Should Employers Participate in Subrogation for Workers’ Compensation?
Workers’ compensation is a system in the United States and many other countries that provide benefits to injured workers or who contract an illness at work. State governments usually administer the program as part of social welfare programs. In recent years, there has been a growing trend of employers participating in subrogation for workers’ compensation. This practice allows employers to recover some of the costs of the benefits they have paid out to employees. This practice has pros and cons, and there is no clear consensus on whether or not it is a good idea. This article will explore the pros and cons of employer participation in workers’ compensation subrogation. What is Workers’ Compensation Subrogation? Workers’ compensation subrogation is a legal process that allows an insurance company to recover benefits it has paid to an injured worker from a third party liable for the worker’s injuries. Essentially, it will enable the insurance company to “step into the shoes” of th...