AI-assisted research summary: A benefit recipient who sues a third party must notify the employer, or the director if unemployed, and the benefit provider may recover its subrogation share from the claim or judgment.
If any individual who has received benefits under this chapter is entitled to recover damages from a third person who is responsible for the sickness or accident causing the disability, the employer, the association of employers, the insurer, or the trust fund for disability benefits, providing disability benefits shall be subrogated to, and have a lien upon, the rights of the individual against the third party to the extent that the damages include wage loss during the period of disability for which temporary disability benefits were received in the amount of such benefits. If the individual commences an action against such third party, the individual shall notify the individual's employer, or the director if the individual is unemployed, of the action and the court in which it is pending. The employer, the association of employers, the insurer, or the trust fund for disability benefits, providing disability benefits may join as party plaintiff or claim a lien on the amount of any judgment recovered by the individual in such action to the extent of its subrogation rights. If the individual does not commence the action within nine months after the commencement of the sickness or the date of the accident causing the disability, the employer, the association of employers, the insurer, or the trust fund for disability benefits, providing temporary disability benefits may commence such action, but the individual shall be entitled to join the action and be entitled to any surplus over the amount to which the employers, the association of employers, the insurer, or the trust fund for disability benefits is subrogated. [L 1969, c 148, pt of §1; gen ch 1985; am L 2013, c 100, §8] Case Notes Temporary disability insurance carrier is not entitled to full reimbursement of benefits from its insured's employee under section's subrogation and lien rights when employee receives a "general damages only" settlement from tortfeasor. 73 H. 403, 833 P.2d 890 (1992).