any of them cause an accident on the highway or should get hurt on the job, would we be liable or would their being bonded relieve us of this liability?

Also, they would not be considered employees. They travel to and from the jobsites with their own vehicles and provide their own hard hats, vest, etc. We do not provide any equipment for them.
 
T

TracyMT

Guest
Require them to provide proof of their own liability insurance, and workers' comp, if possible. That would relieve you of being responsible if anything was to happen.
I don't know about your state, but in Montana, being bonded only covers financial issues (if a cont. were to not pay a sub), not insurance issues.
 

HomeGuru

Senior Member
hawaiisansei said:
What is the name of your state? Hawaii

We are a licenced contractor who regularly hire out for traffic control guards (licensed and insured) when we work on high-traffic roads and highways.

We have been approached by ex-employees from one guard service to hire them at a lower rate. We would consider hiring them as subcontractors, but would individual bonding cover them for accidents or on-the-job injuries, or should we require them to provide liability and workers compensation insurance as well?

Thanks

**A: ok, the accurate answer is, if they are not consided independent contractors under both the IRS and State DOL laws, then they will be considered employees.
Unless these employees have their own legally state and federal registered company, with the proper insurance and bonding in place for the type of business, you should not hire them unless they are going to be employees. You should be consulting with your company's legal counsel as this is a complicated issue.
Mahalo nui loa.
 

hawaiisansei

Junior Member
Thanks, that's what I thought but I couldn't find anything in the DOL website that was very specific.

I think we'll have to stick to our regular TC guys who are licensed and insured.

Aloha!
 

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