A worker’s compensation third-party claim is a lawsuit filed by an employee who is injured while on the job against either:
- A non-employee who negligently injures the employee while he is on the job, or;
- An employer who chooses not to provide his employees with the protection of worker’s compensation insurance coverage.
Good to Know. Texas is the only state in the United States that does not mandate employers provide worker’s compensation coverage for their employees. It is optional on the part of the employer, however, it comes with a price. Those who do provide workers compensation cannot be sued for injuries sustained by their employees except in the case of gross negligence.
A Third-Party Claim is All in the Name
When an employee is on the job, he can file under his employer’s worker’s compensation coverage regardless of whether his employer was negligent. It is comprehensive coverage designed to protect injured workers and shield employers from civil liability when they spend the extra money to provide this comprehensive protection. If the negligence was due to someone else who is not employed by the same employer as the injured victim, then the injured party may also file a separate lawsuit in addition to the worker’s compensation claim against that third party who caused the injury. The employee and his work injury attorney are then obligated by law to reimburse the worker’s compensation carrier (minus a pro-rata share of collection costs and fees) for the money the worker’s compensation carrier paid out in benefits to the injured employee.
What Types of Cases Qualify as Worker’s Compensation Third-Party Claims?
A worker’s compensation third-party claim may arise from any type of personal injury negligence lawsuit. The negligent party or “defendant” may be a coworker or someone entirely unrelated to the employment relationship. Some examples of common worker’s compensation third-party claims include:
- Auto and truck accidents involving delivery drivers, transporters, and other common carriers acting on behalf of their employer;
- Construction site injuries are caused by the actions of a contractor where one or both of the parties involved is not covered by worker’s compensation.
- Injuries caused by collisions between heavy machinery and pedestrians or pedestrian accidents with other work vehicles such as industrial truck accidents and forklift accidents.
- Injuries on the job caused by defective products or equipment.
Good to Know: In 2022 there were 578 on-the-job fatalities. Of these, 153 were fatal accidents involving driver/sales workers and truck drivers—more than any other type of on-the-job injury. Source: Texas Department of Insurance.
Do I Have to Pay Back the Worker’s Compensation Carrier Out of My Third-Party Settlement in Texas?
Yes. Under Section 417.002 of the Texas Worker’s Compensation Statute, all proceeds of a third-party claim must be used to reimburse the worker’s compensation carrier for money they have paid out for medical expenses, lost wages, and other benefits to the injured employee. Additionally, any money over and above what the carrier paid out is credited against any obligation to make future payments to the employee for ongoing medical needs, lost wages, or benefits related to the same injury. However, if the employee was required to hire an attorney to pursue the recovery and the worker’s compensation carrier did not hire an attorney and actively pursue the recovery, then the worker’s compensation carrier may be made to reduce their lien by a pro-rata share of the expenses as well as a reasonable attorneys fee as agreed upon but not to exceed 1/3 or the amount recovered for the carrier.
Consult a Worker’s Comp. Third-Party Attorney
If you were injured on the job or lost a loved one to a work injury and the injury was caused by the negligence of a third party, talk to a Texas work injury lawyer to determine your rights today. You may be entitled to financial compensation. Simmons and Fletcher, P.C., has been helping injured workers in third-party claims and claims against employers who fail to provide worker’s compensation since 1979.
Author
