How Do Workers’ Compensation Laws Operate?

Workers’ compensation laws are designed to allow employees who are injured at work to obtain a fixed amount of compensation, without having to sue their employer.  Workers’ compensation laws create an important “safety net” for employees who are injured at work or injured because of their job. 

Generally, workers’ compensation laws also provide some protection to employers and co-workers.  These laws may limit the amount of money that employees can obtain from their employers.  Injured employees may also be barred from suing their co-workers.  In this way, the workers’ compensation system is a “no-fault” system, where it doesn’t matter whose fault the injury was.  Negligence, whether of the employee, the employer, or a co-worker is not an issue.  The injured employee is simply compensated for his or her work-related injuries.

Employers generally aren’t involved in these lawsuits, but most states do have a method that allows an employer to recover their workers’ compensation payments from the compensation that an employee obtains from a third-party lawsuit.  In some states, the employer and the insurance company that provides the workers’ compensation insurance join in the lawsuit against the third party.  This joinder allows the employer and the insurance company to protect their right to be compensated for benefits that they have already paid to the injured employee.  In other states, the employer is given a lien against any compensation that the employee may obtain.  The employer and the insurance company must wait until the employee actually receives their compensation award, then the employee must pay back any workers’ compensation benefits already received.  An experienced workers’ compensation lawyer will be able to advise you on the laws of your state if you think that a third party may be responsible for your on-the-job injury.

DISCLAIMER: The information you obtain at our firm web site is not, nor is it intended to be, legal advice. It is recommended that you should consult an attorney for individual advice regarding your own situation.