Guide

Workers Comp Liens And Subrogation

This guide focuses on how workers comp liens can affect third-party settlements.

Key takeaways

A lien or subrogation issue can change the net value of a third-party recovery and how settlements are coordinated.

Records to put together

  • Workers comp payment ledger
  • Third-party claim documents
  • Lien/reimbursement notice
  • Proposed settlement distribution

Questions to verify

  • Who claims reimbursement?
  • What benefits are included?
  • What state formula or approval rule applies?
  • How are attorney fees/costs allocated?

Important caution

Do not settle a third-party case without identifying workers’ compensation reimbursement rights.

When a lawyer consultation may help

  • A deadline, hearing, denial, or benefit change is close or disputed.
  • The medical evidence and the insurer/employer position conflict.
  • Permanent restrictions, settlement, third-party liability, employment status, or retaliation may affect the file.