Third-Party Claims When You're Hurt at Work in Tennessee

This is general information, not legal advice. A Tennessee workers’ compensation attorney can help with your specific situation.

Tennessee workers’ comp is the exclusive remedy against your employer — meaning you generally cannot also sue your employer in civil court for the same work injury (T.C.A. § 50-6-108). But that exclusivity only applies to the employer. If a third party caused or contributed to your injury, you may have two separate legal claims running at the same time.

The exclusive remedy rule and its third-party exception

Workers’ comp gives injured employees fast access to medical care and wage replacement without having to prove fault. The tradeoff is the exclusivity bar: your employer is shielded from common-law tort suits. That shield does not extend to third parties. Under T.C.A. § 50-6-112, if a third party’s negligence caused your injury in the course of your employment, you can pursue both workers’ comp benefits from your employer and a civil lawsuit against the third party.

Common third-party scenarios

Third-party claims arise in situations such as:

• Delivery or transportation workers struck by a negligent driver while making work-related trips
• Construction workers injured by the negligence of a subcontractor or general contractor on a job site (not their direct employer)
• Workers injured by defective equipment or machinery — a products liability claim against the manufacturer
• Workers hurt on another party’s property due to unsafe conditions — a premises liability claim against the property owner

How the two claims work together

You do not have to choose between workers’ comp and a third-party lawsuit — you can pursue both simultaneously. Workers’ comp pays your authorized medical bills and 66⅔% of lost wages quickly, without proving fault. The civil lawsuit can recover what workers’ comp does not: full wage loss (not just two-thirds), pain and suffering, loss of enjoyment of life, and, in appropriate cases, punitive damages.

The employer’s subrogation lien

The employer’s workers’ comp insurer does not pay your medical and wage benefits out of generosity alone. Under T.C.A. § 50-6-112, the insurer acquires a subrogation lien against any money you recover from the third party. Here is how the lien typically works:

1. Attorney’s fees and litigation costs are deducted from the third-party recovery first.
2. The remaining proceeds are used to repay the workers’ comp insurer’s lien (the total benefits paid to date).
3. Any amount above the lien that remains belongs to you.
4. If the third-party recovery exceeds the total comp benefits paid, the employer also receives a credit against future workers’ comp liability — meaning the insurer may pay less in future benefits until the credit is exhausted.

Lien negotiations are common. Insurers often accept a reduced lien repayment to facilitate settlement of the third-party case, especially if the total recovery is limited.

Timing: civil SOL vs. workers’ comp SOL

The civil lawsuit against a third party is governed by the standard personal injury statute of limitations — generally one year under T.C.A. § 28-3-104, which is short. The workers’ comp claim has its own deadline under T.C.A. § 50-6-203. The two clocks run independently. Missing the civil deadline can eliminate your third-party claim even if your workers’ comp claim is still active.

Why an attorney matters here

Coordinating a workers’ comp claim and a civil lawsuit requires tracking two separate legal proceedings, managing the subrogation lien, and ensuring that settlements in one proceeding do not inadvertently affect the other. An experienced Tennessee workers’ comp or personal injury attorney can structure both claims to maximize your total recovery.

To explore your options, see the Workers’ Compensation hub or get help now.