Workers Comp

Is a system of insurance that reimburses an employer for damages that must be paid to an employee for injury occurring in the course of employment. It is the goal of workers’ compensation to return the injured employee quickly and economically to the status of productive worker without unduly harming the employer’s business. A worker whose injury is covered by the workers’ compensation statute loses the common-law right to sue the employer for that injury, but injured workers may still sue third parties whose negligence contributed to the work injury. For example, a truck driver injured in a rear-end collision by an unemployed third party would be entitled to collect workers’ compensation and also to sue the third party for negligence. In such cases a plaintiff who recovers money from a third-party lawsuit must first repay the employer or insurer that paid workers’ compensation benefits. The plaintiff may keep any remaining money. Many jurisdictions permit the employer or its insurer to sue negligent third parties on the employee’s behalf to recover funds paid as workers’ compensation benefits.