The state Senate recently advanced legislation that would allow employers to be reimbursed for expenses paid to an employee for a workplace injury when a settlement or award of damages is obtained against a third party for the same injury.
Civil lawsuits can be filed against third parties when a workplace injury is the result of something such as faulty manufacturer equipment. The employer must pay for medical expenses under a traditional workers’ compensation claim and wage loss benefits.
If the lawsuit is successful, the employer can recover benefits paid. Senate Bill 319 would allow employers to also recover future medical expenses.
If the proceeds of a third-party settlement are depleted, the employer or insurer would resume paying the employee’s workers’ compensation wage loss and medical costs.
“While it is unfortunate that an employee would ever be injured on the job, employers should not be penalized by having to pay for future medical costs after the third party is found to be responsible for the accident,” state Sen. Camera Bartolotta (R-Greene County), who sponsored the bill, said. “The fair solution is for the injured party to be compensated by the responsible party – not by another party without any culpability.”
The bill moves to the House of Representatives for consideration.