Subrogation may apply where the injured worker has a "third party action" as a result of the injury. A "third party action" exists when a worker suffers an injury in the course of their employment which gives them a right to workers' compensation benefits and also gives them a right to sue a third party for a personal injury, in addition to the workers' compensation claim. The personal injury claim is referred to as the "third-party action".
Subrogation means that the Bureau of Workers' Compensation or Self-Insured Employer is entitled to seek reimbursement from the "third party action" against any workers' compensation benefits paid to the injured worker. In Ohio, the State Legislature has determined that there should be no "double" recovery and therefore permits the BWC claim to be subrogated to the "third party action".
As a result, there may be instances where pursuing a "third party action" is not worthwhile because the BWC and/or the Self Insured Employer will not assist in any litigation expenses that might be necessary to obtain the "third party recovery".
The issue of the constitutionality of subrogation in a workers' compensation claim is currently pending before the Ohio Supreme Court. We will keep you posted.