Workers’ compensation is designed to be a safety net, offering quick benefits to employees injured on the job without needing to prove fault. But what if someone outside your workplace is to blame for your injury? When exploring your options after a workplace accident, you might find that you’re able to take legal action beyond workers’ comp, and that’s where things get interesting.
Understanding the Boundaries of Workers’ Compensation
Before diving into third-party lawsuits, it’s important to understand what workers’ compensation does and doesn’t cover.
Workers’ comp laws vary slightly from state to state, but in general, if you’re hurt at work, even if you were partially at fault, you’re entitled to benefits. These typically include medical treatment, wage replacement, and disability compensation. However, these benefits come at a cost: you generally can’t sue your employer or coworkers for negligence.
This is where third-party claims come in.
When Can You Sue Someone Outside of Your Workplace
There are scenarios where someone other than your employer may have contributed to your injury. In these cases, you may have the right to sue that “third party” for damages in addition to collecting workers’ compensation.
Here are some real-world situations where this can happen:
Injured in a Car Accident While on the Job
If you drive for work and another driver causes an accident, you may be able to file a personal injury claim against them, even while collecting workers’ comp benefits. This can help recover costs workers’ comp won’t cover, such as pain and suffering or vehicle damage.
Defective Products or Machinery
Were you injured by a tool, machine, or safety equipment that malfunctioned or was improperly designed? The manufacturer, distributor, or maintenance company may be held liable through a product liability lawsuit.
A fun fact: The first successful product liability lawsuit involving a soda bottle exploded, literally! In the 1944 case Escola v. Coca-Cola Bottling Co., a waitress was injured when a Coke bottle exploded in her hand, setting a precedent for manufacturer responsibility.
Hazardous Property Conditions
Say you’re working at a client’s home or a construction site managed by another contractor and are injured due to poor maintenance or safety violations. You may be able to sue the property owner or site manager for negligence.
Why Third-Party Claims Matter
Workers’ comp is helpful, but it’s limited. You typically can’t recover:
- Full lost wages
- Pain and suffering
- Punitive damages (for gross negligence or misconduct)
A third-party claim fills these gaps. By suing the responsible party, you may be able to recover additional compensation and get closer to being made whole after a serious injury.
ALSO READ: Back to Work After an Injury – How to Protect Your Job, Health, and Peace of Mind
The Role of Workers’ Compensation Lawyers
Navigating both workers’ comp and third-party claims can be tricky. That’s why many injured workers turn to experienced workers’ compensation attorneys. They understand the systems, the filing deadlines, and how to recover lost wages while protecting your rights on both fronts.
A good lawyer will:
- Help you avoid common mistakes that can weaken your case
- Coordinate your workers’ comp claim with your third-party lawsuit
- Negotiate fair settlements or represent you in court if needed
And here’s a fun historical tidbit: Workers’ compensation laws have existed in the U.S. since 1911, with Wisconsin passing the first successful law. Today, every state has its own version, but the basics remain the same – workers give up the right to sue their employer in exchange for guaranteed benefits.
Double Dipping – Not So Fast.
If you’re thinking, “Great, I’ll get paid twice!” – slow down. While you can pursue both types of claims, you don’t get to pocket double compensation.
This is due to subrogation, which allows your workers’ comp insurer to be reimbursed from your third-party settlement. So, if your employer’s insurer pays $30,000 in benefits and you win $100,000 from a third-party lawsuit, the insurer may be entitled to recoup part of what they paid.
Still, third-party claims can substantially increase your overall recovery, especially for serious or long-term injuries.
Don’t Assume You’re Limited to Workers’ Comp
If you’ve been injured on the job, don’t just assume workers’ comp is your only path. A third-party claim could provide crucial compensation that helps you recover more fully, financially and emotionally.
Consulting a workers’ compensation lawyer early on can make all the difference. They’ll help you understand all your options and create a plan that protects your rights now and down the road.
Sometimes, looking outside the workplace is the smartest move you can make.
