2013 Kentucky Revised Statutes CHAPTER 342 - WORKERS' COMPENSATION 342.700 Remedies when third party is legally liable -- Liability and indemnification rights of principal contractors, intermediates, and subcontractors -- Requirement of waiver of remedies for award of contract unlawful.
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342.700 Remedies when third party is legally liable -- Liability and
indemnification rights of principal contractors, intermediates, and
subcontractors -- Requirement of waiver of remedies for award of
contract unlawful.
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(2)
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Whenever an injury for which compensation is payable under this chapter has
been sustained under circumstances creating in some other person than the
employer a legal liability to pay damages, the injured employee may either
claim compensation or proceed at law by civil action against the other person
to recover damages, or proceed both against the employer for compensation
and the other person to recover damages, but he shall not collect from both. If
the injured employee elects to proceed at law by civil action against the other
person to recover damages, he shall give due and timely notice to the
employer and the special fund of the filing of the action. If compensation is
awarded under this chapter, the employer, his insurance carrier, the special
fund, and the uninsured employer's fund, or any of them, having paid the
compensation or having become liable therefor, may recover in his or its own
name or that of the injured employee from the other person in whom legal
liability for damages exists, not to exceed the indemnity paid and payable to
the injured employee, less the employee's legal fees and expense. The notice
of civil action shall conform in all respects to the requirements of KRS
411.188(2).
A principal contractor, intermediate, or subcontractor shall be liable for
compensation to any employee injured while in the employ of any one (1) of his
intermediate or subcontractors and engaged upon the subject matter of the
contract, to the same extent as the immediate employer. Any principal,
intermediate, or subcontractor who pays the compensation may recover the
amount paid from any subordinate contractor through whom he has been
rendered liable under this section. Every claim to compensation under this
subsection shall in the first instance be presented to and instituted against the
immediate employer, but the proceedings shall not constitute a waiver of the
employee's rights to recover compensation under this chapter from the
principal or intermediate contractor nor shall the claim be barred by limitations,
if the claim is filed against the principal or intermediate contractor within one (1)
year after a final unappealed order has been rendered by an administrative law
judge determining that immediate employer has insufficient security to pay the
full and maximum benefits that could be determined to be due him under this
chapter. The collection of full compensation from one employer shall bar
recovery by the employee against any other. But he shall not collect from all a
total compensation in excess of the amount for which his immediate employer
is liable. This subsection shall apply only in cases where the injury occurred on,
in, or about the premises on which the principal contractor has undertaken to
execute work or which are under his control otherwise or management.
It shall be considered to be contrary to public policy and unlawful for any owner
or employer to require another employer to waive its remedies granted by this
section as a condition of receiving a contract or purchase order. Furthermore,
in selecting between two (2) or more contractors or suppliers, consideration
may not be given by an owner or employer to whether one (1) contractor or
supplier voluntarily waives its remedies under this section or offers to accept
lesser compensation than another contractor or supplier for that waiver of
remedies.
Effective:July 14, 2000
History: Amended 2000 Ky. Acts ch. 514, sec. 27, effective July 14, 2000. -Amended 1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 65, effective December
12, 1996. -- Amended 1994 Ky. Acts ch. 181, Part 14, sec. 71, effective April 4,
1994; and ch. 495, sec. 1, effective July 15, 1994. -- Amended 1987 (1st Extra.
Sess.) Ky. Acts ch. 1, sec. 53, effective January 4, 1988. -- Created 1972 Ky.
Acts ch. 78, sec. 10, effective January 1, 1973.
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