Subcontractors.

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§ 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.



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