New York: Employer of Undocumented Alien Still Enjoys Exclusivity in Third-Party Action Claiming Indemnification or Contribution

New York: Employer of Undocumented Alien Still Enjoys Exclusivity in Third-Party Action Claiming Indemnification or Contribution

A New York appellate court recently held that an employer does not forfeit the exclusivity defense in third-party actions for indemnification or contribution filed against it on the basis that the employer hired an undocumented alien.  The third-party plaintiff contended that the employer should not be able to enjoy the protections of N.Y. Work. Comp. Law § 11 (the exclusive remedy provision), after violating the Immigration Reform and Control Act (8 USC § 1324a).  While the court was somewhat sympathetic, indicating that ordinarily a party should not be able to take advantage of a wrong, it countered that it was not enforcing or recognizing rights arising from an illegal oral employment contract between the employer and the undocumented workers.  The undocumented workers enjoyed the benefit of the workers’ compensation laws; the employer should as well.

Thomas A. Robinson, J.D., the Feature National Columnist for the LexisNexis Workers’ Compensation eNewsletter, is a leading commentator and expert on the law of workers’ compensation.

LexisNexis Online Subscribers: Citations below link to Lexis Advance. Bracketed citations link to lexis.com.

See New York Hosp. Med. Ctr. v. Microtech Contracting Corp., 2014 N.Y. LEXIS 170 (Feb. 13, 2014) [2014 N.Y. LEXIS 170 (Feb. 13, 2014)]

See generally Larson’s Workers’ Compensation Law, § 121.03 [121.03]

Source: Larson’s Workers’ Compensation Law, the nation’s leading authority on workers’ compensation law.

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