Utah Workers' Compensation Third-Party Claims: Suing Someone Other Than Your Employer

General information, not legal advice. Read the full disclaimer.

Short answer: Utah's workers' compensation system is the exclusive remedy against your employer and its officers, agents, and employees (Utah Code § 34A-2-105) — you generally can't sue them for a work injury. But when someone other than your employer caused the injury through a wrongful act or neglect, you may claim compensation and also bring an action for damages against that third person (§ 34A-2-106(1)). Examples include a negligent driver, an equipment manufacturer, a property owner, a general contractor, or a subcontractor.

Who this guide is for

Utah workers hurt on the job — and families of workers killed — where a non-employer may share responsibility: a crash with another driver, a defective machine, a dangerous site controlled by another company, or a subcontractor's error.

Who counts as a "third party"

Under § 34A-2-106 you may sue a person who is not your employer, an officer, agent, or employee of your employer. The statute specifically allows actions for damages against a subcontractor, general contractor, independent contractor, property owner, or lessee or assignee of a property owner who is not in an employee-employer relationship with you at the time of injury and who is not considered an eligible employer under the Act (§ 34A-2-103). Which company is really your "employer" — and which entities are protected by the exclusive-remedy rule — can be contested, especially on construction sites and with staffing agencies. A temporary staffing company that secures workers' compensation can extend exclusive-remedy protection to the client company.

Notice requirements

Before proceeding against a third party, you (or your heirs) must give written notice of your intention to bring an action to the carrier and any other person obligated for compensation payments, to give them a reasonable opportunity to appear. You must also give written notice of any known attempt to attribute fault to the employer (or its officers, agents, or employees) by settlement or in a proceeding.

The carrier's role and repayment

• Once compensation is claimed and the carrier is obligated to pay, the employer or carrier becomes trustee of the cause of action against the third party and may maintain it in its own name or yours. The carrier may not settle and release the cause of action without the Labor Commission's consent.
• If you recover from a third party, the money is disbursed as follows: reasonable expenses and attorney fees are paid proportionately by the parties; the carrier is reimbursed for compensation payments, less its proportionate share of costs and fees; and the balance goes to you, applied to reduce or satisfy obligations that later accrue against the carrier.
• Fault allocation to the employer. The carrier's reimbursement is not reduced for fault attributed to the employer if the combined fault of immune persons is less than 40% before reallocation; if it is 40% or more, reimbursement is reduced by the payments multiplied by the employer's percentage of fault.

These rules affect what you net, so negotiate settlements with the carrier's reimbursement claim in mind.

Fault can still be assigned to your employer

In your third-party case, the defendants may argue your employer was partly at fault. Under § 34A-2-106(6), apportioning fault to the employer isn't an action at law and doesn't impose liability on the employer or alter the exclusive remedy, but it can reduce what you collect from the defendants. See Utah's Several-Liability Rule.

Common third-party situations

• Auto crashes involving a delivery or work vehicle and another driver. See Hit by a Delivery or Work Vehicle in Utah.
• Defective equipment or tools — product claims against manufacturers. See Utah Product Liability Claims.
• Construction sites with multiple contractors. See Utah Construction Site Injury Claims.
• Premises hazards controlled by a property owner who is not your employer.

Deadlines

A third-party injury claim is generally subject to the ordinary personal injury deadlines (see Utah Personal Injury Statute of Limitations), which are separate from workers' compensation deadlines. Wrongful death claims have a two-year deadline. Government defendants have notice and cap rules; see Utah Governmental Immunity Act Claims.

Frequently asked questions

Can I sue my employer for a work injury in Utah?

Generally no. Workers' compensation is the exclusive remedy against the employer and its officers, agents, and employees.

Can I get workers' comp and sue a third party?

Yes. You may claim compensation and also bring an action for damages against a third party who wrongfully caused the injury.

Does the comp carrier get paid back?

Yes, from the third-party recovery, less its proportionate share of costs and fees, subject to the fault-allocation rule described above.

Do I need to notify anyone before suing a third party?

Yes — written notice to the carrier and any other person obligated for compensation payments.