How Third-Party Liability Affects Your Workers’ Compensation Claim

If you’ve been injured at work in Pennsylvania, your first source of help is typically the workers’ compensation system. This system is designed to provide injured employees with medical benefits and partial wage loss, regardless of who was at fault. However, sometimes your injury is caused by someone other than your employer or a co-worker. This is where third-party liability comes into play, and it can have a significant impact on your Pennsylvania workers’ compensation claim. Let’s break it down in plain English.

What Is a Third-Party Claim in Pennsylvania?

A third-party claim is a personal injury lawsuit filed against someone other than your employer or a co-worker whose negligence caused your work injury. In other words, it’s about holding a responsible party accountable when they cause your accident on the job.

Common examples of third-party claims include:

• A delivery driver hit by another vehicle while making deliveries.
• A construction worker injured by defective scaffolding made by an outside company.
• A retail worker slipping and falling in a poorly maintained parking lot owned by a third party.
• A nurse injured by faulty medical equipment.

In these situations, Pennsylvania workers’ compensation will still cover your medical bills and a portion of your lost wages. However, it won’t cover pain and suffering, emotional distress, or your full wage loss. That’s why Pennsylvania law allows you to file a separate third-party lawsuit in addition to your workers’ compensation claim.

How Third-Party Claims Work with Workers’ Compensation

Workers’ compensation and third-party claims in Pennsylvania often run side by side. You don’t have to choose one or the other. You can pursue both. Workers’ compensation ensures prompt medical care and partial wage replacement, while the third-party claim allows you to seek broader compensation. This can include pain and suffering, full lost wages, future medical costs not covered by workers’ comp, loss of consortium, and even punitive damages in certain cases.

Understanding Subrogation in Pennsylvania

If you win your third-party lawsuit or reach a settlement, your employer (or their workers’ compensation insurance carrier) may assert a right of subrogation. This means they can seek reimbursement for the benefits they’ve already paid you, like medical expenses and wage loss, out of your settlement or judgment.

While this may sound unfair, subrogation prevents “double recovery,” meaning you don’t get compensated twice for the same loss. The goal is to make sure the at-fault party, not your employer, bears the financial responsibility. Importantly, the employer’s right to reimbursement is limited to benefits they’ve already paid. Any compensation you receive for pain and suffering or other non-economic damages remains yours.

Do You Have a Valid Third-Party Claim?

Whether you have a valid third-party claim depends on the facts of your case. An experienced Pennsylvania workers’ compensation lawyer will investigate who caused the accident and determine whether they’re legally responsible. Common types of third-party claims include:

• Product liability: Injuries caused by defective tools, equipment, or products.
• Premises liability: Injuries sustained on another party’s property during your job.
• Negligence of another contractor or subcontractor: Common on construction sites.
• Motor vehicle accidents: If you drive as part of your job and another driver causes an accident.
• Breach of warranty: Products that fail to meet safety standards.

To succeed in a third-party claim, you must prove that the other party’s negligence or defective product caused your injury. This differs from workers’ compensation, where fault is not a factor.

Can You Sue Your Employer in Pennsylvania?

In most cases, you cannot sue your employer for negligence under Pennsylvania law. Workers’ compensation is designed to shield employers from lawsuits in exchange for providing guaranteed benefits. There are only a few exceptions, such as cases where the employer deliberately caused harm or failed to have workers’ compensation insurance.

Additionally, Pennsylvania law prevents third parties from bringing your employer into the case unless there’s a pre-existing indemnity agreement. This ensures lawsuits are focused on truly independent third parties.

Settlements, Waivers, and Disputes

Disputes can arise over how much of your third-party recovery should go back to the workers’ compensation insurer. These disputes are typically resolved by a Workers’ Compensation Judge, who considers attorney’s fees, litigation costs, and how much of your recovery relates to the same injury that workers’ compensation already covered.

Sometimes, an employer may choose to waive their right to subrogation, usually in complex cases where liability is unclear or when a settlement is preferred. This waiver must be clearly documented.

Why You Need an Attorney

If you’ve been injured at work and believe a third party’s negligence may have contributed to your injury, it’s critical to explore your options. Filing a third-party claim does not cancel out your workers’ compensation. It can enhance your recovery. However, you’ll need an experienced workers’ compensation lawyer in Pennsylvania to navigate the complexities of both systems.

Contact Stern and Cohen for a Free Consultation

At Stern & Cohen, we have the experience to help you manage your Pennsylvania workers’ compensation claim and any related third-party liability claim. Contact us today for a free consultation to discuss your case and get the benefits you deserve.