What Injured Workers Need to Know About Coordinating Both Claims
If you were hurt at work but another party caused your injury — such as a negligent driver, subcontractor, or equipment manufacturer — you may have both a workers’ compensation claim and a personal injury claim.
That’s good news for your total recovery — but it also means the workers’ comp insurer will likely place a lien on your personal injury case.
At WIN Trial Lawyers and Employees First Labor Law (EFLL), we specialize in these crossover cases, helping clients maximize their civil recovery while resolving liens efficiently so more money stays in your pocket.
What Is a Workers’ Comp Lien?
When your workers’ compensation insurer pays for your medical treatment or disability benefits, it gains a legal right to be reimbursed if you later secure money from a third-party personal injury lawsuit. This repayment right exists because California law prevents injured workers from receiving a “double recovery” for the same injury.
That repayment right is known as a workers’ compensation lien — a formal claim the comp carrier places against your personal injury settlement under California Labor Code §§ 3852–3860. These statutes outline exactly when the insurer can seek reimbursement and how the lien must be handled before any settlement funds are distributed.
In simple terms, the comp insurer is saying:
“We paid for your medical care and wage benefits after your work injury. If you recover money from the person or company that caused it, we are entitled to be paid back.”
This lien can cover a wide range of benefits paid on your behalf, including:
- Medical expenses such as chiropractic care, physical therapy, MRIs, hospital visits, pain management, and surgery
- Temporary disability payments (TTD), which replace lost wages while you’re unable to work
- Permanent disability payments (PD)
- Vocational rehabilitation or job retraining costs, when applicable
- Mileage reimbursement or other ancillary benefits
In many cases, the lien can grow quickly — sometimes reaching tens or hundreds of thousands of dollars, especially if the worker needed extensive treatment or lengthy time off.
However, the existence of a lien does not mean the insurer automatically gets the full amount back. California’s Labor Code strictly limits how much the carrier can recover, requires them to share in attorney’s fees and litigation costs, and permits substantial reductions when the total recovery is limited.
Understanding how liens work — and how to reduce them — is essential to maximizing the value of your third-party personal injury case.
Why Liens Exist
Workers’ compensation is designed to protect employees regardless of fault — but when a third party is responsible, California law prevents “double recovery.”
That means you can’t collect the same benefit twice — once from comp and again from your civil case.
However, the law also protects the worker by allowing deductions for attorney’s fees and costs, ensuring the insurer doesn’t take the full amount before you’re made whole.
How the Lien Affects Your Settlement
When your personal injury case settles, the workers’ compensation lien must be addressed before any settlement funds can be distributed. This lien represents the amount the workers’ comp insurance carrier paid for your medical treatment and wage benefits related to the injury. California law requires that it be resolved, but it does not have to be paid in full.
Here’s what typically happens in a third-party case:
- Your personal injury attorney negotiates directly with the workers’ comp carrier.
The carrier usually asserts a lien for medical bills, TTD benefits, and other payments made on your behalf. Your attorney reviews every line item, challenges improper charges, and negotiates reductions. - The comp insurer is reimbursed for only a portion of what it paid.
Under California’s workers’ compensation and third-party “credit/lien” system, carriers rarely receive 100% reimbursement. They must share in attorney’s fees, litigation costs, and proportional reductions. - Your attorney ensures the lien deduction is fair and legally compliant.
A skilled PI lawyer doesn’t just accept the lien as-is. They apply statutory formulas, case law, and leverage from the civil settlement to secure the lowest lawful lien repayment possible.
The net amount you ultimately receive from your settlement depends on several factors, including:
- The total recovery in your third-party civil case
- The size of the workers’ comp lien before and after negotiation
- Any comparative fault assigned to you in the accident
- Reductions available under California Labor Code §3860, which requires the lienholder to:
- Pay its share of attorney’s fees
- Pay its share of litigation costs
- Accept proportional reductions when recovery is limited
When handled properly, these lien reductions can significantly increase your final payout, sometimes by tens or hundreds of thousands of dollars.
How WIN × EFLL Maximize Net Recovery
Our integrated team manages both cases under one coordinated strategy — so the lien never blindsides you at the end.
We:
- Track all payments made by the comp carrier from day one
- Ensure proper documentation for every benefit paid
- Negotiate lien reductions aggressively based on equities and attorney fees
- Align settlement timing between both cases to avoid early lien enforcement
- Argue apportionment if the comp carrier overstates its lien
Our goal: reduce what the carrier gets back so you keep more of your settlement.
Example: Work-Related Car Accident
You’re a delivery driver hit by a distracted motorist while on the job.
- Workers’ comp pays $50,000 in medical care and $20,000 in temporary disability.
- You later settle your personal injury case for $300,000.
Under Labor Code §3860:
- The comp carrier’s lien is reduced by attorney fees (often 33%) and case costs.
- Your attorney negotiates further reduction for fairness, possibly bringing the reimbursement to $35,000 instead of $70,000.
- You keep the remainder — without double paying your medical bills.
That’s how coordination and strategic lien reduction make a real financial difference.
Timing and Communication Are Critical
The biggest mistake injured workers make is settling their workers’ comp claim too early or without notifying the PI attorney.
This can:
- Waive lien negotiation leverage
- Trigger credit rights against future benefits
- Create conflicts between settlements
That’s why EFLL and WIN handle both sides together — ensuring both cases complement, not compete, with each other.
Legal Basis: California Labor Code §§ 3850–3860
These statutes allow:
- The injured employee to sue the third party
- The employer or insurer to join or intervene in that lawsuit
- Allocation of recovery between the employee, attorney, and insurer
They also require that attorney fees and litigation costs be deducted before any lien repayment — protecting injured workers from unfair double deductions.
Our Dual-Claim Advantage
At EFLL × WIN, we’re one of the few California firms that coordinate workers’ comp, employment, and personal injury cases in-house.
This means:
- No communication gaps
- Unified case strategy
- Faster resolutions
- Higher net recovery after liens
We’ve successfully handled hundreds of cases where lien resolution made six-figure differences in client take-home amounts.
Serving Injured Workers Across California
We represent construction workers, delivery drivers, healthcare professionals, and employees across Los Angeles, Pasadena, Pomona, Long Beach, and the Inland Empire — ensuring every claim is maximized and every lien minimized.
Call WIN Trial Lawyers × Employees First Labor Law
At WIN Trial Lawyers, we know how devastating distracted driving accidents can be. Victims often face mounting medical bills, lost wages, and emotional trauma. Our team has successfully taken on insurance companies and distracted drivers, recovering millions for injured clients.
If you or a loved one has been injured in a speeding-related car accident, don’t leave your future in the hands of the insurance company. You need experienced trial lawyers who know how to prove liability and fight for maximum compensation.
If you or a loved one has been injured in a distracted driving accident, don’t face this alone. The sooner you act, the stronger your case will be.
