2017 Kentucky Revised Statutes CHAPTER 342 - WORKERS' COMPENSATION .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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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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