KRS 342.690: Exclusiveness of liability.

(1) If an employer secures payment of compensation as required by this chapter,

the liability of such employer under this chapter shall be exclusive and in place

of all other liability of such employer to the employee, his legal representative,

husband or wife, parents, dependents, next of kin, and anyone otherwise

entitled to recover damages from such employer at law or in admiralty on

account of such injury or death. For purposes of this section, the term

"employer" shall include a "contractor" covered by subsection (2) of KRS

342.610, whether or not the subcontractor has in fact, secured the payment of

compensation. The liability of an employer to another person who may be liable

for or who has paid damages on account of injury or death of an employee of

such employer arising out of and in the course of employment and caused by a

breach of any duty or obligation owed by such employer to such other shall be

limited to the amount of compensation and other benefits for which such

employer is liable under this chapter on account of such injury or death, unless

such other and the employer by written contract have agreed to share liability

in a different manner. The exemption from liability given an employer by this

section shall also extend to such employer's carrier and to all employees,

officers or directors of such employer or carrier, provided the exemption from

liability given an employee, officer or director or an employer or carrier shall not

apply in any case where the injury or death is proximately caused by the willful

and unprovoked physical aggression of such employee, officer or director.

(2) If an employer fails to secure payment of compensation as required by this

chapter, an injured employee, or his legal representative in case death results

from the injury, may claim compensation under this chapter and in addition may

maintain an action at law or in admiralty for damages on account of such injury

or death, provided that the amount of compensation shall be credited against

the amount received in such action, and provided that, if the amount of

compensation is larger than the amount of damages received, the amount of

damages less the employee's legal fees and expenses shall be credited

against the amount of compensation. In such action the defendant may not

plead as a defense that the injury was caused by the negligence of a fellow

servant, that the employee assumed the risks of his employment, or that the

injury was due to the contributory negligence of the employee.

(3) An employer shall retain all common law defenses against any action by an

employee who elects not to be covered, as provided under subsection (6) of

KRS 342.650.

(4) (a) Notwithstanding any voluntary agreement entered into between the

United States Department of Labor and a franchisee, neither a franchisee

nor a franchisee's employee shall be deemed to be an employee of the

franchisor for any purpose under this chapter.

(b) Notwithstanding any voluntary agreement entered into between the

United States Department of Labor and a franchisor, neither a franchisor

nor a franchisor's employee shall be deemed to be an employee of the

franchisee for any purpose under this chapter.

(c) For purposes of this subsection, "franchisee" and "franchisor" have the

same meanings as in 16 C.F.R. sec. 436.1.