Tennessee § 50-6-113 - Liability of principal contractor, intermediate contractor or subcontractor.

§ 50-6-113. Liability of principal contractor, intermediate contractor or subcontractor.

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. 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. 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. 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. 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 administrator, with the bureau. It is the responsibility of the general contractor to file the written notice with the bureau. 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 bureau 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 bureau. This section shall not apply to a construction services provider, as defined by § 50-6-901. 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; 2010, ch. 1149, §§ 1, 5; 2013, ch. 282, § 1; 2015, ch. 341, § 15. Compiler's Notes. Acts 2010, ch. 1149, § 17 provided that the provisions of the act shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to the act unless such funds are specifically appropriated by the general appropriations act. Acts 2010, ch. 1149, § 19, provided in part that: The secretary of state is authorized to promulgate rules and regulations to effectuate the purposes of the act, which deleted subsections (f) and (g) and added subsection (h). All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the secretary of state shall permit: Construction services providers not currently licensed by the board for licensing contractors, but who qualify for a construction services provider registration, to apply for a workers' compensation exemption on or after January 1, 2011; and Construction services providers licensed by the board for licensing contractors to apply for a workers' compensation exemption on or after February 1, 2011. Amendments. The 2013 amendment, effective July 1, 2014, substituted “administrator” for “commissioner” in the first sentence of (e). The 2015 amendment substituted “bureau” for “division” throughout (e). Effective Dates. Acts 2013, ch. 282, § 10. July 1, 2014. Acts 2015, ch. 341, § 19. May 4, 2015.