Workers’ compensation is the exclusive remedy for employees injured on-the-job. That rule is applicable only insofar as employers and workers’ compensation insurance companies are concerned. When a work injury is due in full or in part to the negligent actions of a third party, the worker may pursue a personal injury lawsuit against that party – in addition to collecting workers’ compensation benefits.
However, it is crucial for employees to understand that if they do pursue a third party action, their employer and/or insurance company may be entitled to something called “subrogration.” In this scenario, it would mean the entity that paid workers’ compensation benefits would have a right to reimbursement from the third-party litigation damage award. That hold that an employer has on the third-party damage award is called a “subrogration lien.” The statute under which this is permitted is O.C.G.A. 34-9-11.1.
This does not mean a worker will get nothing by pursuing third-party action. The reality is, personal injury lawsuits tend to glean higher damage awards than workers’ compensation, and they also reimburse for losses such as pain and suffering – which workers’ compensation does not. It is imperative that injured workers in this situation employ an experienced attorney because failure to do so could mean a loss of critical benefits. Continue reading →