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Workers' Compensation Lien

A workers' compensation lien is the employer or carrier's right to be reimbursed, out of an injured worker's third-party recovery, for the benefits it paid.

Also known as: comp lien, workers comp subrogation

When a worker injured on the job also has a claim against a negligent third party, the workers' comp carrier that paid medical and wage benefits generally holds a lien on the worker's recovery from that third party. Lien rules (including offsets and the employer's share of fault) vary significantly by state.