Workplace injuries in California often involve multiple layers of liability, and many employees may not realize that they have the right to file a third-party injury claim in addition to a workers’ compensation claim.
Publicly available data supports why workers’ compensation (WC) lawyers often have a narrow focus: California’s Workers Compensation Information System (WCIS) noted that the state recorded 680,152 First Reports of Injury (FROI) in 2023. These claims are complex and voluminous. Only a fraction of the nearly 190,000 lawyers in the state practice in this area, which is why filing and managing WC claims can keep any practitioner too busy to take on third-party injury suits. That is why collaboration will provide additional value to a client beyond WC benefits and also enhance both lawyers’ practices.
Strategic alliances between plaintiffs’ injury lawyers and workers’ compensation attorneys are not just advantageous for business—they are essential for fully protecting clients’ rights and maximizing recovery.
Workers’ Compensation and Third-Party Claims
Workers’ compensation provides no-fault benefits for work-related injuries, covering medical care, wage replacement, and rehabilitation. The injury must be reported to the employer within 30 days and the WC claim within one year of the injury. However, WC generally bars lawsuits against the employer for negligence and excludes many non-economic losses.
Third-party liability claims allow injured workers to sue negligent parties outside the employment relationship—such as subcontractors, product manufacturers, motorists, or property owners—for a broader recovery. These claims must be filed within two years of the incident (or discovery) and can include compensation for pain and suffering, loss of consortium, and, where warranted, punitive damages for particularly egregious conduct.
Maximizing Recovery While Safeguarding Workers’ Comp Benefits
Imagine a construction worker injured on-site when a steel beam, improperly secured by a subcontractor, falls and causes severe shoulder and neck injuries. He immediately alerts his employer and files a WC claim for medical bills and lost wages within the month. Imagine how his perspective will improve when he’s informed that, because a negligent third party caused the accident, he can also pursue a personal injury lawsuit (within the two-year statutory time limit) to recover for pain, suffering, and other damages.
These coordinated efforts between workers’ compensation and injury lawyers ensure that all available remedies are pursued—workers’ comp benefits and civil damages—while preserving the client’s eligibility for future workers’ comp benefits. Having a trusted injury in your network will make a huge difference in this client’s life.
Through this collaboration, litigation and settlements are strategically planned so that statements, evidence, and legal positions in one claim do not conflict with or harm the other, particularly when allocating fault or describing injury circumstances.
Identifying Settlement Sequencing Risks and Joint Planning
Maximizing the client’s recovery must always be the top priority. That’s why an honest injury lawyer will know why and when their expertise is needed – usually after the state workers’ compensation judge issues a finding and award, confirming the employee’s injuries were job-related and ordering the insurer to pay for medical treatment and temporary disability benefits. Securing a successful finding through the workers comp’ board can take months, which is a key benefit of California Code of Civil Procedure § 335.1, which allows two years from the date of the injury for a claim to be filed.
Conversely, settling the third-party civil case before carefully considering the status of the WC claim can result in several pitfalls. For example, a civil case that releases or settles claims against “all responsible parties,” can unintentionally waive the right to continue receiving WC benefits—particularly if the employer or insurance carrier is not explicitly excluded. A poorly drafted settlement can lead to a loss of future comp benefits (Cal. Labor Code § 3861), employer credits, or, in the worst case, forfeiting paid disability or medical benefits.
Joint planning between the lawyers, on the other hand, will prevent waivers. Drafting settlement agreements will protect ongoing and future WC benefits and ensuring that the comp carrier’s lien rights and the worker’s eligibility for ongoing care are preserved.
Furthermore, this dynamic will strengthen communication with carriers, as workers’ comp lawyers alert carriers to civil litigation status, negotiate liens, and obtain carrier approval where required. These are areas where WC lawyers excel, preventing surprises that could terminate benefits.
Comprehensive Medical and Case Documentation Access
The combined expertise of both legal teams strengthens each case. Workers’ compensation attorneys often have streamlined access to medical records, treatment notes, and diagnostic imaging due to established relationships with approved providers in the comp system.
This access is invaluable for the plaintiff’s injury lawyer, as it provides a detailed and contemporaneous record of diagnoses, treatment plans, and work restrictions directly from the onset of the injury. Sharing these records strengthens the civil case by creating a consistent, unbroken narrative of the injury, reduces the risk of conflicting medical opinions, and ensures that damages in the third-party claim are fully supported with credible medical evidence acceptable to both civil and WC adjudicators.
Practical Steps for the New Legal Team
Pragmatism should drive the alliance between the lawyers. Both bring unique skillsets to the table, and egos should not prevent the client from receiving the best representation. Some reasonable tips and terms for aligning include:
- Initial Intake. Both lawyers assess the claims, clarify injury cause, and confirm all responsible parties.
- Fee Arrangements. Transparent agreements ensure fair allocation between both legal teams, avoiding unintended employer credits, as noted in Labor Code § 3861.
- Regular Updates. Teams confer throughout the claims process to update on medical status, settlements, and new evidence—protecting the worker from conflicting positions or administrative traps.
- Settlement Drafting. Collaboration means drafting precise settlement language—explicitly protecting continued WC benefits, reserving rights, and excluding the comp carrier from “all claims released.”
The Value of Professional Relationships Between Workers’ Comp and Injury Lawyers
In workplace injury cases involving third-party liability, a single lawyer can rarely protect all of a client’s interests in both systems. By working together, workers’ compensation and plaintiffs’ injury attorneys can maximize total recovery, protect ongoing benefits, and avoid procedural missteps that could harm the client’s future rights.
These alliances not only build stronger cases but also create lasting professional referral partnerships—and most importantly, they ensure California’s injured workers receive the comprehensive justice they deserve.
