Two separate recoveries
Workers’ comp and a third-party Labor Law lawsuit are different things. Comp is a no-fault benefit from your employer’s insurer that pays medical care and partial wages regardless of who was at fault. A Labor Law suit is a fault-based civil case against an owner or contractor that can compensate for things comp does not, such as pain and suffering.
Because your employer is generally protected by workers’ comp, the lawsuit is aimed at other responsible parties – the owner or general contractor – not your direct employer.
The comp lien
When you receive both, the two are coordinated through a lien. Under New York law, the comp carrier that paid your benefits generally has a lien against your third-party recovery, so a portion of what you win in the lawsuit may reimburse the carrier.
How the lien is calculated and negotiated – including the carrier’s share of litigation costs – is a significant part of resolving a case with both claims, and it is technical.
Why both matter
Pursuing comp keeps your medical care and wage benefits flowing while the slower lawsuit proceeds. The lawsuit, when the Labor Law applies, can reach damages that comp alone cannot.
Coordinating the two – and handling the lien – is squarely lawyer territory. If you were hurt on a construction site and an owner or contractor may be responsible, a licensed New York attorney can evaluate whether you have both claims.