Hospital and Management Company Both Liable for Same OSHA Violation at Shared Worksite: What Can You Do to Avoid “Single-Employer” Liability?
A recent federal appeals court ruling illustrates the risks of “single-employer” liability for OSHA citations for common business arrangements today. These involve separate companies that perform different functions but share certain commonalities, such as a worksite, corporate policies, management, or ownership. The 11th U.S. Circuit Court of Appeals’ decision last month serves as an important reminder for companies that use similar business models, which are especially prevalent in the healthcare industry . We’ll explain what happened in the Florida case and give you four steps to help avoid single-employer liability across multiple businesses. What Happened? The 11th Circuit ruled on June 18 that a F lorida psychiatric hospital and a hospital management company operated as a single employer for liability purposes under the Occupational Safety and Health (OSH) Act. This “single employer” determination allows the Occupational Safety and Health Administration (OSHA) to cit...