Section 25-5-10
Liabilities of persons engaged in schemes, etc., to avoid liability to workers.
(a) A person who creates or carries into operation any fraudulent scheme, artifice, or device to execute work without being responsible to the worker for the benefits provided by this chapter shall be included in the term "employer" and shall be subject to all the liabilities of employers under this chapter.
(b) When compensation is claimed from or proceedings taken against a person under subsection (a) of this section, the compensation shall be calculated with reference to the wage the worker was receiving from the person by whom he or she was immediately employed at the time of the injury.
(c) The employer shall not be liable or required to pay compensation for injuries due to the acts or omissions of third persons not at the time in the service of the employer nor engaged in the work in which the injury occurs, except as provided in Section 25-5-11.
(Acts 1919, No. 245, p. 206; Code 1923, §7585; Code 1940, T. 26, §310; Acts 1992, No. 92-537, p. 1082, §7.)