Who is considered a statutory employer?

A statutory employer is defined as an employer who has a legal obligation to provide workers' compensation benefits to their employees as mandated by state laws. This requirement ensures that employees receive necessary medical and income benefits if they suffer work-related injuries or illnesses, regardless of whether the employer is negligent.

The role of a statutory employer is particularly crucial in the context of workers' compensation laws, as these laws aim to protect workers while also providing employers with specific legal protections from direct lawsuits related to workplace injuries. The legal framework establishes that if a worker is injured on the job, they can seek compensation through the workers' compensation system rather than suing their employer directly, which is a significant principle in many states.

Other options do not align with the definition of a statutory employer. Employing workers without an official contract does not automatically create a statutory employer. Outsourcing employee management refers to a business practice rather than establishing statutory employer status. Lastly, being responsible only for internships does not meet the criteria for the obligations associated with being a statutory employer. Thus, the focus on the legal obligation to provide benefits makes the second choice the correct answer.