The Alaska Supreme Court recently issued a seminal decision in the case of Amos v Tidwell and State of Alaska, Workers’ Compensation Benefits Guaranty Fund, Op No. 7709 (7/26/24).
In 2019, David Tidwell, an unlicensed and uninsured contractor, was hired to construct a shed for a homeowner. In turn, he hired Samuel Amos and others to provide labor. He promised to pay Mr. Amos from the proceeds.
A few days into the project, Mr. Amos fell from the roof and was injured so severely that Mr. Tidwell called an ambulance to have him transported to the hospital. A claim was filed on his behalf against Mr. Tidwell. Because Mr. Tidwell did not have workers compensation insurance, a claim was filed against the Guaranty Fund, which is set up to reimburse injured workers when their Employers were not insured.
At the hearing, Mr. Tidwell claimed that he did not “hire” Mr. Amos as an Employee, that instead he hired him because they were buddies. He claimed he did not promise to pay Mr. Amos for his labor. Instead, he claimed that Mr. Amos agreed to “help” him with the construction in exchange for which Mr. Tidwell would “help” Mr. Amos with money.
The Alaska Workers Compensation Board adopted Mr. Tidwell’s reasoning, holding that there was a “buddy” exception to an Employer-Employee relationship so that when one hired a friend, the Employer is not required to provide insurance coverage.
The Board’s decision was appealed to the Alaska Workers Compensation Appeals Commission which likened Mr. Amos to a farm laborer and, as such, ruled that he was not eligible for workers’ compensation benefits.
The Alaska Supreme Court reversed both the Commission and the Board. In a lengthy opinion, it held, amongst other things, the following:
1. There is no such thing as a “buddy” exception to the requirement of an Employer to provide an Employee with workers compensation coverage.
2. An Employer must carry workers compensation insurance. It does not matter if:
a. The Employer is only making little income,
b. The Employer is unlicensed,
c. The Employer has another full-time job,
d. The Employer pays wages in cash.
The Employee won!
Keenan Powell has practiced Workers Compensation law in the State of Alaska for over 40 years and has dedicated her practice to Workers Compensation representing injured Alaskans handling hundreds of cases. www.keenanpowell.com.
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