Third-Party Workplace Injury Lawsuits Explained

Workers' compensation is a trade-off: you receive benefits regardless of fault, but in exchange, you generally can't sue your employer for negligence. This is called the "exclusive remedy" rule.

However, this rule only applies to your direct employer. Any other party whose negligence contributed to your injury can be sued in a traditional personal injury lawsuit, where you can recover much greater compensation.

Depending on your accident, potential third-party defendants include:

• Product Manufacturers: Defective equipment, machinery, tools, or safety devices
• Property Owners: If you worked at a location your employer doesn't own
• General Contractors: On multi-employer worksites like construction projects
• Subcontractors: Other companies whose work created hazards
• Motor Vehicle Drivers: If you were hit by a non-employee while working
• Maintenance Companies: Negligent repairs or upkeep of equipment or premises
• Design Professionals: Architects or engineers whose designs were defective

Third-party lawsuits allow you to recover damages that workers' comp doesn't provide:

Economic Damages:

• Full lost wages (not just 2/3 like workers' comp)
• Future lost earning capacity
• All medical expenses past and future
• Out-of-pocket expenses

Non-Economic Damages:

• Pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Disfigurement and scarring
• Loss of consortium for spouses

Punitive Damages: In cases of gross negligence or intentional misconduct.

You can pursue both workers' comp and a third-party lawsuit simultaneously. However, there's a catch: your employer or their workers' comp insurer has a "subrogation" right to be reimbursed from your third-party recovery for benefits they paid.

How this works:

1. You file for workers' comp and receive benefits
2. You sue the third party for additional damages
3. If you win or settle, your employer/insurer gets reimbursed for their payments
4. You keep the remaining amount, including all non-economic damages

An attorney can negotiate to reduce the subrogation amount, maximizing what you keep.

Unlike workers' comp, third-party lawsuits require proving the defendant was negligent. You must show:

• Duty: The defendant owed you a duty of care
• Breach: They violated that duty through action or inaction
• Causation: Their breach caused your injury
• Damages: You suffered measurable harm

Evidence gathering is crucial. An attorney will investigate OSHA reports, product specifications, maintenance records, and witness statements to build your case.