Detailed Answer
If you’re injured at work but another party—such as a negligent driver—also contributed to your injury, you may pursue a personal injury claim in addition to Wyoming workers’ compensation benefits. Under Wyoming law, your employer (or its insurance carrier) can assert a lien on any recovery you obtain from that third party. That lien ensures the insurer is reimbursed for the benefits it paid, including medical expenses and wage‐loss payments.
Wyoming Statutory Basis for the Lien
Wyoming Statute § 27-14-410 governs reimbursement from third‐party recoveries. It provides that when an injured worker recovers from a third party, the employer or insurer is entitled to be repaid the amount of compensation already paid or to be paid. See Wyo. Stat. § 27-14-410.
How the Lien Affects Settlement Funds
- Priority of Repayment: The carrier’s lien attaches to any portion of your third‐party settlement or verdict that compensates medical expenses or lost wages covered by workers’ compensation.
- Allocation Matters: You and the third‐party defendant should allocate the settlement among categories (medical bills, lost wages, pain and suffering). Only amounts earmarked for medical and wage losses are subject to the lien. Proper allocation can reduce the lien’s impact.
- Attorney Fees and Costs: Wyoming limits the insurer’s recovery to a pro rata share of attorney fees and costs. Under § 27-14-410, the employer may deduct the same percentage of fees and costs from its lien as you pay on the total recovery.
- Net Recovery: The insurer cannot demand more than the net amount you actually receive after attorney fees and litigation costs.
Practical Steps in Settlement Negotiations
To handle a workers’ compensation lien effectively, follow these best practices:
- Notify Early: Tell your workers’ compensation insurer about any third‐party claim as soon as possible. Wyoming courts expect prompt notice of intent to seek third‐party damages.
- Demand Statement of Lien: Before settling, ask the insurer for a written breakdown of its lien. Verify amounts paid and future benefits reserved.
- Negotiate Allocations: Work with your personal injury attorney to allocate settlement funds strategically. Minimizing the portion tagged as medical or wage loss helps preserve more of your recovery.
- File a Petition if Needed: If you and the insurer cannot agree on lien amounts, you can petition the Wyoming workers’ compensation court to determine a fair reimbursement figure.
Common Questions
Can I settle without paying the lien? No. Under Wyoming law, the workers’ compensation insurer has a statutory right to reimbursement. Settling without addressing the lien exposes you to legal risk.
What if the insurer overstates its lien? You may challenge the amount in Wyoming’s workers’ compensation court. The court can adjust the lien to reflect only valid, paid benefits and appropriate fee allocations.
Helpful Hints
- Keep clear records of all compensation benefits paid and future medical reserves.
- Engage both a personal injury lawyer and a workers’ compensation attorney to coordinate strategy.
- Review the lien calculation against your medical bills and wage‐loss records.
- Negotiate directly with the insurer over the proportion of attorney fees deductible from the lien.
- Consider early mediation through the Wyoming Office of Administrative Hearings if disputes arise.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation under Wyoming law.