When you’re injured on the job, your first priority is getting the medical care and financial support you need to recover. For most workers in California, this means filing a workers’ compensation claim. But in certain cases, someone other than your employer may be responsible for the accident—and that opens the door to a potential third-party claim.
At Solov & Teitell, we understand how confusing this process can be. You may be wondering: Can I file both claims? Will one affect the other? What happens to my benefits if I pursue a third-party lawsuit? These are all valid questions, and we’re here to guide you through the answers.
Understanding the relationship between third-party claims and workers’ compensation is critical to ensuring you receive the maximum compensation available under California law. While workers’ comp provides fast access to benefits like medical treatment and wage replacement, it doesn’t cover everything—especially when it comes to pain and suffering.
If your injury was caused by someone outside of your workplace—such as a driver, subcontractor, or manufacturer—you may be entitled to file a third-party personal injury claim in addition to your workers’ comp benefits. Knowing your rights and working with an experienced legal team ensures nothing is left on the table.
Let’s take a closer look at how workers’ compensation works, when third-party claims apply, and how to protect your benefits.
What Is Workers’ Compensation?
Workers’ compensation is a system of insurance that provides benefits to employees who are injured or become ill as a direct result of their job. In California, employers are legally required to carry workers’ comp insurance, and it offers immediate support—without needing to prove fault.
Workers’ compensation can cover:
- Medical Expenses: Includes doctor visits, hospital stays, surgery, physical therapy, medications, and mental health treatment related to your work injury.
- Temporary Disability Benefits: If your injury temporarily prevents you from working, you’ll receive partial wage replacement—typically two-thirds of your average weekly earnings.
- Permanent Disability Benefits: If your injury results in long-term or permanent impairment, you may be eligible for ongoing benefits depending on the extent of your disability.
- Supplemental Job Displacement Benefits: Vouchers for education, retraining, or skill enhancement if you can’t return to your old job.
- Death Benefits: If a worker tragically passes away due to a job-related injury, their dependents may receive benefits to cover funeral costs and lost financial support.
Workers’ comp provides fast, no-fault support—but it has limitations. That’s where third-party claims come in.
Common Types of Workers’ Compensation Claims
At Solov & Teitell, we handle a wide range of workplace injury claims, including:
- Slip and fall accidents on the job
- Back, neck, and spine injuries from lifting or sudden movement
- Construction site accidents, including falls from heights or falling debris
- Injuries from defective equipment or machinery
- Motor vehicle accidents while driving for work
- Chemical exposure or toxic environments
- Repetitive stress injuries such as carpal tunnel syndrome
- Mental health conditions caused by workplace trauma or stress
Each of these situations may qualify you for workers’ compensation benefits—and in many cases, you may also be able to file a third-party claim.
What Is a Third-Party Claim?
A third-party claim is a personal injury lawsuit filed against someone other than your employer who played a role in causing your workplace injury. This could include:
- A negligent driver who caused a car accident while you were on the clock
- A manufacturer of defective tools or machinery
- A property owner who failed to maintain a safe environment
- A subcontractor or vendor working on the same job site
These claims differ from workers’ compensation because they allow you to seek damages for things workers’ comp doesn’t cover—most notably pain and suffering, emotional distress, and full wage loss.
Filing Both Claims: When It’s Allowed
Under California law, you can pursue both a workers’ compensation claim and a third-party personal injury lawsuit if a third party shares liability for your injury. These dual claims often arise in scenarios such as:
- Being hit by a car while making deliveries or traveling for work
- Suffering an injury due to unsafe conditions on a client’s or customer’s property
- Malfunctioning equipment or tools causing serious harm
- Accidents involving multiple companies or contractors at a job site
Importantly, filing a third-party claim does not disqualify you from receiving workers’ comp benefits. In fact, workers’ compensation can provide you with immediate help while the third-party case is being resolved.
How a Third-Party Claim Affects Your Workers’ Comp Benefits
Filing a third-party claim while receiving workers’ compensation can provide an opportunity to recover more money—but it’s important to understand how the two systems interact. Many injured workers worry they’ll “lose” their workers’ compensation benefits or be penalized for pursuing additional compensation. The truth is: you can absolutely file both, but certain rules apply when it comes to overlapping compensation.
Here’s how it works:
You Still Receive Workers’ Compensation Benefits
First and foremost, if you’ve been injured on the job, workers’ compensation benefits will usually be your first line of financial support. You do not have to wait for a third-party claim to be resolved before receiving medical treatment, wage replacement, or temporary disability benefits. These are designed to help you recover and survive financially without delay—regardless of who was at fault.
Workers’ compensation covers:
- Immediate medical care and follow-up treatment
- Partial wage replacement while you recover
- Disability benefits for long-term or permanent injuries
- Job retraining or supplemental job displacement benefits
These benefits continue as normal while your third-party claim is being pursued.
You Can Recover More Through a Third-Party Claim
Workers’ compensation is limited in what it can provide. For example, it does not cover:
- Pain and suffering
- Emotional distress
- Full wage loss (it only pays a portion of your lost income)
- Loss of enjoyment of life
- Future earnings if your injury permanently impacts your career
A third-party claim, which is essentially a personal injury lawsuit against someone other than your employer, can cover all of the above. If successful, this type of claim can result in significantly higher compensation—often in the form of a settlement or jury award.
The Role of Subrogation: What You Need to Know
Here’s where it gets more technical: If your third-party claim results in financial recovery, your employer’s workers’ compensation insurance provider may seek reimbursement for the benefits it already paid. This process is called subrogation.
Subrogation means the insurance company has the right to be paid back for:
- Medical bills they covered
- Disability payments made to you
- Any other benefits they issued
Think of it like this: If someone else was responsible for your injury, and you recover money from them, the insurance company may say, “We helped you out when you were hurt, but now that you’ve been compensated by the at-fault party, we’d like to be reimbursed.”
While this might sound unfair, it’s a legal mechanism to prevent “double recovery” for the same expenses. However, here’s the good news:
You still keep the compensation for non-economic damages like pain and suffering, emotional trauma, and loss of enjoyment of life—because workers’ comp doesn’t cover those in the first place.
You may also recover the full value of your lost wages that weren’t fully covered by workers’ compensation.
You keep control of your claim—an experienced attorney like those at Solov & Teitell can negotiate with the insurance carrier to reduce the amount of subrogation, so you keep more of your recovery.
Coordinating Both Claims Is Key
Managing a workers’ compensation claim alongside a third-party personal injury case requires strategic coordination. Without experienced legal guidance, it’s easy to make mistakes that could cost you thousands. For example:
- Failing to notify the workers’ compensation carrier about a third-party settlement may trigger legal complications
- Accepting a third-party settlement without considering the insurer’s subrogation rights could reduce your net recovery
- Not documenting pain and suffering damages correctly may limit your ability to pursue them
FAQs: Third-Party Claims and Workers’ Compensation
Can I still receive workers’ comp benefits if I file a third-party lawsuit?
Yes. Workers’ comp benefits continue while your third-party case is pending.
Will I have to repay workers’ compensation benefits if I win my third-party claim?
Your employer’s insurance may seek reimbursement for some benefits through subrogation—but this doesn’t apply to damages like pain and suffering.
Do I need separate lawyers for both cases?
No. At Solov & Teitell, we handle both your workers’ compensation and third-party cases, ensuring consistency and maximizing your total recovery.
How do I know if I have a third-party claim?
If someone other than your employer caused or contributed to your injury, you may have a third-party claim. We’ll evaluate your case for free.
Does workers’ comp cover pain and suffering?
No. That’s one of the biggest differences between workers’ comp and third-party claims. Only personal injury lawsuits can pursue compensation for pain and suffering.
Closing
If you’ve been injured on the job, don’t assume workers’ compensation is your only option. In many cases, a third party may share responsibility for your injury—and you could be entitled to far more compensation than you realize.
At Solov & Teitell, we specialize in helping California workers get the benefits they deserve. From filing your initial workers’ comp claim to investigating potential third-party liability, we’re with you every step of the way.
We don’t believe in one-size-fits-all solutions. We take the time to listen, investigate thoroughly, and develop a strategy that maximizes your compensation while protecting your long-term well-being.
The sooner you reach out, the better your chances of securing the full financial recovery you’re entitled to under California law.
Call Solov & Teitell today for a free consultation—and let us fight for every dollar you deserve.