Disclaimer: This information is for general educational purposes only and does not constitute legal advice. For advice on your specific situation, consult a qualified attorney.
Detailed Answer
In Nebraska, when you receive workers’ compensation benefits after a workplace injury, your employer (or its insurance carrier) gains a subrogation lien against any personal injury recovery you obtain from a negligent third party. Under Neb. Rev. Stat. § 48-118, the employer is entitled to reimbursement of benefits paid once you recover from the third party. See Neb. Rev. Stat. § 48-118.
How Subrogation Liens Work
Your employer’s lien attaches to the gross recovery, but Nebraska law requires adjustment for attorney fees and litigation expenses. Courts apply Nebraska’s apportionment rule so your employer’s reimbursement share reflects the net amount you actually receive. If your total recovery does not cover both fees and the full lien, the lien amount is reduced proportionally. This approach prevents the employer from recouping benefits at your expense of attorney fees. Neb. Rev. Stat. § 48-118 outlines subrogation rights and apportionment.
Hypothetical Example
• You receive $25,000 in workers’ compensation benefits.
• You settle a third-party claim for $200,000.
• You incur $60,000 in attorney fees and $5,000 in case costs.
• Your net recovery post-fees is $135,000 (that’s 67.5% of the gross).
The employer’s $25,000 lien is reduced by the 67.5% net factor. Your reimbursement obligation is $25,000 × 67.5% = $16,875. After satisfying the lien, your final payout is $118,125.
For details on benefit calculations, see Neb. Rev. Stat. § 48-1205.
Helpful Hints
- Promptly inform your employer and carrier when you file a third-party claim.
- Keep accurate records of all workers’ comp payments, including medical bills and wage-loss benefits.
- Work with your personal injury lawyer to calculate net recovery before applying liens.
- Review Nebraska’s subrogation and apportionment rules when negotiating a settlement.
- Ensure your settlement documents reflect any lien reductions to avoid future disputes.