California’s Labor Code (LAB) confirms the injured worker’s right to file Workers’ Comp benefits, but also to file a lawsuit against a third party who may have also contributed to an accident.
The code also allows employers or the California Department of Industrial Relations (DIR) to seek repayment for Workers’ Comp benefits if a worker receives a settlement.
- The claim of an employee, including, but not limited to, any peace officer or firefighter, for compensation does not affect their claim or right of action for all damages proximately resulting from the injury or death against any person other than the employer. Except as provided in subdivision (b), an employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation, or who pays or becomes obligated to pay an amount to the Department of Industrial Relations pursuant to Section 4706.5, may likewise make a claim or bring an action against the third person…
Filing a Lawsuit After Earning Workers’ Compensation
Workers’ Comp is a “no-fault” system. The benefits are available if the employer was at fault for causing an accident, or if the worker was careless and caused their own injury. In general, Workers’ Comp will be the only support the injured worker can seek.
However, with LAB 3852, injured employees are granted the right to file lawsuits against third parties (someone other than their employer). The lawsuit is allowed, even if the worker has already received Workers’ Comp support.
This would be a suit against someone who may have contributed to the danger that caused an injury. It might be a:
- Reckless truck driver
- The manufacturer of an unsafe tool
- The maker of a malfunctioning piece of equipment
- A contractor who was negligent
- Another company, perhaps the employer of someone who caused the accident
- A property owner, perhaps someone leasing an office to your employer
Paying Your Employer or Workers’ Comp Back
If you secure a lawsuit settlement or court judgment from a third party, you may not be able to keep all of it.
If you’ve already received support from Workers’ Comp to pay medical bills or to cover your lost income, your boss and Workers’ Comp may want to be repaid.
LAB 3852 also empowers the DIR and your employer to seek some compensation through a process called Subrogation. This is when Workers’ Comp Administrators seek money from your settlement to cover the benefits you’ve been provided.
Subrogation usually happens when you reach a settlement. The money may come from your settlement before you receive it. In some cases, the State of California or your employer will go after the at-fault party’s insurer directly, seeking compensation.
When you are down with an injury, you will want to make sure you receive as much as possible from Workers’ Comp and from any claim you file against a third party. You’ll also want to ensure Workers’ Comp doesn’t seek an unfair amount from any settlement you get.
A skilled California Workers’ Comp Lawyer can help you demand more from Workers’ Comp and from any third party that contributes to the injury you suffered.
Protections for Police and Fire Department Employees
The Division of Workers’ Compensation can ask for some money back, but that repayment is limited in some cases.
When peace officers or firefighters working for a city, county, or fire protection district earn Workers’ Comp support and a lawsuit settlement, they can limit what Workers’ Comp can take back.
When officers prove that their damages from an injury won’t be entirely covered if Workers’ Comp claims some of their settlement, the subrogation claim can be capped.
Under LAB 3852, Workers’ Comp couldn’t ask for more than a third of the third-party defendant’s applicable liability-insurance policy limits in certain situations.
Contact a California Workers’ Compensation Attorney to Talk Over Your Options
If you’ve been seriously hurt in a workplace accident, it’s a good idea to talk over your next steps with Maison Law. We offer a free, no-obligation case consultation to all injured employees.
If you don’t need our help to file a claim or hold a third party liable, we’ll be upfront about that. But if you do need our help to protect your claim, you won’t have to worry about how you’ll pay a lawyer. We don’t charge anything unless we win your case for you. If we win, our fee comes out of the benefits you receive.
