The workers’ compensation statute in many states provides that the workers’ compensation benefits received by an injured employee is the employee’s exclusive remedy. The benefits are paid based on a no-fault basis and the injured employee is barred from bringing a lawsuit against his or her employer. The degree in which the exclusive remedy provision applies varies in different jurisdictions. An ABA 50-State Survey on the exclusive remedy provisions can be found by clicking HERE.
In many construction contracts, a contractor indemnifies an owner for personal injury and property damage caused by the contractor’s negligence.
Here is the fact scenario: A contractor’s employee gets injured on a jobsite. The employee receives workers’ compensation benefits but has incurred additional damages beyond those benefits. The contractor employee cannot bring a lawsuit against the his employer based on the workers’ compensation exclusive remedy provision, but the employee may bring a lawsuit against the owner for the personal injury damages. Owner
