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This entry was published on 2014-09-22
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SECTION 56
Subcontractors
Workers' Compensation (WKC) CHAPTER 67, ARTICLE 4
§ 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.