When Can Injured Workers Sue For BIG Money?

Today, we’re diving into a topic that comes up almost daily in our conversations with clients: when an injured worker can sue for significant compensation. Let's explore how these cases work and what they could mean for you.

Understanding Third-Party Lawsuits

When you get hurt on the job, your first thought is probably workers' comp—but did you know there’s another way to potentially get even more compensation? That’s where third-party lawsuits come in.

Here’s the deal: you’re the first party, your employer is the second, and normally, you can’t sue them for a workplace injury—you have to go through workers' comp. But if someone else (a third party) was responsible for your accident, you might be able to sue them. This could be a contractor, a vendor, or even the manufacturer of faulty equipment that caused your injury.

Knowing the difference can open up more opportunities for compensation beyond workers' comp, so it’s worth looking into if a third party played a role in your accident.

Common Examples of Third-Party Lawsuits

Let’s look at some common scenarios where these cases come into play:

Construction Site Accidents: If you work in construction, you know the risks. Accidents involving ladders, scaffolds, or falling objects are unfortunately common. If you’re injured because of faulty equipment or unsafe conditions that a third party is responsible for, you could have a case.

Premises Liability Cases: Ever slipped on a wet floor or tripped over a poorly maintained staircase while on the job? If you’re hurt on someone else’s property due to their negligence—like a restaurant with broken stairs—you might be able to file a premises liability lawsuit.

Product Liability Cases: Imagine you’re using a tool at work that malfunctions and causes an injury. If the tool was defectively designed or manufactured, you could potentially sue the manufacturer. These cases can be tough to prove, but they’re definitely worth exploring.

Maintenance Issues: Sometimes, the equipment you use isn’t maintained properly. If a maintenance company hired by your employer fails to do their job, and it leads to your injury, this could also be grounds for a third-party lawsuit.

Benefits of Third-Party Lawsuits vs. Workers' Compensation

When you get hurt at work, workers' comp is usually the first thing you turn to. It helps cover medical bills and part of your lost wages—but here’s the downside: it only pays two-thirds of your average weekly wage and doesn’t cover everything.

That’s where third-party lawsuits can offer a bigger payout. Here’s why they might be worth considering:

• More Money in Your Pocket – Workers' comp caps your lost wage benefits at two-thirds of your pay, but a third-party lawsuit can cover all of your lost wages, which is a game-changer if you earn a higher salary.
• Pain and Suffering Compensation – Workers' comp won’t pay you for the physical and emotional toll of your injury, but a third-party lawsuit can. That alone can significantly increase your settlement.
• Punitive Damages – If the third party was seriously negligent, you could be awarded extra money as punishment for their actions. Workers' comp doesn’t offer this, but a lawsuit might.

Strategic Considerations

Handling a workplace injury claim can be confusing, but one of the smartest moves you can make is filing both your workers' comp claim and third-party lawsuit at the same time. Here’s why that’s a game-changer:

• Don't Miss Your Chance to Sue – Lawsuits have strict deadlines (statutes of limitations). If you wait too long, you could lose your right to sue a third party. Filing both claims right away keeps your options open.
• Better Coordination Between Lawyers – Having both cases running at the same time allows your workers' comp lawyer and third-party lawyer to work together. They can share information, make sure all aspects of your injury are covered, and build a stronger case.
• Maximize Your Compensation – Workers' comp covers medical bills and lost wages, but a third-party lawsuit can get you extra compensation for pain and suffering or even punitive damages. Filing both ensures you don’t leave money on the table.
• Avoid Unnecessary Delays – If you file one claim first and wait to start the other, you could slow things down and create gaps in your case. Filing both together keeps things moving and helps protect your financial stability.

Repayment of Workers' Compensation Benefits

One thing that surprises injured workers about third-party lawsuits is that you have to repay some of your workers' comp benefits if you win a settlement. The law doesn’t allow you to get paid twice for the same expenses, so if workers' comp covered your medical bills and lost wages, you can’t claim that money again.

When you settle, your lawyer must get approval from the workers' comp insurance company, which will take back what they paid on your claim—this is called a workers' comp lien. The good news? You don’t have to repay the full amount. Whatever percentage of your settlement goes to legal fees, that same percentage is deducted from what you owe workers' comp. So if 40% of your settlement covers legal costs, your repayment to the insurer drops by 40% too.

In some cases, you can negotiate an even lower repayment, depending on the details of your case and your lawyer’s skills.

Challenges in Proving Third-Party Negligence

Filing a third-party lawsuit can lead to a bigger payout, but it’s more complicated than a workers' comp claim because you must prove negligence. Unlike workers' comp, which is a no-fault system, a third-party claim requires clear evidence that someone else’s negligence directly caused your injury.

Strong evidence is key—things like accident reports, witness statements, photos, and maintenance records. You also need to prove the third party had a duty of care, failed to uphold it, and that failure caused your injury. For example, if a construction company didn’t provide proper safety gear and you got hurt because of it, that could be considered negligence.

In some states, comparative negligence can reduce your compensation if you’re found partially at fault. A good lawyer will work to minimize your share of the blame to maximize your payout.

Since third-party lawsuits take longer than workers' comp claims, you’ll need patience and persistence. But if negligence is clear, the extra effort can mean a much larger settlement than workers' comp alone.

Practical Tips for Injured Workers

Here are some practical tips to help you stay on track:

• Gather Strong Evidence – Right after your injury, document everything. Take photos of the accident scene, your injuries, and any equipment involved. Keep records of medical visits, treatments, and witness statements—this evidence is key to building a solid case.
• Hire the Right Lawyer – Not all attorneys are the same. Look for someone with experience in both workers' comp and third-party lawsuits. Ask for recommendations and find a legal team that works well together. A strong lawyer can make all the difference.
• Keep Detailed Records – Track your medical treatments, symptoms, and how your injury affects your daily life. A pain diary, doctor’s notes, and medical reports can provide valuable proof of what you’re going through.
• Act Fast – If you think a third party is responsible for your injury, talk to a lawyer ASAP. Lawsuits have deadlines (statutes of limitations), and waiting too long could hurt your case. The sooner you start, the better.
• Be Honest – Never exaggerate or misrepresent your injury. Insurance companies and opposing lawyers will closely examine your claims, and any dishonesty could damage your case.
• Follow Your Treatment Plan – Skipping doctor’s appointments or ignoring medical advice can be used against you, making it seem like your injury isn’t that serious. Stick to your treatment plan to protect both your health and your case.
• Stay Involved – Keep in touch with your lawyer, stay updated on your case, and don’t be afraid to ask questions. Being informed and engaged can help you get the best possible outcome.

Common Concerns and Misconceptions

When it comes to third-party lawsuits and workers' comp claims, a lot of people have concerns and misconceptions that can cause unnecessary stress. Let’s clear some of them up:

• Fear of Deportation – Many workers, especially immigrants, worry that filing a claim could lead to deportation. The truth is, your immigration status isn’t part of the equation—these claims are about your injury and right to compensation, not your legal status.
• Being Watched by Insurance Companies – It’s not uncommon for workers' comp insurance companies to use surveillance to check if your injury is legit. They might hire investigators to watch and record you. It can feel invasive, but as long as you’re honest about your condition, you have nothing to worry about.
• Will Filing Hurt Your Job Prospects? – While it’s illegal for employers to retaliate against you for filing a claim, some worry about being blacklisted in certain industries. At the end of the day, though, your health and financial stability should come first—you deserve the compensation you’re owed.
• Compensation Limits – A lot of people assume that workers' comp is the only option, but that’s not always the case. If a third party was responsible for your injury, you might be entitled to more, including money for pain and suffering or even punitive damages.
• Legal Process Seems Too Complicated – Third-party lawsuits are more complex than workers' comp claims, but a good lawyer takes care of the hard stuff so you can focus on healing.
• Worried About Legal Fees? – Many people hesitate to file a lawsuit because they think hiring a lawyer will be too expensive. But most personal injury attorneys work on contingency, meaning you don’t pay unless you win. No upfront costs, no risk.

Timing and Settlement Considerations

Settling too soon could leave money on the table, while waiting too long might delay much-needed financial relief. Here’s what you need to know:

• Wait for the Right Time – The best time to settle is when you’ve reached Maximum Medical Improvement (MMI)—meaning your condition has stabilized, and doctors have a clear picture of your long-term prognosis. Settling before MMI can shortchange you, since you won’t know the full impact of your injuries.
• Talk to Your Lawyer – Your attorney should be your go-to resource when deciding on settlement timing. They’ll help you balance your financial needs with the value of your claim, ensuring you don’t settle too early or wait too long.
• Don’t Miss Deadlines – Every claim has a statute of limitations, meaning if you wait too long to file, you could lose your right to compensation. Your lawyer will make sure you meet these deadlines so you don’t risk forfeiting your claim.
• Settling Smart – In some cases, it makes sense to settle your workers' comp claim first to lock in medical coverage and benefits, then focus on maximizing your third-party lawsuit payout. Your lawyer can guide you through the best approach.
• Watch Out for Lowball Offers – Insurance companies want to settle fast and for as little as possible. That first offer might not reflect the true value of your case, including future medical costs, lost wages, pain and suffering, and any permanent disabilities. Let your lawyer negotiate to get what you really deserve.
• Think About Your Finances – If money is tight and bills are piling up, settling sooner might seem tempting. Be upfront with your lawyer about your financial situation—they can help you prioritize your needs without settling for too little.
• Plan for Future Medical Costs – Once you settle, you usually can’t go back for more money, so your settlement needs to cover future treatments, rehab, and possible surgeries. Make sure it accounts for everything you’ll need down the road.

Contact Us For Help With Your Workers' Compensation Case

I’m here to help answer any questions you might have and guide you through the process. Feel free to give me, Rex Zachofsky, a call at 212-406-8989. Let's chat about your situation and see what we can do to get you the compensation you deserve.