Two workers employed by S.J. Owens Enterprises were injured in an explosion at the Chalmette Refinery and sued ExxonMobil and Chalmette Refining for negligence. The court ruled that both companies qualified as statutory employers under Louisiana law because their written contracts with S.J. Owens recognized them as such. This gave them immunity from tort lawsuits, meaning workers' compensation became the workers' only remedy. For subcontractors, this means your client's principal can pass statutory employer status to the project owner through contract language, limiting your ability to sue for injuries.
A written contract explicitly naming the principal as a statutory employer will be enforced—review all contracts for this language before signing
If your employer's contract contains statutory employer language, you likely cannot sue the principal for negligence; workers' compensation is your exclusive remedy