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Kotecki Waiver

Definition

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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