Disability Law

In Surestaff, Inc. v. Azteca Foods, Inc., the borrowing employer contended that the loaning employer, a temporary employment agency, was not entitled to reimbursement, because it had orally agreed to be responsible for the workers' compensation coverage for the temporary workers it provided. The Appellate Court of Illinois agreed, finding that the agency had made such an agreement, which constituted "an agreement to the contrary" that waived its right to reimbursement.

Part of the reason for the dispute was that the parties' intent was not set forth in a written agreement. A better practice would have been to specify which entity was primarily liable under the Act, with either a specific reference to the applicable provision of the Act or the inclusion of the phrase "waiver of the right to reimbursement."