Quick answer
Workers’ compensation usually bars a lawsuit against the employer, but not against others. When a third party, such as another driver, a property owner or a product manufacturer, caused a work injury, the worker may be able to collect workers’ compensation and also bring a negligence claim against that party.[1][2] The compensation insurer generally has a lien on the third-party recovery for benefits it paid.[2]
Collecting both
The federal Longshore Act illustrates the principle: when someone other than the employer is liable, the person entitled to compensation “need not elect whether to receive such compensation or to recover damages against such third person.”[1] New York’s highest court has explained that under that state’s Workers’ Compensation Law § 29(1), “a claimant may pursue a legal action against a third party for damages arising out of the accident underlying the workers’ compensation claim.”[2]
Common third parties
Other drivers
A worker hurt in a crash while driving for work.
Other contractors
Another company’s employees on a shared job site.
Property owners
A hazard on property the employer doesn’t control.
Manufacturers
Defective ladders, scaffolds, helmets or machinery.
Vessels
Under the Longshore Act, a vessel whose negligence caused the injury.[1]
Liens and reimbursement
Under New York law, the employer or carrier “has a lien on any recovery to the extent of compensation and medical expenses already disbursed,” and may also offset future benefits against the recovery.[2] In 2024 the Nevada Supreme Court held that a compensation insurer’s lien under that state’s statute applies to the total amount of a third-party settlement, regardless of whether the money is designated as economic or noneconomic damages.[3] Lien rules differ significantly by state.
Settlement consent
Some laws require the compensation carrier’s consent before a third-party settlement. Under New York law, a claimant who settles a third-party action for less than the compensation benefits must first obtain the carrier’s written consent or a court order.[2] The Longshore Act similarly requires written approval from the employer and carrier before settling for less than the compensation due.[1]
Deadlines
Third-party claims are subject to the ordinary statute of limitations for injury claims.[4] Under the Longshore Act, accepting compensation under an award assigns the worker’s third-party rights to the employer unless the worker files suit within six months.[1]
Frequently asked questions
Can I get workers’ comp and still sue someone else?
Often yes, if a party other than the employer caused the injury. The Longshore Act and New York law both allow it.[1][2]
Will workers’ comp be repaid from a settlement?
Generally yes. New York, for example, gives the carrier a lien for compensation and medical expenses paid.[2]
This page provides general information about the law from the sources listed below. It is not legal advice, and reading it does not create an attorney-client relationship. Laws vary by state and change over time. See our legal disclaimer.
Sources
- U.S. Department of Labor, OWCP. Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 905, 933. https://www.dol.gov/agencies/owcp/dlhwc/lhwca
- Matter of Brisson v. County of Onondaga, New York Court of Appeals (2006). Legal Information Institute. https://www.law.cornell.edu/nyctap/I06_0015.htm
- NCCI. “Court Case Update, Colorado and Nevada – October 2024.” https://www.ncci.com/Articles/Pages/Insights_CourtCase_Update_CO_NV_October2024.aspx
- Legal Information Institute, Wex. “Statute of limitations.” https://www.law.cornell.edu/wex/statute_of_limitations
Sources last checked: October 11, 2026
