Uninsured Employers' Fund v. City of Salyersville

# Uninsured Employers' Fund v. City of Salyersville ## What Happened The Uninsured Employers' Fund sued the City of Salyersville, claiming the city should be held responsible for workers' compensation claims under an "up-the-ladder" contractor liability rule. This rule typically makes companies responsible for injuries to workers hired through other contractors on their projects. ## What the Court Decided Kentucky's highest court ruled against the fund. The court determined that municipal corporations like cities are not considered "persons" under the workers' compensation law, so they cannot be held liable as contractors in this way. The city won the case and owed no damages. ## Why This Matters for Workers This ruling creates a significant limitation for injured workers. When workers are hired through subcontractors on city projects, they have fewer avenues to recover compensation if the original employer lacks insurance. Workers may need to rely solely on their direct employer's coverage rather than holding the city financially responsible for workplace injuries.