Why might a client prefer to be considered an employer for workers compensation purposes?

A client may prefer to be considered an employer for workers' compensation purposes primarily because this status helps to limit legal liability for negligence. When a company is recognized as the employer under workers' compensation laws, it often means that they enjoy certain protections regarding liability for workplace injuries. This framework typically requires employees to forgo the right to sue for negligence in exchange for receiving workers’ compensation benefits for work-related injuries, which simplifies the legal process and reduces the risk of potentially costly lawsuits.

By having this employer designation, the client can better manage the financial and legal consequences of workplace accidents. They are then in a position to provide a safer working environment and focus on compliance with relevant safety regulations, knowing that their potential liability is mitigated.

While considerations such as control over employees, avoiding overtime wages, and securing better employee benefits are essential aspects of employment relationships, they do not directly address the compelling reasons related to liability and risk management that come into play with workers' compensation status.