Q: Our association is considering contracting some employees to allied associations. Under this arrangement, our association would manage employees' benefits and compensation, and the allied association would oversee employees' day-to-day activities. If the allied association were sued for acts of these contract employees, could our association be liable?
A: Yes, the primary association would be liable because it retains an employer-employee relationship with "contracted out" employees. This association may be concerned that it retains liability for these employees yet forfeits control over their day-to-day activities. However, in many situations this risk may be …
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