Workers' Compensation vs. Third-Party Work Injury Claims

 Posted on February 16, 2026 in Workers' Compensation

If you get injured at work in 2026, it’s important to know that workers’ compensation is not always your only option for collecting damages. In some situations, you may also have the option to file a separate lawsuit against a third party who caused your injury.

Understanding the difference between workers' compensation and third-party claims can help you maximize the compensation you receive. If you were injured at work, a Schaumburg work injury attorney can look at your case and explain all your legal options.

What Is Workers' Compensation and What Does It Cover?

Workers' compensation is a no-fault insurance system in Illinois. This means that regardless of whose fault your injury is, you get quick compensation without having to take your employer to court. In exchange, your employer is usually safe from being sued. Under 820 ILCS 305, most employers must carry workers' comp insurance.

Workers' compensation provides a few different benefits:

• Medical expenses related to your injury
• Temporary disability benefits to replace part of your lost wages while you recover
• Permanent partial disability benefits if you have lasting impairment
• Vocational rehabilitation in some cases

However, workers' compensation has major limitations. It only pays about two-thirds of your average weekly wage while you cannot work. It does not pay for pain and suffering, emotional distress, or loss of enjoyment of life. You cannot recover "punitive damages" (extra fines the party at fault must pay as punishment), either.

What Is a Third-Party Work Injury Claim?

A third-party claim is a lawsuit you file against someone other than your employer or coworker who caused your workplace injury. This could be a driver, a property owner, a subcontractor, or a product manufacturer.

Common examples of third-party work injury cases include:

• A delivery driver hit by another vehicle while making deliveries
• A construction worker getting injured when scaffolding collapses due to a subcontractor's negligence
• An office worker who slips on a wet floor mopped by an outside cleaning service
• An employee hurt by defective equipment or machinery

Unlike workers' compensation, a third-party claim requires you to prove the other party was negligent. You must show that their actions directly caused your injuries.

Can I Pursue Both Workers' Compensation and a Third-Party Claim?

Yes. These are two completely separate legal processes, and you can go through both (though you cannot get compensation from both at the end of your legal process). You cannot sue your own employer for negligence because of how workers' compensation is set up. When someone else caused your injury, though, you have the right to pursue full compensation through a lawsuit.

Illinois law allows you two years from the date of your injury to file a personal injury lawsuit in Illinois. This deadline is strict, so it is important to speak with a lawyer as soon as possible.

What Additional Damages Can I Recover in a Third-Party Claim?

A third-party lawsuit allows you to recover the following compensation:

• Full amount of lost wages
• Future lost earning capacity if you cannot return to your previous job
• Pain and suffering
• Emotional distress
• Reduced quality of life

In cases involving serious injuries like amputations, spinal cord damage, or traumatic brain injuries, the difference between the two kinds of compensation can be large. Workers' comp might pay tens of thousands of dollars. A successful third-party claim could result in hundreds of thousands or more.

What Happens to My Workers' Comp Benefits if I Win a Third-Party Case?

If you get money from a third-party lawsuit, your employer or their workers' comp insurance company will have a "subrogation lien" on your settlement. This means that the workers' comp carrier can recover up to 75 percent of what it paid from your third-party payout, while the rest goes to attorneys’ fees and expenses. Your attorney may be able to negotiate to reduce this percentage, which helps you keep more of your settlement.

Call a Des Plaines Third-Party Work Injury Lawyer Today

If you were injured at work and believe a third party may be responsible, call a Schaumburg work injury attorney for help. At Grauer & Kriegel, LLC, we are willing to aggressively fight cases and go to trial when necessary. With decades of experience, we have recovered over $150 million for our clients. Contact Grauer & Kriegel, LLC at 847-240-9010 today to schedule your free consultation.