50-6-113 - Liability of principal intermediate contractor or subcontractor. [Amended effective March 28, 2011. See the Compiler's Notes.] - Tennessee Statutes

50-6-113. Liability of principal intermediate contractor or subcontractor. [Amended effective March 28, 2011. See the Compiler's Notes.]

(a)  A principal contractor, intermediate contractor or subcontractor shall be liable for compensation to any employee injured while in the employ of any of the subcontractors of the principal contractor, intermediate contractor or subcontractor and engaged upon the subject matter of the contract to the same extent as the immediate employer.

(b)  Any principal contractor, intermediate contractor or subcontractor who pays compensation under subsection (a) may recover the amount paid from any person who, independently of this section, would have been liable to pay compensation to the injured employee, or from any intermediate contractor.

(c)  Every claim for compensation under this section shall be in the first instance 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 contractor or intermediate contractor; provided, that the collection of full compensation from one (1) employer shall bar recovery by the employee against any others, nor shall the employee collect from all a total compensation in excess of the amount for which any of the contractors is liable.

(d)  This section applies only in cases where the injury occurred on, in, or about the premises on which the principal contractor has undertaken to execute work or that are otherwise under the principal contractor's control or management.

(e)  A subcontractor under contract to a general contractor may elect to be covered under any policy of workers' compensation insurance insuring the contractor upon written agreement of the contractor, by filing written notice of the election, on a form prescribed by the commissioner, with the division. It is the responsibility of the general contractor to file the written notice with the division. Failure of the general contractor to file the written notice shall not operate to relieve or alter the obligation of an insurance company to provide coverage to a subcontractor when the subcontractor can produce evidence of payment of premiums to the insurance company for the coverage. The election shall in no way terminate or affect the independent contractor status of the subcontractor for any other purpose than to permit workers' compensation coverage. The election of coverage may be terminated by the subcontractor or general contractor by providing written notice of the termination to the division and to all other parties consenting to the prior election. The termination shall be effective thirty (30) days from the date of the notice to all other parties consenting to the prior election and to the division.

(f)  (1)  (A)  Any person engaged in the construction industry, including principal contractors, intermediate contractors and subcontractors, shall be required to carry workers' compensation insurance. [Amended effective March 28, 2011. See the Compiler's Notes.]

          (B)  The requirement set out in subdivision (f)(1)(A) shall apply whether or not the person employs fewer than five (5) employees. Sole proprietors and partners shall not be required to carry workers' compensation insurance on themselves.

          (C)  This subsection (f) shall not apply to any person building a dwelling or other structure, or performing maintenance, repairs, or making additions to structures, on the person's own property for the person's own use and for which the person receives no compensation.

     (2)  Nothing in this subsection (f) shall be construed to impact any person whose employment at the time of injury is casual as provided in § 50-6-106.

     (3)  For purposes of this subsection (f), “a person engaged in the construction industry” means any person or entity assigned to the Contracting Group as those classifications are designated by the rate service organization designated by the commissioner of commerce and insurance as provided in § 56-5-320.

     (4)  [Deleted by 2008 amendment.]

(g)  If anything in Acts 2008, ch. 1041 is deemed unconstitutional, the unconstitutional section shall be severed from the rest of the statute without affecting the constitutionality of the act as a whole.

[Acts 1919, ch. 123, § 15; Shan. Supp., § 3608a164; Code 1932, § 6866; T.C.A. (orig. ed.), § 50-915; Acts 1988, ch. 525, § 2; 1992, ch. 793, § 1; 1997, ch. 330, §§ 3, 4; 1998, ch. 1024, § 23; 1999, ch. 404, §§ 2, 3; 1999, ch. 520, § 41; 2008, ch. 1041, §§ 1-4; 2010 (1st Ex. Sess.), ch. 1, §§ 1, 2.]