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$Workplace Injuries FAQ

How Does the Workers’ Comp Lien Work?

It is a fair concern: if workers' comp already paid your medical bills and some wages, and you then recover from a third party, does comp get its money back? Often, in part — through what is called a comp lien. The comp insurer may seek reimbursement out of a third-party recovery for what it paid you, so the same losses are not paid twice.

But a lien is not a simple dollar-for-dollar clawback of your whole settlement. It applies to a portion, it is negotiated, and it is frequently reduced — for example, to account for the attorney's work that produced the recovery and other factors. How the lien is handled has a real effect on what you actually keep.

That is exactly why coordinating the third-party claim with the comp claim matters, and why it helps to have someone managing both. Negotiating and minimizing the comp lien, while maximizing the third-party recovery, is part of protecting your net result — and it is work we handle so the two claims work together rather than against each other.

This is general information about Workplace Injuries $workplace injuries claims, not legal advice. Every situation is different.

The law depends on your state

The steps above apply wherever you were hurt. Filing deadlines, fault rules, and limits on damages differ by state — pick yours for what applies to workplace injuries.

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