Can I sue my employer for a workplace injury?

In most US states, workers' compensation laws give employees the right to benefits after a workplace injury without needing to prove fault, in exchange for limiting the right to sue the employer directly. There are some exceptions. An attorney can advise on whether any exception applies in your state.

Can I get workers' compensation and also sue a third party?

Yes, in most states these two routes are not mutually exclusive. You can receive workers' compensation benefits and also pursue a claim against a third party whose negligence contributed to your injury. However, if you recover from the third party, the workers' compensation insurer may have subrogation rights. An attorney can explain how this works.

Is it better to take workers' compensation or bring a lawsuit?

This depends entirely on the specific facts of your case and your state's law. Workers' compensation provides faster, no-fault access to medical benefits and partial wage replacement. A third-party lawsuit can potentially allow recovery of a broader range of losses but requires proving that another party was responsible. An attorney can advise on which routes are available.

What if workers' compensation has been denied?

A denial of workers' compensation can be appealed. It does not affect the existence of any third-party claims that may be available. Speaking with an attorney about both issues is advisable.

Workers' Compensation vs Lawsuit | Industrial Accident Claim Options

Workers' Compensation vs Lawsuit: What Are Your Options?

Quick answer

Workers' compensation provides benefits without proving fault but limits what you can recover and generally prevents suing your employer. A third-party lawsuit may allow full damages — including pain and suffering — from contractors, manufacturers, or other negligent parties. The two routes can sometimes run at the same time.

Workers' compensation covers medical costs and typically two-thirds of lost wages; the remaining financial impact is estimated at over $170 billion annually across the US economy, according to OSHA. OSHA — Costs of Work Injuries

Workers\' compensation and a personal injury lawsuit are different legal routes after a workplace accident. Workers\' comp provides no-fault benefits from your employer\'s insurer but limits what you can recover. A lawsuit — typically against a third party — can potentially cover a broader range of losses but requires proving another party\'s responsibility.

Reviewed by Gerald Lee Cross Jr, Managing Partner · Cross & York LLP

What Is Workers' Compensation?

Workers' compensation is a state-run insurance system that provides medical benefits and partial wage replacement to workers injured on the job. In most cases, you do not need to prove that your employer was negligent. Benefits are provided on a no-fault basis.

The trade-off is that workers' compensation limits what you can recover. It typically does not cover pain and suffering, and wage replacement is usually a fraction of your actual earnings. In most states, receiving workers' compensation also means giving up the right to sue your employer directly.

What Is a Third-Party Lawsuit?

A third-party lawsuit is a legal claim against someone other than your employer — for example, a contractor on the site, the manufacturer of a defective machine, a property owner, or a chemical supplier. These claims are based on proving that the third party was negligent and that their negligence caused your injury.

Third-party claims can potentially allow recovery for pain and suffering, full lost earnings, and other losses that workers' compensation does not cover. However, they require proof of fault and can take longer to resolve.

When Can Both Routes Be Used?

In most US states, you can pursue both workers' compensation and a third-party claim at the same time. However, there are rules about how the two interact — particularly subrogation, which allows the workers' compensation insurer to recover some of its payments from any third-party recovery. An attorney can explain how these rules apply in your state.

What Workers' Compensation Does Not Cover

Pain and suffering damages
Full lost earnings (workers' compensation typically pays a percentage)
Punitive damages in egregious cases
Disfigurement and other heads of loss not in the workers' comp schedule
Claims for the full impact of catastrophic or permanent injuries

What a Third-Party Claim Can Add

A successful third-party claim can recover losses not covered by workers' compensation, subject to the applicable state law. For serious injuries — amputations, spinal injuries, burns, catastrophic injuries — the difference in what can be recovered through a third-party claim versus workers' compensation alone can be significant.

How an Attorney Can Help

The interaction between workers' compensation and third-party claims is complex and varies significantly by state. An attorney can assess whether a third-party claim exists, advise on how the two routes interact, and manage both processes. See also: what to do after an industrial accident and industrial accident lawyers overview.

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Legal Notice: The information on this page is for general information only and is not legal advice. Every case is different. Prior results do not guarantee a similar outcome. Laws vary by state and individual circumstances affect all legal claims. Contacting this firm does not create an attorney-client relationship. This content may be considered attorney advertising.