N.Y. Workers' Compensation Law § 56: Subcontractors

§ 56. Subcontractors. A contractor, the subject of whose contract is,

involves or includes a hazardous employment, who subcontracts all or any

part of such contract shall, in any case of injury or death to any

employee, arising out of and in the course of such hazardous employment,

be liable for and pay compensation to such employee or persons entitled

to compensation on the death of such employee, and in any such case of

injury or death where the employer of such employee would be required to

make payments into the special funds provided by subdivisions eight and

nine of section fifteen and subdivision three of section twenty-five-a,

the contractor or, if insured, his insurance carrier shall be liable for

and pay into such special funds the amounts required by such

subdivisions eight and nine of section fifteen and subdivision three of

section twenty-five-a to be paid by such employer; unless the

subcontractor primarily liable for such compensation or payments into

such special funds has secured compensation therefor as provided in this

chapter.

Any contractor, or his insurance carrier, who shall, under the

provisions of this section, become liable for such compensation or

payments into such special funds may recover the amount of such

compensation paid or payments made into such special funds from the

subcontractor primarily liable therefor. The claim for such recovery

shall constitute a lien against any moneys due or to become due to the

subcontractor from such contractor. Such claim for recovery, however,

shall not affect the right of such employee or persons entitled to

compensation on the death of such employee or the chairman from

recovering such compensation or payments into such special funds from

the contractor or his insurance carrier.

Notwithstanding any other provision of this chapter, in any case of

injury or death to an executive officer of any corporation who at all

times during the period involved owns all of the issued and outstanding

stock of the corporation and holds all of the offices pursuant to

paragraph (e) of section seven hundred fifteen of the business

corporation law or to a self-employed person or to a partner of a

partnership as defined in section ten of the partnership law, the

contractor or, if insured, his insurance carrier shall not be liable for

the payment of compensation or medical expenses to or on behalf of such

executive officer, self-employed person or partner of a partnership or

to his surviving spouse, children and dependents as defined by section

sixteen of this chapter solely because of the injury or death of such

executive officer, self-employed person or partner.

Notwithstanding any other provision of this chapter, in any case of

injury or death of any one of two executive officers of any corporation

who at all times during the period involved between them own all of the

issued and outstanding stock of such corporation and hold all of such

offices pursuant to paragraph (e) of section seven hundred fifteen of

the business corporation law provided, however, that each officer must

own at least one share of stock, the contractor or, if insured, his

insurance carrier shall not be liable for the payment of compensation or

medical expenses to or on behalf of such executive officers or to their

surviving spouse, children and dependents as defined by section sixteen

of this chapter solely because of the injury or death of any such

executive officers.

An owner of timber other than farm lands, who contracts with another

to carry on or perform work or service in connection therewith, which

work or service is, involves or includes a hazardous employment, shall

for the purposes of this section be deemed a contractor, and such other

a subcontractor.