Of course it can! It doesn't happen often, but when it does, there is always bad blood and expensive litigation!
Employers are often swayed to use temporary employment agencies for workers. The arrangements do have advantages. The agency takes care of wages, workers’ compensation insurance and employee benefits. However, these arrangements can go sour. An example of this is the case filed a day ago, Snelling Employment v. French Oils LLC. Snelling contends that its client failed to properly supervise its employee who then injured himself on the job. As a result, Snelling has paid more than $100,000 in workers’ compensation benefits. Snelling thinks that its client should pay that bill.
Employers should examine the agreements they sign with temp agencies to clearly articulate the rights and responsibilities of the parties. Perhaps a more thorough contract would have prevented this lawsuit or at least provided for a better resolution than a costly lawsuit.