Injured employee; liability of third persons

(a) Whenever any police officer, firefighter, or any other officer or employee who is temporarily exposed to unusually hazardous conditions, or who is a member of a class, recognized by the action of pricing, to be a class exposed to unusually hazardous conditions, receives personal injury arising out of and in the performance of duty and without negligence on the employee's part, the employee shall be placed on accidental injury leave unless suspended or discharged for cause. The employee shall be continued on the department's payroll, as though the employee did not sustain an industrial injury, as follows: (1) During the first four months of the disability, at the employee's full regular monthly salary; and (2) Thereafter, during the period of total disability from work at sixty per cent of the employee's regular monthly salary. The employee shall be entitled to all rights and remedies allowed under chapter 386; provided that any salary paid under this section shall be applied on account of any compensation allowed under chapter 386 or any benefits awarded under part III of chapter 88 to the employee. (b) When the employer pays benefits to or incurs medical expenses on behalf of any of its employees under this section for any injury sustained under circumstances creating in some person or entity other than the employer a legal liability to pay damages in respect thereto, the employer or the employee may proceed against such third persons and recover all payments made, paid, or due under this section. The employer or employee shall have all of the rights and remedies contained in or provided for under section 386-8.