Understanding Workers’ Compensation in New York and Its Role in Labor Law Cases

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In New York, workers’ compensation is a system designed to provide medical care and wage replacement benefits to employees who suffer job-related injuries or illnesses. These benefits are often a critical resource for injured workers as they recover, covering medical treatment costs and lost earnings during their period of disability.

In many personal injury cases brought under New York Labor Law Sections 240 and 241(6) claims — there is also a separate workers’ compensation claim. These statutes are specifically designed to protect construction workers and others working at elevation from gravity-related hazards or unsafe worksite conditions. While a worker may pursue a personal injury lawsuit against a responsible third party, their employer’s workers’ compensation insurance typically covers immediate medical and wage replacement needs.

However, the workers’ compensation benefits received in connection with a personal injury lawsuit often result in what is known as a "workers’ compensation lien." This lien allows the compensation carrier to recover a portion of the benefits it paid once the injured worker obtains a settlement or judgment in the personal injury case. Importantly, this lien is usually reduced by certain applicable deductions, including legal fees and case expenses, which must be carefully calculated to avoid overpayment and ensure compliance with New York law.

The experienced labor law attorneys at Weber & Prakope, PLLC understand how to effectively  navigate both the personal injury and workers’ compensation aspects of these complex claims. They are highly skilled at resolving lien issues to help maximize your recovery. If you or a loved one has been injured on the job and may have both a labor law and workers’ compensation claim, contact Weber &  Prakope, PLLC at (516) 452-9010 or start a chat at weberprakope.com to discuss your legal options today.

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