Workers' Comp vs. Third-Party Lawsuits: Pros & Cons (Michigan Guide)

If you were hurt at work in Michigan, workers comp probably started paying your medical bills and part of your wages.

But workers comp is built to pay the minimum the law requires, not to make you whole.

In Michigan, wage loss benefits are about 80 percent of your after-tax average weekly wage and are capped at a state maximum. does not pay you anything for pain and suffering.

Workers' Comp is for bills. Third-Party Lawsuits are for YOU.

At The Lee Steinberg Law Firm, our job is simple: we find the money you did not know existed. For more than 50 years, we have helped injured people all over Michigan go after every at-fault driver, contractor and company that caused their injuries.

If your workers comp check is not enough, you may be able to bring a third party lawsuit on top of your comp case.

Call 1-800-LEE-FREE (1-800-533-3733) for a free case review. You pay nothing until we win.

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QUICK SUMMARY: WORKERS COMP vs. LAWSUITS

• Workers' Comp: Pays medical bills & 80% of wages. No pain and suffering.
• Third-Party Lawsuit: Pays 100% of wages + pain and suffering.
• Who to Sue: You cannot sue your boss. You can sue a negligent driver, subcontractor, or equipment manufacturer.

Best Strategy: File BOTH claims to maximize your money.

Quick Answer - Can I Sue A Third Party For A Work Injury In Michigan?

Yes, in many cases you can.

Michigan law says workers comp is usually your "exclusive remedy" against your employer. That means for a normal work accident, you cannot sue your own boss for pain and suffering.

But that same law does not protect other people or companies that hurt you.

If a third party was careless and that helped cause your work injury, you can file a separate negligence lawsuit against that person or company. This is true even if you are already getting workers comp.

A third party can be:

• A driver from another vehicle who hit you while you were driving for work.
• A general contractor or subcontractor on a who is not your direct employer.
• A property owner or business where you were working (for example, a client site or store).
• A manufacturer or seller of a defective machine, tool or safety device.
• A maintenance or repair company that did unsafe work on equipment.

Key point: Workers comp stops you from suing your boss, but it does not stop you from suing other people who caused your injury.

What Michigan Workers Comp Really Pays

Workers comp is a safety net. It is there so you are not left with nothing after a work injury.

How Workers Comp Works In Michigan

Workers comp is a No-Fault system. You can get benefits even if the accident was partly your fault. In exchange, you give up the right to sue your employer in a normal injury lawsuit, except in rare intentional harm cases.

Workers Comp Pros:

• You do not have to prove your boss did anything wrong to get basic benefits.
• It pays for reasonable and necessary medical care for your work injury.
• It pays about 80 percent of your after tax average weekly wage, up to a cap set by the state.
• It can include mileage for medical visits, vocational rehab and in serious cases home attendant care.

Workers Comp Cons:

• No money for or emotional distress.
• No money for how the injury changed your life, your sleep, your family or your hobbies.
• Wage checks are only part of what you earned before and are capped, so high earners lose a lot of income.
• You cannot sue your boss or most co-workers for more money, even if they were careless.
• The insurance company can send you to its own doctors and try to cut off your checks.

Workers comp is important. But for many injured workers, it is only the floor, not the ceiling.

What Is A Third Party Work Injury Lawsuit?

A third party lawsuit is a separate case against a person or company other than your employer whose negligence helped cause your work injury.

You keep your workers comp case. The third party case is in addition to it, not instead of it.

Third Party Lawsuit Pros:

• Money for pain and suffering, including physical pain, mental anguish and loss of enjoyment of life.
• Money for emotional distress and trauma.
• Ability to seek 100 percent of your past and future wage loss, not just 80 percent after tax.
• Ability to claim future medical costs, household help and other long term harms.
• The final settlement or jury verdict can be many times larger than workers comp alone.

Third Party Lawsuit Cons:

• You must prove fault. We have to show the third party was careless and that this caused your injury.
• The workers comp insurer often has a lien on part of your third party recovery, so some money must pay back what comp already paid.

Even with these cons, a well-built third party case is often the only way to get real compensation for what you and your family went through.

Side By Side - Workers Comp vs Third Party Lawsuit In Michigan

QuestionWorkers CompThird Party LawsuitWho is it againstYour employer and its insuranceA person or company that is not your employerDo you need to prove faultNoYes, we must prove negligenceMedical billsPaid while treatment is reasonable and necessaryCan claim future and unpaid medical billsWage lossAbout 80% of after tax wages (Capped)Can seek 100% of past and future wage lossPain and sufferingNot covered at allMain part of the caseEmotional distressNot coveredCovered as non-economic damagesTime limitsGenerally 2 years to fileGenerally 3 years to file (Statute of Limitations)

Workers comp is for bills. Third party lawsuits are for you.

Real Michigan Examples Of Third Party Work Injury Cases

Here are common situations where you may have both workers comp and a third party case at the same time.

1. Car Or Truck Crash While Driving For Work

You are a delivery driver hit by a drunk driver, a truck driver rear ended on the freeway, or a home health aide hit while driving between locations.

• Workers Comp: Pays medical care and part of wage loss.
• Third Party: You sue the at-fault driver for pain and suffering and full wage loss under.

2. Construction Site Injury Involving Another Company

On big job sites there are many companies: general contractors, subs, suppliers, crane companies and more.

• Example: A scaffold built by another company collapses under you, or a different subcontractor drops materials from above.
• The Claim: Workers comp comes from your employer. But you may have a third party claim against the other contractor or company that created the danger.

3. Defective Machine Or Tool

You work in a plant, factory or warehouse. A machine with a bad guard, faulty switch or hidden defect pulls you in or crushes your hand.

• The Claim: You may have a products liability case against the machine maker, distributor or the outside company that serviced the machine.

4. Slip And Fall At A Customer Or Client Property

You are sent to a client site, store or another business as part of your job and you slip on ice or trip over broken flooring.

• The Claim: You may have a premises liability case against the property owner for failing to keep the property reasonably safe.

How To Get More Money Than Workers Comp In Michigan

If your workers comp checks do not cover the rent and your pain is ignored, here is the basic game plan.

1. Do Not Give Up Your Rights: Do not sign a workers comp buyout or settlement before a lawyer reviews it. Once you sign, it is very hard to reopen.
2. Let Us Search For Every Third Party: Our team reviews police reports, OSHA records, and contracts to find who is really at fault.
3. Run Workers Comp And Third Party Together: We fight to keep your weekly checks coming while we build the bigger third party case for pain and suffering.
4. No Upfront Cost To You: The Lee Steinberg Law Firm works on a contingency fee. You pay no upfront fees. We only get paid if we win money for you.

Michigan Workers Comp And Third Party - Common Questions

Does Workers Comp Pay For Pain And Suffering?
No. In Michigan, workers comp pays medical care and wage loss but does not pay for pain and suffering. To get pain and suffering, you need a separate third party negligence case.

Can I Get 100 Percent Of My Lost Wages?
Workers comp only pays about 80 percent of your after tax average weekly wage. In a third party case, you can seek 100 percent of your past and future wage loss.

Will A Third Party Case Stop My Workers Comp Checks?
Usually no. Your workers comp case and third party case are separate.

What Does It Cost To Hire The Lee Steinberg Law Firm?
There is no fee unless we win. The firm takes cases on a contingency fee. You do not pay upfront.

Your Next Step

Workers comp was never meant to be your full recovery. It is the minimum the law gives you. Third party cases are where we fight for real compensation for you and your family.

If you were hurt at work anywhere in Michigan, you owe it to yourself to find out if there is a third party case.

Call 1-800-LEE-FREE (1-800-533-3733) or visit the Lee Steinberg Law Firm website to schedule a free consultation. We will review your workers comp benefits, search for every possible third party, and explain how much more you may be able to recover.

This guide is general information, not legal advice. Every case is different and strict deadlines apply under Michigan law.