In some states, third parties held liable for a work-related injury may seek
contribution from the injured worker's employer, but such contribution may be
capped by the amount of applicable workers compensation benefits. This cap is
named for an Illinois case—Kotecki v. Cyclops Welding Corp., 146 Ill. 2d 155, 166 Ill. Dec. 1, 585 N.E.2d 1023 (1991)—that first imposed it.
If the employer has indemnified the negligent third party, that indemnity agreement
may be viewed in certain jurisdictions as a waiver of the Kotecki cap.
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