Workers’ compensation and personal injury claims have overlapping but distinctly unique functions. Workers’ compensation is designed to pay for your medical bills and time off from work regardless of whether anyone is at fault for your injuries. Personal injury claims are intended to make you whole after someone else caused you injuries due to their negligence. So, what happens when you are injured on duty as a result of the negligence of a third party? Under the law you can make both claims. You can open a workers’ compensation claim with your employer and make a claim against the third party that caused your accident. But is it worth it to bring both claims? In most cases, the answer is yes. This article provides an overview of what the workers’ compensation system covers you for and what a personal injury claim includes.
Workers Compensation Claim
The Arizona Workers’ Compensation Act specifies the employer’s responsibilities to injured workers. This includes paying for your medical bills and lost wages if you miss more than seven days of work consecutively. Yet while this wage coverage is important, it is not a one-for-one benefit. Workers’ compensation does not pay for your lost overtime or off-duty jobs, nor does it compensate you for your pain and suffering. Additionally, there is a statutory maximum on the amount of wages your employer is required to pay monthly, which in 2023 is $5,393.37. This means that even if you make more than that amount per month, your wages for purposes of workers’ compensation will be set at the cap. Wages also only have to be paid at a rate of 66 2/3rd percent. As a special benefit, the City of Phoenix pays you the full wages for a limited number of hours, but once those hours are exhausted, the rate of pay returns to the 66 2/3rd percent rate provided under Arizona law.
Personal Injury Claim
A personal injury claim is designed to make you whole again. An injury claim includes your medical bills, lost wages, lost overtime or off-duty jobs, pain and suffering, and losses sustained by your spouse or family. Based on the severity of your injuries, a personal injury claim awards you a monetary sum to compensate you for the losses caused by the injuries you sustained. However, since workers’ compensation is paying for the medical bills and at least some of the lost wages, Arizona law allows for them to be reimbursed for the amount they have paid from your recovery from the third party. Despite this, you still stand to gain, in most cases, by bringing both for two reasons: firstly, workers’ compensation pays a reduced rate for the medical bills based on its contract with the health care provider whereas the full billed amount is submitted to the third party’s liability insurance company as part of the personal injury claim, and, secondly a personal injury claim allows you to recover for pain and suffering.
Moreover, workers’ compensation can only recover against your recovery from the responsible party so in the event your damages exceed the third-party insurance limits, and you had the foresight to purchase underinsured or uninsured motorist coverage with your personal auto insurance, workers’ compensation cannot impose any claim against that portion of your recovery.
We are here to help with both your workers’ compensation claim and your personal injury claim. If you have any questions about your workers’ compensation claim or if a personal injury claim is available to you, contact our office for a free consultation.
