Workers Compensation Newsletters

Assignment of Employee's Action Against Third Party

When an employee is injured in the course of his employment and thereby entitled to bring a cause of action against a third party, the right to pursue such action can be assigned to the employer or its workers' compensation carrier. The key to assignment in many jurisdictions is the actual payment of workers' compensation, while other states require a "claim" for compensation. Once the requisite criterion is satisfied, the employer is subrogated to all the rights of the employee.

Workers' Compensation Award Credit for Actual Earnings

In some instances, an injured employee will return to his former position and resume making the same earnings as before the injury. When such an individual has received a workers' compensation benefit, the question arises whether the employer is entitled to a credit on the amount of benefits that were paid to the employee. If the employer paid the employee's wages, intending such wages to take the place of any benefit compensation, then the employer would be entitled to a credit. However, there is rarely direct evidence of the employer's intention in this regard.

Work Incentives for Supplemental Security Income Beneficiaries

The Social Security Administration's work incentives program was instituted to help disabled individuals take advantage of employment opportunities and thereby gain a measure of independence. Special rules were designed to reduce the risk that a disabled or blind Supplemental Security Income (SSI) beneficiary who chose to work would lose their SSI or Medicaid benefits.

"Severe Impairment" for Social Security Disability Determination

In order to recover social security disability benefits, an individual's impairment must be so severe as to significantly limit his ability to work. If the impairment is found to be "not severe," the individual will not be considered "disabled." As established by medical evidence, an impairment constituting only a mild abnormality that has only a minimal effect on the individual's ability to work is not "severe." If an individual suffers from more than one impairment, the impact of the combination of the impairments will be evaluated rather than each impairment independent of the other.

Pre-Employment Injuries

Generally, compensation will be denied for injuries incurred prior to an employee being actually hired. However, courts have tended to reject form over substance and allowed compensation when the employee was hired though he had not finished the full hiring process such as completing the employer's business paperwork like payroll and tax forms. Compensation turns on whether a contract of hire has been entered into between the employer and potential employee -- an express or implied contract will suffice.