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 recover money from a third-party personal injury lawsuit.
That right is called a lien — a formal claim against your personal injury settlement under California Labor Code §§ 3852–3860.
Essentially, the comp insurer says:
“We paid benefits for your work injury, so if you get money from the person who caused it, we want our share back.”
This can include:
- Medical expenses paid by the insurer
- Temporary or permanent disability payments
- Vocational rehabilitation costs
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’ comp lien must be resolved before funds are distributed.
Here’s what typically happens:
- The lien is negotiated between your personal injury attorney and the comp carrier.
- The comp insurer is reimbursed for a portion of what it paid — not necessarily the full amount.
- Your attorney ensures the lien deduction is fair and proportional to your recovery.
The amount you ultimately receive depends on:
- Total recovery in the civil case
- Amount of the lien
- Degree of your own fault (if any)
- Negotiated reductions under Labor Code §3860
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.
