Illegal Employment Contracts

An employer may claim that the employment contract was illegal and the employee should be denied workers’ compensation benefits. However, there is an important distinction to be made about illegal employment contracts. The employee is only denied workers’ compensation benefits if the contract called for the employee to perform illegal acts. That is the only time. If the contract was illegal because the employer should not have made it to begin with, for example the employee was a minor, the employee is still entitled to benefits in most cases.

Even if the employer himself is engaged in an illegal activity, an employee may still be entitled to workers’ compensation benefits. To illustrate this point, consider the following case:

Back in the days of Prohibition, statutes were enacted that prohibited serving alcoholic beverages to patrons of an establishment. A hostess was hired at one particular establishment to seat people and ask the patrons if they would like a drink. The bartender then poured the drinks and served them. Even though the serving of alcoholic beverages was illegal and the bartenders were not entitled to workers’ compensation benefits, the hostess was awarded benefits. Her particular actions of seating patrons and persuading them to have drink were not illegal; therefore, she was awarded workers’ compensation benefits.

B. The Distinction Between Employee And Independent Contractor

D. Illegally Hired Minors

F. Employee Has Falsified Employment Application