Suing Over a Work Injury in Arkansas

Suing the employer: Arkansas workers' compensation rights are exclusive of all other rights and remedies against the employer and its principals, officers, directors, stockholders, partners and a prime contractor acting as employer. The exception in the statute is an employer that fails to secure payment of compensation as required: the injured employee (or representative in a death case) may then choose to claim compensation or to sue for damages, and the employer may not use the fellow-servant, assumption-of-risk or contributory-negligence defenses.

Suing someone else: a comp claim does not affect the worker's right to sue a third party who caused the injury. The employer or insurer is entitled to reasonable notice and a chance to join the suit; if it joins, it has a first lien on two-thirds of the net proceeds after reasonable collection costs, the worker keeps one-third, and any excess goes to the worker. The employer or insurer may also sue the third party itself after telling the worker in writing that the worker may hire a lawyer, and the worker always gets at least one-third of the net recovery. Settlements need court or Workers' Compensation Commission approval, and no party may settle without giving all interested parties three days' written notice.

Employer without coverage: if an Arkansas employer fails to secure workers' comp as required, the injured employee (or the legal representative if the injury causes death) may either claim compensation under the workers' comp law or sue the employer for damages. In that lawsuit the employee need not prove freedom from contributory negligence, and the employer cannot raise fellow-servant negligence, assumption of risk or the employee's contributory negligence.