The term subrogation in a Missouri workers' comp case refers to what the law allows for employers or their insurers to seek reimbursement from a negligent third party who was responsible for causing an employee's workplace injury. If an injured worker receives a personal injury settlement, the workers' compensation insurer can claim a portion of that award to recover the payments it made for medical expenses and lost wages.
If you've wondered whether you can sue your employer instead of filing workers' comp, you may have been disappointed to learn that in most cases, the Missouri workers' comp system does not allow that option. Instead, filing a third-party lawsuit after a workers' comp injury is much more likely when a subcontractor on the jobsite or another negligent party causes you harm.
However, with a lawsuit, there is the likelihood of subrogation, where some of your compensation award may be recovered by the workers' comp insurer or your own employer. The Ruediger Formula is a Missouri law that requires attorneys' fees and expenses to be paid from the settlement before an employer or their insurer can be reimbursed. If you get a large third-party settlement, the insurer may even stop making additional workers' comp benefit payments until the amount is even.
This matters because you could wind up with much less for your settlement if you do not properly value your injuries and long-term impacts. The Bruning Law Firm helps Missouri workers understand their rights and options under state workers' compensation law, including what subrogation may mean in every scenario and works to maximize compensation awards.
Frequently Asked Questions
Can I keep my whole personal injury settlement in Missouri?
No, when you receive workers' compensation benefits for your injury claim and that injury was caused by a third party, the insurer will issue a lien on your settlement. You can usually deduct attorney fees and expenses from that repayment, thanks to Missouri law. Why choose workers' comp over a personal injury lawsuit? Sometimes, you may not need to choose, though knowing what is best in your specific scenario by speaking to our St. Louis workers' comp attorneys can help you take the right steps.
How does the "Ruediger Formula" work in Missouri?
The Ruediger Formula is what is used to calculate the share of costs of recovery for the insurer. This formula ensures that the employer's reimbursement is proportionally reduced by attorney fees and expenses first.
What happens if I settle my workers' comp claim first?
If you settle your Missouri workers' compensation claim first, it could complicate the third-party lawsuit you plan to file. Your employer and their insurer can't put a subrogation claim on a future lawsuit, and since these situations are complex enough, it is always ideal to speak with our Missouri personal injury attorneys first to ensure you maximize your financial recovery.
Contact The Bruning Law Firm
The Bruning Law Firm has been helping injured workers for over 35 years in Missouri workers' compensation cases to understand their rights and options while fighting for maximum compensation. There is no fee unless we win, so call (314) 735-8100 to schedule a free consultation with a St. Louis work injury lawyer from our legal team.