Regarding Workers' Compensation Liens

Last updated: Jun 2, 2019

Details about this bill
Category: Wage and Labor
Status: Defeated
Sponsor: Senator Shenna Bellows, Senate 14 - Kennebec County
Session: 129
Bill #: LD 1095




When a worker suffers an injury or death that is eligible for workers' compensation benefits under the Maine Workers' Compensation Act of 1992 and that is sustained under circumstances that create legal liability for a 3rd person, the injured employee may either claim workers' compensation benefits or seek damages in a civil suit against that 3rd person to recover damages. Under current law, if the injured employee chooses to claim workers' compensation benefits from the employer, the employer has a lien on any damages subsequently recovered against that 3rd person in the civil action for the value of workers' compensation benefits paid.

This bill limits the amount of the lien of the employer of the injured or deceased employee to only the value of damages received by or on behalf of the injured or deceased employee that are attributable to compensation for past or future medical treatment and loss of income or earning capacity.