A guest worker who almost lost his foot in a bike accident is facing a $50,000 bill for medical expenses because the local company which employed him insists it is not responsible.

James Koechley was one of eight staff hired to work at hardware store Gorham's Ltd. last year.

While in Bermuda, he was in a bike accident. According to an e-mail to his father Kris from reconstructive surgeon Christopher Johnson on January 3, the 23-year-old "could have died or lost his (right) foot" as a result.

After 31 days at King Edward VII Memorial Hospital undergoing operations and plastic surgery, he was handed a bill from the Bermuda Hospitals Board for $45,337 plus up to $5,000 in physician fees.

His father, who lives in the US, contacted Gorham's manager and part-owner Andrew Mackay to ask about his son's medical insurance but claims he was told his son had been hired as a "consultant" and so should have had private cover.

Documents seen by The Royal Gazette show Mr. Koechley and other employees of Total Fixture Services (TFS) were invoiced in November for stocking shelves with merchandise, cleaning and creating Christmas displays overnight.

According to Mr. Koechley Sr., and a copy of the work permit seen by The Royal Gazette, the workers appear to have been brought in under old permits for a previous contractor.

The work permit lists the name as: 'Representative #7'.

It states, "The holder of this certificate is permitted to land and engage in gainful occupation as: 'Representative from Prime Retail Services Inc. (Periodic)', with: Gorham's Ltd, commencing: 01 August 2008, ending: 01 August 2009."

Prime Retail Services Inc. is a separate company to Total Fixture Services, a store remodelling business based in Toledo, Ohio.

Mr. Koechley, a re-fitter with TFS, flew to Bermuda at the start of November to work in the store but was then in a scooter accident with a car on December 13.

Speaking from the family home in Ohio, his father said: "After the accident I flew to Bermuda to be with my son. I contacted Mr. Mackay to ask if he would pick up any of the medical bills but he said 'no' because my son was a consultant.

"So, I read him back the work permit and said he wasn't working for Prime Retail Services but for TFS. Mr. Mackay said, 'Yes, that was a company we hired to work down here prior to your son's company but it didn't work out so we terminated them and brought your son's company down'."

Mr. Koechley Sr. said: "On the back of the work permit it says medical insurance and social insurance contributions are the responsibility of the employer, but Mr. Mackay said he wasn't picking anything up."

He also claimed his son and the other TFS workers were employed overnight, out of sight from the other employees.

"One of James' co-workers described himself as a 'stealth worker'. He said they were told to come through the back door after hours," Mr. Koechley Sr. said.

"It seems that Gorham's is employing people illegally, without benefits, outside of union knowledge.

"Mr. Mackay allowed them to work in the store on invalid work permits. Those weren't the actual permits they were supposed to have."

The 47-year-old salesman added: "I am so hurt by all this and James is just distraught. This whole experience has been very traumatic for my son and family.

"I am angry that Gorham's has allowed this to happen. The work permit was not even in my son's name."

He said he has contacted both the Immigration Department and Department of Labour and Training, but that "no one seems to care".

"This happened to my son but it's not a story about my son, it's about what's happening behind the scenes in Bermuda.

"I told the Government they were losing out on money as there were eight people working on old permits, not new ones, but nothing has come of it. Here is a guest worker but no one seems to want to hear about it."

Mr. Koechley said his son's medical bills would have been much higher but that when Dr. Johnson found out about the situation with the work permit and lack of medical cover, he waived his fee.

"I can't imagine how much that would have been, I think it would be at least $20,000," said Mr. Koechley Sr. "When we contacted Gorham's and they said they wouldn't cover the medical expenses, Dr. Johnson told my son, 'You won't see a bill from me'. He is a great gentleman.

"But I feel he should be paid, and the hospital should be paid. My son's foot was almost severed. They saved it and also possibly his life."

Mr. Koechley said his son also suffered blood clots in his lungs (pulmonary embolisms) and was twice admitted to Intensive Care.

"He was having a hard time breathing," he said.

His son is now back in the US but must still undergo two operations and physiotherapy.

"It is such a devastating injury," said his father. "And for my son to file for medical bankruptcy, that would be a blemish on anyone's record. He is only young."

Mr. Mackay told The Royal Gazette: "I have never met Mr. Koechley Sr. but I have had a conversation with him regarding James. He was never hired by Gorhams as a consultant. TFS hired him to work for them. They have his employment details, insurance/workers' compensation etc.

"The TFS staff did work at night. People are more productive at night since there are no customers interrupting the moving of fixtures, etc. It is also safer for the customers."

Regarding the work permits, Mr. Mackay said: "The paperwork was in motion when this transpired so it was a period of transition unfortunately. They all have received proper paperwork as of January."

He added: "In essence it sounds like Mr. Koechley does not want to accept that his son acted irresponsibly and it will cost him."

TFS owner Heather Davis told The Royal Gazette that under US law, she provided "workers' compensation" for James Koechley. "It means if an employee is injured at work, a medical and wage insurance is provided for him," she said.

Asked whether it was her understanding it was Gorham's responsibility to provide further medical insurance for work undertaken in Bermuda, Ms Davis said: "I won't comment on that. I am not sure what the Bermuda law was supposed to provide for an American citizen but under the law I have to protect an employee at work and have to provide a safe working environment.

"However, if he is in his own time and he is going out on a scooter on his day off, even in the US he would not be covered."

A spokesman for the Department of Immigration said under a full-time work permit, an employer in Bermuda must provide medical cover such as HIP (Health Insurance Plan), but for temporary permits, "it is basically the foreign company's responsibility".

A spokeswoman for the Department of Social Insurance said if someone is working for more than 26 weeks, the Bermuda company is responsible for arranging social and health insurance.

"If he was working for less than 26 weeks, his US company should have had him insured," she said.

Responded Mr. Koechley Sr.: "They (the TFS workers) were told that it (the contract) could be indefinite."

Acting Chief Immigration Officer, Rozy Azhar, said she wanted to speak to Mr. Koechley about the alleged immigration infraction.

Ms Azhar said under the Bermuda Immigration and Protection Act 1956 there are instances when blanket work permits can be used by local companies to:

• Bring in technicians to maintain equipment

• Or bring in technicians to install or maintain equipment, software or fixtures that will be or are normally under warranty by the specific vendor.

"These permits are specifically used where the company doesn't know in advance who will be assigned to travel to the Island when the technician is required. However as long as only one person is using that permit to enter Bermuda at any given time, the overseas company has the flexibility to send to Bermuda whichever employee is available."

She said the description "representative from a particular company" implied the person using the permit was an employee of the overseas company and it was the foreign firm to be paid by the local company, not the individual travelling on the permit.

Ms Azhar added: "That said, from a policy and legal standpoint the Immigration Department is gravely concerned about the allegations that Mr. Koechley was an employee of Total Fixtures Services LLC, but travelling on a work permit which said he was a representative from Prime Retail Services Inc.

"And if this is the case, then the employer has contravened the Act. As such, Mr. Koechley and the public can be assured that this matter will be fully investigated as a matter of priority."