Many injured construction workers are surprised to learn that workers’ comp carriers may claim part of their lawsuit recovery. Under New York law, the workers’ compensation carrier often has a right to reimbursement when you recover money from a third party responsible for your accident.
After months of treatment, missed paychecks, and dealing with the workers’ comp system, most people want to know one thing: how much money do they actually get to keep? The answer depends on several factors, including attorney fees, litigation costs, future benefits, and whether the carrier agrees to reduce its lien. A New York construction accident lawyer can help you understand the numbers, avoid costly mistakes, and protect as much of your recovery as possible.
Chopra & Nocerino helps injured construction workers handle workers’ comp liens and third-party lawsuits with straight answers, real strategy, and no sugarcoating about what is at stake.
- In most cases, New York workers’ comp carriers can seek reimbursement from a third-party construction accident settlement for benefits already paid.
- Attorney fees and litigation costs usually reduce the workers’ comp lien because the carrier shares part of the cost of obtaining the recovery.
- Chopra & Nocerino helps injured construction workers understand their rights and fight to protect as much of their recovery as possible.
How the Workers' Comp Lien Attaches to Your Construction Settlement
When a construction worker receives workers’ compensation benefits and later recovers money from a third-party lawsuit, the insurance carrier usually has a right to reimbursement. This process is called subrogation. Under Section 29 of the New York Workers’ Compensation Law, the carrier may assert a lien against money recovered from responsible third parties—such as general contractors, property owners, subcontractors, or equipment manufacturers.
This lien attaches to both indemnity (lost wage) benefits and medical benefits already paid by the carrier through the date of the third-party recovery. Because these liens can significantly affect how settlement funds are distributed, New York courts have described Section 29 as a powerful statutory reimbursement right intended to prevent double recovery for the same losses. In fact, due to the strong protections the law affords a carrier’s reimbursement interests, courts frequently refer to it as a “super lien.”
How Your Construction Lawsuit Attorney Fees and Costs Reduce the Lien
Under New York Workers’ Compensation Law § 29, the workers’ compensation carrier generally must reduce its lien to account for its share of the legal expenses incurred in obtaining the recovery. Those expenses may include attorney fees, court filing fees, deposition costs, expert witness fees, medical record expenses, and other litigation costs connected to the construction lawsuit.
This often reduces the amount the carrier ultimately recovers from the settlement. For example, if attorney fees and litigation costs account for roughly one-third of the total recovery, the carrier’s lien may be reduced by a similar proportion. However, there is no automatic one-third rule under the statute. The final reduction depends on the specific facts of the case, the amount of the lien, future exposure, and negotiations between the parties.
When You Need the Carrier's Consent to Settle Your Construction Lawsuit
New York law places important restrictions on settling third-party construction accident lawsuits while workers’ compensation benefits remain open. Under New York Workers’ Compensation Law § 29(5), if an injured worker settles a third-party action for less than the amount of workers’ compensation benefits provided or estimated under the claim, the worker generally must obtain written consent from the workers’ compensation carrier or a court-approved compromise order.
Failing to obtain the required consent can create serious consequences. In many situations, a worker who settles without carrier approval may lose the right to continue receiving future workers’ compensation benefits related to the accident.
There is an important exception when the third-party recovery exceeds the total workers’ compensation benefits paid and expected in the future. In those situations, carrier consent is generally not required. Because these calculations can become complicated quickly, many injured workers benefit from reviewing the numbers with an attorney before finalizing a settlement.
What Happens If Your Construction Settlement Is Larger Than the Lien
If your third-party construction settlement exceeds the workers’ comp lien and litigation expenses, you usually keep the remaining balance. This surplus belongs to the injured worker after the carrier’s reimbursement rights are satisfied.
That does not always mean workers’ comp payments continue immediately, though. In many cases, the carrier may receive a “holiday,” sometimes called an offset, against future benefits. This means the insurance company can temporarily suspend future workers’ compensation payments until the value of your net recovery is exhausted.
These offset calculations can become complicated because they often involve projections of future medical treatment and wage benefits, as well as present-value calculations. A workers’ compensation lawyer can carefully review those numbers and ensure the carrier is not taking a larger offset than the law allows.
Talk to a New York Construction Accident Attorney About Your Workers' Comp Lien
Workers’ comp liens and third-party construction lawsuits can get complicated fast, especially when large settlements, future benefits, and carrier reimbursement claims are all on the table. Chopra & Nocerino helps injured construction workers understand the real numbers behind their cases and fight to protect as much of their recovery as possible.
Our attorneys handle workers’ comp subrogation issues in New York, lien disputes, and third-party construction claims with the same aggressive preparation that has helped the firm recover substantial settlements and verdicts for injured New Yorkers. We keep it straightforward, explain what is actually at stake, and fight for our clients every step of the way.
Call Chopra & Nocerino at (855) NYC-HURT or reach out through our online form to schedule a free consultation.
