Often the question is asked by workers’ compensation clients whether they should pursue a subrogation lien or simply waive it as part of settlement. This commentary will pursue the pros and cons of the available remedy and whether it makes strategic sense to pursue same.

Workers’ compensation benefits are the exclusive remedy an employee has against his or her employer for an on-the-job injury. This exclusive remedy provision of the Georgia Workers’ Compensation Act gives employers and insurers immunity from negligence claims for an employee’s on-the-job accidents. However, an employee injured in an accident arising out of and in the course of his employment through the negligence of a third-party has a potential claim against that party which is not impacted by his or her workers’ compensation claim. The employer and insurer have a potential subrogation right against the proceeds from the third-party claim. In 1992, the Georgia General Assembly codified the subrogation rights in O. C. G. A. § 34-9-11.1.