In New York if a worker is injured on the job, he/she has a right to workers compensation benefits. If, in addition to workers compensation benefits, a personal injury lawyer pursues a successful claim on behalf of the injured worker, the workers’ compensation carrier has a lien against the “third party recovery”. The repayment of this lien will come directly from the “third party recovery” and the injured worker will not have to pay anything back out of his/her own pocket. However, any money provided and paid for by workers compensation will ultimately reduce the amount of money that the injured party will receive.
- What is a “third-party recovery”?
In the context of a worksite injury in New York, a “third-party recovery” results when a claim or lawsuit is successfully pursued against another party that is not your employer. In other words, if a personal injury lawyer sues the owner or contractor or subcontractor who caused your injuries on a worksite, the money you receive is called a “third party recovery”. If there is a worker’s compensation lien, your lawyer will repay that lien from the “third party recovery”.