Do I still have to pay back my workers' compensation benefits if I settle a lawsuit for a construction site injury?

A:

Yes.

A portion of the benefits must usually be repaid. Most state laws give the workers’ compensation insurance carrier the right to be repaid from any settlement in a lawsuit for a construction site injury. This right of the workers’ compensation insurance carrier to be repaid a portion of its benefits is called “subrogation”.

On the other hand, the workers’ compensation insurance carrier must usually pay its share of attorneys’ fees and expenses in the lawsuit.

The workers’ compensation lien can often be negotiated and reduced, so that the entire amount of the workers’ compensation benefit does not need to be repaid.

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