“What Alabama Business Leaders Need to Know About Workers’ Compensation Reimbursement"

Swift Currie attorney David Lindsey authored an article for Business Alabama providing insight on how Alabama allows for employers to recover a portion of compensation paid to employees for injuries sustained in an on-the-job injury if the employee receives money from a third party such as a negligent driver or equipment manufacturer.

“In Alabama, employers may be able to recover or be reimbursed for those costs if the employee sues or settles a claim with a third party,” said Lindsey. “Understanding these rules can help protect businesses from unnecessary losses, especially for self-insured entities.”

Lindsey explained how reimbursement may vary depending on the type of compensation benefits as well as outlines when employers can and cannot be reimbursed. He also warned that Alabama does not require employees to notify their employer of a third-party claim or lawsuit, so companies can end up losing the chance for reimbursement.

Overall Lindsey highlighted four key things business owners should keep in mind when handling a workers compensation case, including tracking third-party claims, knowing what costs are reimbursable, considering joining the lawsuit if reimbursement rights are at risk and budgeting for legal costs as employer can expect to pay a share of attorneys’ fees if an injured worker recovers from the third-party claim.

To view the full article, you may click here.