Oregon Court Sheds Light on Workers’ Comp in Staffing Agency Case
Portland, OR – September 6, 2025 – When a worker dies on the job, figuring out who’s responsible for workers’ compensation can get messy, especially with staffing agencies in the mix. That’s exactly what happened in a recent Oregon case, and on September 4, 2025, the Oregon Court of Appeals made things a bit clearer in Employer Solutions Staffing Group, LLC v. SAIF Corporation. The ruling sorted out a tricky dispute over who should cover benefits after Jared Zeigler’s tragic death at a construction site.
Zeigler was working on the Sixes River project, run by Billeter Roads & Forestry (BRF), when he passed away. He’d been hired through Atlas Leasing, a staffing firm working for Employer Solutions Staffing Group (ESSG), a big national agency. The setup was complicated—ESSG’s contract named Billeter Marine, LLC as the client, not BRF, even though Zeigler worked at BRF’s site. All these companies shared some ownership and office space, but kept separate payrolls, which muddied the waters when Zeigler’s spouse filed a workers’ comp claim.
Each company—ESSG, Atlas, and BRF—pointed fingers, saying they weren’t responsible. The case landed with the Workers’ Compensation Board, which held a three-day hearing. The board decided ESSG was on the hook, since they knew Zeigler was working at BRF’s project, paid his wages, and collected fees. That was enough to show an “implied” contract, making ESSG liable for the benefits.
ESSG pushed back, arguing there was no formal contract with BRF and pointing to a separate lawsuit where BRF had called itself the employer. The Court of Appeals wasn’t convinced. They said the prior lawsuit didn’t lock anyone into a final decision, and the evidence clearly showed ESSG was the employer. The court also upheld $32,000 in legal fees for Zeigler’s attorney.
This case is a wake-up call for staffing agencies and insurers: courts care about how work actually gets done, not just what’s on paper. Clear contracts and communication are key to avoiding costly disputes.
Sources: Insurance Business America, Justia Law, posts on X