Print Friendly SENATE BILL NO. 1097 – Workers comp, third party liablty
SENATE BILL NO. 1097
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S1097.......................................by COMMERCE AND HUMAN RESOURCES
WORKER'S COMPENSATION - Amends existing law to provide that in worker's
compensation cases a third party shall include certain employers having
under them contractors or subcontractors; and to delete language excluding
the owner or lessee of premises or a business who is not the direct
employer of the workmen being employed.
02/03 Senate intro - 1st rdg - to printing
02/04 Rpt prt - to Com/HuRes
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature First Regular Session - 1999
IN THE SENATE
SENATE BILL NO. 1097
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THIRD PARTY LIABILITY IN WORKER'S COMPENSATION CASES; AMENDING
3 SECTION 72-223, IDAHO CODE, TO PROVIDE THAT A THIRD PARTY SHALL INCLUDE
4 CERTAIN EMPLOYERS HAVING UNDER THEM CONTRACTORS OR SUBCONTRACTORS AND TO
5 DELETE LANGUAGE EXCLUDING THE OWNER OR LESSEE OF PREMISES OR A BUSINESS
6 WHO BY REASON OF THERE BEING AN INDEPENDENT CONTRACTOR OR FOR ANY OTHER
7 REASON IS NOT THE DIRECT EMPLOYER OF THE WORKMEN BEING EMPLOYED.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 72-223, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 72-223. THIRD PARTY LIABILITY. (1) The right to compensation under this
12 law shall not be affected by the fact that the injury, occupational disease or
13 death is caused under circumstances creating in some person other than the
14 employer a legal liability to pay damages therefor, such person so liable
15 being referred to as the third party. Such third party shall not
16 include those employers described in section 72-216, Idaho Code, having under
17 them contractors or subcontractors who have in fact complied with the provi-
18 sions of section 72-301, Idaho Code ; nor include the owner or lessee of
19 premises, or other person who is virtually the proprietor or operator of the
20 business there carried on, but who, by reason of there being an independent
21 contractor or for any other reason, is not the direct employer of the workmen
22 there employed .
23 (2) Action may be instituted against such third party by the employee, or
24 in event compensation has been claimed and awarded, by the employee and
25 employer jointly, in the employee's name, or, if the employee refuses to par-
26 ticipate in such action, by the employer in the employee's name.
27 (3) If compensation has been claimed and awarded, the employer having
28 paid such compensation or having become liable therefor, shall be subrogated
29 to the rights of the employee, to recover against such third party to the
30 extent of the employer's compensation liability.
31 (4) On any recovery by the employee against a third party, the employer
32 shall pay or have deducted from his subrogated portion thereof, a proportion-
33 ate share of the costs and attorney's fees incurred by the employee in obtain-
34 ing such recovery.
35 (5) If death results from the injury or occupational disease and if the
36 employee leaves no dependents entitled to benefits under this law, the surety
37 shall have a right of action against the third party for recovery of income
38 benefits, reasonable expenses of medical and related services and burial
39 expense actually paid by the surety and for recovery of amounts paid into the
40 industrial special indemnity account pursuant to section 72-420, Idaho Code,
41 and such right of action shall be in addition to any cause of action of the
42 heirs or personal representatives of the deceased.
43 (6) All rights and restrictions herein granted to the employer have pre-
1 viously been intended to be, and are hereby expressly granted to the indus-
2 trial special indemnity account.
STATEMENT OF PURPOSE
The purpose of this amendment to Section 72-223, Idaho Code, is to correct some unintended
consequences that occurred as the result of the passage of Senate Bill No. 1437 in 1996. Under this
proposal, an employer who has contractors or subcontractors umder him who have worker's
compensation insurance could be subject to suit by an employee of the contractor or subcontractor if
negligence occurs. Also a person who could be subject to suit would be the owner or lessee of
premises, or other person who is the proprietor or owner of the business there carried on, but who is
not the direct employer of the workers employed there because of there being an independent
contractor or for any other reason.
CONTACT: Senator James Risch 332-1303
STATEMENT OF PURPOSE/FISCAL NOTE