What is a Workers’ Compensation Lien?

Hurt on the job in Athens or elsewhere in the broader region in Georgia? You have the right to file a no-fault workers’ comp claim to seek medical coverage and wage loss benefits. Workers’ comp cases are complicated. One of the reasons is that multiple different insurance companies might be involved, especially if you also have an additional claim against a negligent third party.

Your workers’ comp insurer may even have a lien against your settlement. This raises an important question: What is a workers’ compensation lien? The short answer is that in Georgia, a workers’ comp lien is a legal claim that an insurance company can bring to seek reimbursement. Here, our Athens workers’ compensation attorney provides a guide to workers’ comp liens in Georgia.

Understanding Workers’ Comp Liens

A workers’ compensation lien is a legal claim that a workers’ compensation insurer places on any third-party recovery the injured worker obtains. If the employee sues another party, the insurer may assert a lien to be reimbursed for benefits already paid. The lien typically covers medical expenses and wage-loss benefits paid under the workers’ comp system. In effect, the workers’ comp lien system is designed to ensure that the worker does not receive a so-called “double recovery.”

Know the Law in Georgia: O.C.G.A. § 34-9-11

The more important statute for workers’ compensation liens in Georgia is O.C.G.A. § 34-9-11. It is a provision that gives an employer or (more often) its insurer the right to recover benefits paid if the injured worker obtains compensation from a negligent third party. In practice, the statute creates what is known as a “subrogation lien” or a ”workers’ comp lien.” That lien attaches to the proceeds of a personal injury settlement or a personal injury judgment.

There are protections for injured workers. Georgia law limits the lien strictly to the amount of benefits actually paid. It cannot exceed the injured worker’s net recovery under any circumstances. Beyond that, state law requires that the employee must be “made whole” before the lien is enforced. In other words, if the worker’s damages exceed the recovery obtained, the lien may be reduced or barred outright.

What to Know About Work Injuries and Third-Party Liability Claims in Georgia

A third-party liability claim arises when an injured worker in Georgia seeks compensation from someone other than their employer or co-worker for causing their injury. Workers’ compensation provides no-fault benefits, but it does not bar you from suing a negligent third party. For example, if you are hurt in a car crash while driving for work, you may bring a personal injury claim against the at-fault driver. Alternatively, if you are a worker who has been hurt on a construction site in Athens due to the negligence of a contractor or subcontractor, you may have a third-party liability case. A third-party claim allows recovery for additional damages, such as pain and suffering.

Tip: You should always file for workers’ comp benefits after a job-related accident in Georgia. From there, you may have an additional claim against a negligent third party. These are not “either/or” claims. An injured worker can pursue both types of legal claims.

Know the Intersection Between Workers’ Comp Liens and Third-Party Liability Cases

Where do workers’ comp liens come into play? When you bring both a workers’ comp claim and a third-party liability claim, Georgia law effectively prevents you from getting a so-called “double recovery.” Workers’ comp cases tend to be resolved more quickly than third-party liability claims. Medical benefits and wage replacement benefits may come almost immediately. If an injured worker subsequently recovers additional compensation through a third-party liability claim, a workers’ comp insurer can seek reimbursement for the costs that it paid that were paid out a second time later on in the process by the defendant and/or insurance company in a third-party liability case.

Note: In Georgia, courts have consistently emphasized that any workers’ comp lien must be carefully and reasonably narrowly calculated to avoid overreach by an insurance company.

Georgia’s “Made Whole” Doctrine Helps to Protect Your Rights and Interests

Georgia operates under the “made whole” doctrine for workers’ compensation liens. The doctrine ensures that an employee must first be fully compensated for their damages before the workers’ comp insurer can enforce its lien. Here is an example of how the doctrine might work in practice:

• Imagine that your economic damages and non-economic damages total $250,000. The workers’ comp insurer initially pays out benefits. However, you also have a claim against a negligent third party. However, you only recover $150,000 from a negligent third party. In that situation, you have not been made whole. That means that the workers’ comp insurer should not have any actual recoverable lien against you.

A key thing to remember about workers’ comp liens is that they are for the so-called “double recovery.” If you suffered $100,000 in damages, workers’ comp covers your medical costs, and you get a $100,000 payout, then you have been made whole. In that case, the workers’ comp insurer may actually have a viable lien against a portion of your settlement.

Some Practical Considerations to Keep in Mind When Dealing With Workers’ Comp Liens

There are some practical considerations to be aware of in workers’ comp cases. To start, injured workers in Georgia should know that liens are not always enforced automatically. Insurers must provide proper notice and demonstrate the amount paid in benefits. Next, workers and their attorneys often negotiate reductions of the lien amount. Carriers may agree to accept less than the full amount to facilitate settlement. That is particularly true if liability in the third-party case is contested or the recovery is limited by available insurance coverage. Further, injured workers should be aware of the distinction between benefits that are reimbursable and those that are not. Finally, coordinating the timing of workers’ comp and third-party claims is essential. A proactive approach is a must, and a skilled Athens, GA workers’ comp attorney can help.

Why Trust The Larrison Law Firm for a Work Injury Case in Georgia

Workers’ compensation cases can be deeply complex. Challenges can arise for a wide range of different reasons, including those related to workers’ compensation liens. At The Larrison Law Firm, we are a solutions-focused law firm that puts workers and their families first. Our case results demonstrate what we can do for our clients. Your initial consultation with our Athens workers’ comp lawyer is free, confidential, and carries zero additional obligations.
We are located right here in Athens. The city spans four main ZIP codes that reflect its unique character. 30601 anchors the city center, with historic neighborhoods, local government buildings, and the nightlife scene around Broad and Clayton Streets. 30605 covers the southeast, where UGA’s East Campus, Athens-Ben Epps Airport, and family neighborhoods like Cedar Creek sit alongside large student housing complexes. 30606 stretches west through Five Points and Beechwood, home to shopping corridors, St. Mary’s Hospital, and established residential areas. The final zip code, 30607, covers the northwest corner of the city.

Contact Our Athens, GA Workers’ Comp Attorney for a Free Case Review

At The Larrison Law Firm, our Athens, GA workers’ comp attorney has the knowledge and experience that you can count on when it matters the most. If you were hurt on the job and have questions about workers’ comp liens, our team can help. Call us now or contact us online for your free, no obligation initial consultation. We fight for justice and the maximum benefits for injured workers in Athens and throughout the surrounding region in Georgia.