Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Nevada law allows injured employees to recover under workers’ compensation benefits and pursue claims against third parties whose negligence caused workplace injuries. When you settle a personal injury claim, you must coordinate benefits to avoid double recovery. State law requires you to reimburse the workers’ compensation insurer for benefits paid from any third-party recovery, up to the amount of benefits received. This right of subrogation and reimbursement is set forth in NRS 616C.300.
To coordinate benefits effectively:
- Notify Your Insurer: Send written notice to your employer’s insurer when you file a third-party lawsuit. Early notice preserves subrogation rights.
- Reserve Lien Rights: In your personal injury complaint or demand, include a reservation of rights in favor of the workers’ compensation insurer. This step clarifies repayment obligations.
- Allocate Settlement: Structure your settlement by itemizing compensation for medical expenses, lost wages and non-economic damages. Proper allocation can minimize the reimbursable amount. Under NRS 616C.300, the insurer may recover only the benefits it paid.
- Secure Court Approval: Submit a petition to the workers’ compensation hearing officer or district court (if applicable) requesting approval of the settlement and the lien release. Nevada courts enforce workers’ compensation liens according to NRS 616C.310.
- Distribute Funds: After court approval, the insurer issues a lien release. You can then distribute settlement proceeds, reimburse the insurer up to the approved amount, and retain your net recovery.
Helpful Hints
- Act promptly: Provide notice and reserve lien rights early in litigation.
- Gather documentation: Keep records of all workers’ compensation benefits received.
- Work with attorneys: Use both a workers’ compensation attorney and a personal injury lawyer to protect your interests.
- Review allocation carefully: A clear settlement breakdown helps avoid disputes over reimbursement.
- Check deadlines: Nevada law imposes time limits to enforce subrogation rights.