How Workers’ Compensation and a Third-Party Claim Work Together After an Oilfield Injury
October 30, 2026 | Article by Chain | Cohn | Clark staff Social Share
If you were hurt on a Kern County drilling rig, you can receive workers’ compensation from your employer and pursue a third-party oilfield injury claim against another company responsible for the accident at the same time. Workers’ compensation pays for medical care and part of your lost wages regardless of fault, while a third-party claim can recover losses workers’ compensation does not cover, including pain and suffering.
The two claims are linked, because your employer can seek reimbursement from a third-party recovery and, in most cases, take a credit against your future benefits. For a serious head or spinal injury, those rules shape what a settlement needs to cover. An experienced oilfield injury attorney can help you understand your options.
Two Claims for One Oilfield Injury
Your employer’s workers’ compensation insurance usually pays for medical treatment, temporary disability benefits while you are unable to work, and permanent disability benefits if the injury leaves lasting limitations. You do not have to prove your employer did anything wrong to receive those benefits. In exchange, workers’ compensation is generally the only remedy available against the employer itself. California’s guidebook for injured workers explains each benefit in more detail.
A third-party claim is a civil case against a company (other than your employer) whose negligence or defective product caused or was responsible for your injury in some way. This type of case can recover losses that workers’ compensation does not, including pain and suffering, full lost earnings, and reduced future earning capacity. You can pursue both claims for the same injury at the same time.
Who Counts as a Third Party on a Drilling Rig?
Depending on how the site is organized, a third party may refer to many different entities. A few examples include the operator running the well site, another contractor whose crew caused the accident, a company that supplied or maintained equipment on the rig, or the manufacturer of a defective component such as rigging, a pipe-handling tool, or fall protection equipment.
California limits when a company that hires your employer can be held responsible for your injury. A claim against an operator usually depends on whether the operator controlled the work in a way that contributed to the accident or knew about a hidden hazard your employer could not have discovered. Our drilling rig head and spinal injury page covers the accident causes seen most often on Kern County rigs.
The Employer’s Lien on a Third-Party Recovery
Your employer, or its workers’ compensation insurer, typically has the right to be repaid from a third-party recovery for the benefits it has already paid. It can file its own lawsuit against the third party or join yours, and it will typically assert a lien against any settlement or judgment.
A judgment cannot be satisfied without giving the employer notice and a reasonable opportunity to secure its lien, so the lien has to be resolved as part of any settlement. Litigation expenses and attorney fees are paid first, and the lien amount itself can be negotiated as the case resolves. An attorney can review your circumstances and determine how this may affect you.
How a Settlement Affects Future Workers’ Compensation Benefits
The lien covers what your employer has already paid. The future credit covers what it would owe going forward. In most cases, once the lien is paid, the employer can claim a credit equal to your net recovery, which is the amount left after litigation expenses and attorney fees. The employer can then stop paying further workers’ compensation benefits until that credit has been used up.
For a spinal cord injury or traumatic brain injury, that rule can be especially important. Future medical care, attendant care, home modifications, and lost earning capacity can extend for decades, and the credit means part of a settlement may end up paying for care workers’ compensation would otherwise have covered. A settlement built on the full projected cost of future care, often documented in a life care plan, is meant to account for that. An attorney can help you understand this process and how it may affect any claims you may pursue.
When the Employer Shares Fault for the Injury
If your employer’s own negligence contributed to the accident, its rights against your third-party recovery become much more narrow. An employer can receive reimbursement or a credit only to the extent its workers’ compensation liability exceeds its share of responsibility for your total damages. When employer fault is raised, the comparative fault of the employer, the third party, and anyone else involved becomes part of the analysis.
On a drilling rig, employer fault can involve missing fall protection, skipped equipment inspections, or inadequate training for the task. Identifying this early on affects how much of a third-party recovery you may be able to keep.
Frequently Asked Questions About Third-Party Oilfield Injury Claims
Can I file a workers’ compensation claim and a third-party claim at the same time?
Yes. California allows an injured worker to pursue workers’ compensation benefits from their employer and a civil claim against a third party for the same injury at the same time. Workers’ compensation benefits can begin while the third-party case develops, which often takes longer to resolve.
Will a third-party settlement end my workers’ compensation benefits?
A settlement can potentially suspend some or all future benefits for a period. In most cases, the employer can claim a credit against future benefits equal to your net recovery and stop paying further benefits until that credit has been used up, after which its obligation resumes. For lifelong injuries, this is a central reason the full cost of future care needs to be built into any settlement.
What if my employer was partly at fault for my injury?
In most cases, workers’ compensation remains your only remedy against the employer itself. Employer fault does reduce the employer’s rights against your third-party recovery, because it can recover a lien or credit only to the extent its workers’ compensation liability exceeds its share of responsibility for your damages.
Is there a deadline to file a third-party claim?
In California, most personal injury claims must be filed within two years of the injury, and claims against a government entity require a written claim within six months. Workers’ compensation has its own deadlines, starting with reporting the injury to your employer within 30 days. An attorney can help identify which deadline applies to your claim.
Speak to an Oilfield Injury Attorney Today
Chain | Cohn | Clark handles both workers’ compensation and third-party claims for injured oilfield workers across Kern County. Contact our Kern County oilfield injury attorneys today to schedule a free consultation.
