The claims and subrogation laws often vary from state to state, but they have many similarities. If a third party was at fault for an employee’s injuries, the employee could file a civil lawsuit to recover the damages.
As we will see below, there are many issues to consider, including the workers’ compensation subrogation statute of limitations.
Exclusive Remedy Provisions
Suppose the employer is not at fault for the injuries. In that case, an employee sustains during a work-related incident, and the employee only has the right to receive compensation for the injuries and no more. The payment to be given will depend on the employer, which is termed an exclusive remedy.
If an employee receives compensation from the employer for work-related injuries, they give up any other rights of action resulting from the incident. However, the employee can take further action towards the third-party responsible for the injuries.
Exclusive remedy provisions refer to the employer’s responsibility towards the employee for any third-party actions resulting in a work-related accident.
If a third party is involved in a work-related accident, a thorough investigation into the incident is necessary. It will help establish if there is a subrogation opportunity due to a liable third party.
If the employee files a lawsuit against the third party, they can receive compensation from the third party’s insurance. The employer also has the potential to recoup some of the payments made to the employee.
The reimbursement rights of the employer need to be carefully considered by the employer and their insurer. However, there are exceptions, such as the funds used to pay for the employee’s medical bills.
An Employer is At Fault for The Injuries
Suppose the employer is somehow responsible for the injuries the employee suffers in a work-related accident. In that case, the employer should not seek reimbursement for compensation made to the employee by a third party.
Suppose the employer is found to be at fault for the employee’s injuries as a result of the work-related incident. In that case, they will be liable to contribute to the compensation from the third party to the employee.
Therefore, an employer can waive their rights to receive part of the compensation made by a third party to an employee for work-related injuries or illness. In such a case, they will not be responsible for costs such as attorney fees and other expenses included in the lawsuit.
If the employer waives their rights, they will not receive any of the reimbursement benefits they would receive from the employee compensation.
Contact an Experienced Attorney
In conclusion, when an employee is injured in a work-related incident involving a third party, they can receive compensation from the third party. The employer can also be reimbursed for part of the compensation. However, there are limitations, as you can see.
If you are injured or fall ill due to a work-related incident, you have the right to file a workers’ compensation claim with your employer with the help of Phoenix Workers’ Compensation Attorneys.