{"data":{"id":"us-ky/krs-342.700","jurisdiction":"us-ky","citation":"KRS 342.700","heading":"Remedies when third party is legally liable -- Liability and indemnification","body":"rights of principal contractors, intermediates, and subcontractors --\nRequirement of waiver of remedies for award of contract unlawful.\n(1) Whenever an injury for whic h compensation is payable under this chapter has been\nsustained under circumstances creating in some other person than the employer a\nlegal liability to pay damages, the injured employee may either claim compensation\nor proceed at law by civil action again st the other person to recover damages, or\nproceed both against the employer for compensation and the other person to recover\ndamages, but he shall not collect from both. If the injured employee elects to\nproceed at law by civil action against the other pe rson to recover damages, he shall\ngive due and timely notice to the employer and the special fund of the filing of the\naction. If compensation is awarded or paid under this chapter, the employer, his\ninsurance carrier, the special fund, the Kentucky coal w orkers' pneumoconiosis\nfund, and the uninsured employer's fund, or any of them, having paid the\ncompensation or having become liable therefor, may recover in his or its own name\nor that of the injured employee from the other person in whom legal liability for\ndamages exists, not to exceed the indemnity and medical expenses paid and payable\nto or on behalf of the injured employee, less a pro rata share of the employee's legal\nfees and expense. The notice of civil action shall conform in all respects to the\nrequirements of KRS 411.188(2).\n(2) A principal contractor, intermediate, or subcontractor shall be liable for\ncompensation to any employee injured while in the employ of any one (1) of his\nintermediate or subcontractors and engaged upon the subject matter of the contract,\nto the same extent as the immediate employer. Any principal, intermediate, or\nsubcontractor who pays the compensation may recover the amount paid from any\nsubordinate contractor through whom he has been rendered liable under this section.\nEvery claim to compensation under this subsection shall in the first instance be\npresented to and instituted against the immediate employer, but the proceedings\nshall not constitute a waiver of the employee's rights to recover compensation under\nthis chapt er from the principal or intermediate contractor nor shall the claim be\nbarred by limitations, if the claim is filed against the principal or intermediate\ncontractor within one (1) year after a final unappealed order has been rendered by an\nadministrative law judge determining that immediate employer has insufficient\nsecurity to pay the full and maximum benefits that could be determined to be due\nhim under this chapter. The collection of full compensation from one employer\nshall bar recovery by the employee  against any other. But he shall not collect from\nall a total compensation in excess of the amount for which his immediate employer\nis liable. This subsection shall apply only in cases where the injury occurred on, in,\nor about the premises on which the pr incipal contractor has undertaken to execute\nwork or which are under his control otherwise or management.\n(3) It shall be considered to be contrary to public policy and unlawful for any owner or\nemployer to require another employer to waive its remedies gr anted by this section\nas a condition of receiving a contract or purchase order. Furthermore, in selecting\nbetween two (2) or more contractors or suppliers, consideration may not be given by\nan owner or employer to whether one (1) contractor or supplier vol untarily waives\nits remedies under this section or offers to accept lesser compensation than another\ncontractor or supplier for that waiver of remedies.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47624","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:32Z","sha256":"bdf89679f4bec0c72e5086fdff1161e111a5d42a5d5d19b282cc52465fff81cf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.690","next":"us-ky/krs-342.710"},"notice":"GroundRules: Original legal text. Not legal advice."}