Senate committee approves workers’ compensation liability bill

Senate Bill 147 was sent to the Senate Finance Committee. Sen. Hollis French, D-Anchorage, is sponsor of the bill.

The legislation corrects a deficiency in a 2004 change made to the state workers’ compensation law that extended potential liability for unpaid workers’ compensation claims by a subcontractor or a general contractor to the owner of the construction project.

Along with the potential liability went immunity from lawsuits. Under previous law general contractors were responsible if a subcontractor employee was injured but the subcontractor refused to pay the claim, but the general contractor was also made immune from subsequent litigation.

French said this creates an inequity because accidents on the worksite can sometimes happen because of the owner’s negligence but under the 2004 law change the owner is immune from lawsuits while leaving the general contractor liable for the workers’ compensation claim.