TLC COMPANIES, AS INSURED BY ZURICH NORTH AMERICA PETITIONER
v.
LEONEL CASAS, LIS LOGISTICS LLC, UNINSURED EMPLOYERS’ FUND, CARRIERS CONCEPTS, And HON. JANE RICE WILLIAMS, ADMINISTRATIVE LAW JUDGE RESPONDENTS
No. 201400638
Kentucky Workers Compensation
Commonwealth of Kentucky Workers’ Compensation Board
September 14, 2018
APPEAL
FROM HON. JANE RICE WILLIAMS, ADMINISTRATIVE LAW JUDGE.
COUNSEL FOR PETITIONER: LMS HON. WALTER A. WARD
COUNSEL FOR RESPONDENT: LMS HON. JOHN W. SPIES
UNINSURED EMPLOYERS’ FUND: LMS HON. WILLIAM JONES
RESPONDENT: USPS CARRIER CONCEPTS
MEDICAL PROVIDER: USPS DR. JAMES RICE
BEFORE: ALVEY, Chairman, STIVERS and RECHTER, Members.
OPINION
RECHTER, Member.
TLC
Companies, as insured by Zurich North America, appeals from
the March 18, 2015 and October 28, 2016 Interlocutory Orders,
and the March 19, 2018 Final Opinion, Award and Order
rendered by Hon. Jane Rice Williams, Administrative Law Judge
(“ALJ”). In the first interlocutory decision, the
ALJ determined Leonel Casas was an employee of LIS Logistics,
LLC at the time of the injury and was covered by Zurich for
workers’ compensation benefits at the time of the
injury. On appeal, TLC and Zurich argue the ALJ’s
decision regarding coverage is not in conformity with the
provisions of the Workers’ Compensation Act, and
ignored an employee leasing agreement between TLC and LIS.
For the reasons set forth herein, we reverse in part.
The
facts underlying the issue on appeal are largely undisputed.
Casas worked as a commercial truck driver and was injured in
a motor vehicle accident on October 31, 2013. He worked for
LIS, a trucking company. LIS had previously contracted with
TLC to provide leased employees, though Casas was not an
employee leased by TLC to LIS. TLC secured a policy with
Zurich to cover the employees it leased to LIS. The question
before the ALJ, and now before this Board, is whether
TLC’s policy with Zurich covered Casas’ injury.
Casas
testified he went to LIS to apply for a truck driving
position in early October 2013. He was sent to the office of
Carrier Concepts, a company not affiliated with either LIS or
TLC, where he completed an application. He then was directed
to a medical examiner where a drug screen was completed. He
was hired by the owner, Gabriel Cardena, and began driving
within two or three days. Casas was paid by LIS. He delivered
loads from a distribution center in Kentucky to Kroger stores
in Tennessee. He was injured on October 31, 2013 in a motor
vehicle accident.
Kathleen
Clark, Director of Risk Services for TLC, testified TLC is a
professional employer organization (“PEO”). It
serves as the administrative employer for employees assigned
by its clients. TLC performs payroll processing, tax filings,
background screening, and unemployment claim processing.
Additionally, TLC provides workers’ compensation
insurance for the assigned employees, and facilitates the
handling of any claims.
LIS and
TLC signed a service agreement, which Ms. Clark produced and
discussed during her deposition. The agreement sets forth
certain procedures which LIS must follow in order to...
