New York Hospital Medical Center v. Microtech Contracting Corp.
This case addresses whether an employer's protection from third-party claims under Workers' Compensation Law § 11 is lost when its injured employees are undocumented aliens. Plaintiff New York Hospital Medical Center sued defendant Microtech Contracting for common-law and contractual contribution and indemnification, following a judgment paid to Microtech's injured undocumented employees, Luis and Gerardo Lema. The hospital argued that Microtech's alleged violation of the Immigration Reform and Control Act (IRCA) in hiring the Lemas should preclude it from invoking Section 11's shield. Both the Supreme Court and Appellate Division dismissed the hospital's claims, affirming that employee immigration status does not negate an employer's statutory rights. The Court of Appeals affirmed, holding that the illegality of the employment contract under IRCA does not override the employer's protections under Workers' Compensation Law § 11, particularly as the hospital did not pursue conflict preemption on appeal.