Do I Have To Pay Back My Worker’s Comp Benefits If My Lawsuit Is Successful?
April 24, 2024 – Paul Hammack

If you receive a financial award from a third-party lawsuit, there’s a good chance you’ll owe a portion of it to the workers’ compensation insurance carrier. South Carolina laws protect the workers’ comp company’s rights by granting subrogation liens against the injured employee. That means you could be held responsible for paying a portion of compensation received from the third party to your employer’s workers’ comp carrier.
For those injured on the job, there are multiple options for receiving benefits and compensation. You could apply for workers’ compensation benefits, which get paid directly for your medical expenses, lost wages, and disability. You could file an insurance claim against the negligent individual or entity’s insurance carrier. Or, you could file a lawsuit against the person or entity responsible for your injury.
Receiving any amount of compensation from the third party lawsuit could result in a subrogation lien from your employer’s workers’ compensation carrier. They want reimbursement for the benefits they provided to you while you received treatment for your injury. Three specific circumstances could warrant subrogation. They include the following:
- The direct action or inaction of a third party, resulting in your injury. For example, getting injured in a work-related car accident caused by someone else.
- Defective equipment, machinery, or products sold or maintained by a third party. For example, a manufacturer selling your employer a malfunctioning crane that resulted in your injury.
- Suffering an injury from an accident that occurred on a third party’s property. For example, a construction worker sustaining an injury at a building owned by a corporation.
It may seem unfair that you’re required to pay back the money you won from your lawsuit, however it’s a typical result in workers’ compensation claims.
While your workers’ compensation claim and third-party lawsuit are ongoing, appropriate notifications must get sent regarding the status. If your third party lawsuit gets resolved before your workers’ compensation claim, you’re required to notify your employer’s insurance representative. If you fail to provide proper notice, you could potentially forfeit all rights to workers’ comp benefits.
The subrogation laws and statutes in workers’ compensation cases are complex. Without an experienced attorney by your side, you could miss a deadline, submit incorrect documentation, or fail to send required notices. Hiring Hammack Law Firm to represent you is your best option for ensuring you don’t miss out on any potential financial compensation or benefits.
We use all the resources at our disposal, so your rights stay protected throughout your case. We dedicate ourselves to providing excellent customer service to every person who walks through our doors. We’re a small firm with the ability to provide individualized attention to each of our clients. We’re available 24/7, so you can reach us when you need us.
If you sustained an injury on the job, call us at (864) 479-8949 today. We provide free consultations, so there’s no risk or obligation to speak with us. We’re happy to review the details of your case and determine the best course of action moving forward.
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To get started with our Greenville personal injury law firm, please simply contact us online or call (864) 326-3333(864) 326-3333 for a free consultation.