Summary: A leased or borrowed employee is defined as one who is dispatched by his employer to another for some service; the leased employee must be loaned with his consent and he must come under the exclusive control and direction of the employer to whom he is leased. Examples of such a status include, but are not limited to, temporary office workers, such as Kelly Girls, or workers leased from an employment agency by a contractor to construct a building or drive trucks.

Questions then arise when the leased employee is injured on the job. Does workers compensation or general liability insurance apply? If workers compensation applies, is it the exclusive remedy for the injured worker? Whose policy applies, the lessor's or the lessee's? With reference to the party that must cover the loss, can that party then seek recompense or pro-rata payment from the other involved party?

This article discusses these issues.