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Publication Date

7-1995

Document Type

Comment

Abstract

Workers' Compensation laws require an employer to pay workers' compensation benefits to any covered employee injured within the scope of employment regardless of fault. This obligation is unaffected by the fact that the injury requiring the employer to pay benefits is often caused by the negligence of a third party unrelated to the employment relationship. For this reason, most Workers' Compensation Acts provide the innocent employer or insurance carrier a right of subrogation against the recovery from any responsible third party tortfeasor to the extent of benefits paid to the injured employee. This type of reimbursement scheme prevents double recovery on the part of the employee, allows the injured worker to begin receiving compensation immediately after injury, and also provides "for some amount of cost containment by recompensing the employer, while still ensuring the employee receive [s] compensation for all injuries."

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