Workers' Comp vs.
Lawsuit
As an injured construction worker in New York, you may be entitled to both workers' compensation AND a Labor Law 240 lawsuit. Understanding the difference is crucial to maximizing your recovery.
Workers' Compensation vs. Third-Party Lawsuit in New York
The Most Important Thing to Know
Workers' comp and a Labor Law 240 lawsuit are NOT mutually exclusive. You can receive workers' comp benefits while also pursuing a lawsuit against the property owner or general contractor.
Side-by-Side Comparison
Benefits
- Quick access to medical care
- Wage replacement benefits
- No need to prove fault
- Available for most workplace injuries
Limitations
- Limited wage replacement (typically 2/3 of wages)
- No pain and suffering damages
- Cannot sue your direct employer
- Benefits are capped by state law
Benefits
- Full compensation for all damages
- Pain and suffering recovery
- No caps on damages in NYC
- Can sue property owners and general contractors
- Your fault doesn't reduce recovery (Labor Law 240)
Considerations
- Takes longer than workers' comp
- Must prove case at trial (or negotiate settlement)
- Cannot sue your direct employer
| Category | Workers' Comp | Labor Law 240 Lawsuit |
|---|---|---|
| Who Pays | Your employer's insurance | Property owner/general contractor's insurance |
| Medical Bills | Covered | Full recovery |
| Lost Wages | Partial (2/3 of wages, capped) | Full lost earnings, past and future |
| Pain & Suffering | Not available | Full recovery (often largest component) |
| Proving Fault | Not required | Not required under Labor Law 240 (strict liability) |
| Your Negligence | Doesn't matter | Doesn't reduce recovery under Labor Law 240 |
| Timeline | Benefits start quickly | 2-4 years typical |
| Typical Total Value | $50,000 - $200,000 | $500,000 - $5,000,000+ |
The Bottom Line
For construction workers injured in gravity-related accidents in New York, pursuing both workers' compensation and a Labor Law 240 lawsuit is typically the best strategy:
- Workers' comp provides immediate medical coverage and partial wage replacement while your case is pending.
- A Labor Law 240 lawsuit provides full compensation including pain and suffering, which often far exceeds workers' comp benefits.
- Both can proceed simultaneously, and the workers' comp carrier will typically be reimbursed from the lawsuit recovery (called a "lien").
Understand the Two Claim Tracks
Use these pages to connect workers' compensation questions with the New York Labor Law pages and related support guides.
Maximize Your Recovery
Don't settle for workers' comp alone. Find out if you have a Labor Law 240 case.