The Compensation Bargain

Workers compensation laws and programs are designed to give individuals who are injured on the job fixed monetary compensation to cover their injuries. In exchange for the security of the workers compensation program, a person gives up a right to litigation.

The exchange of the right for litigation for guaranteed compensation for injuries (workers compensation) is called the compensation bargain. It is called a bargain because there is an exchange of items that a worker is aware of. Someone negotiated for the rights that are given to a person in exchange for his or her rights to litigate.

While the payments made under workers compensation are frequently not as great as those that could be achieved through litigation, they are guaranteed. There is no chance that the jury will side with the employer or that the information presented will be dismissed by a judge on a motion for summary judgment.

The compensation bargain is also called “exclusive remedy.” Not only do the workers give up their right to sue but an employer gives up the right to reduce the amount of compensation awarded to an employee when the injury is partly the employee’s fault.

The employer is sometimes able to convince a jury that the employee should be less compensated for his or her injuries because the employee did something that helped to cause the injury in the first place. Through the compensation bargain, the employee lessens the risk that his or her compensation will be reduced due to fault.

Contact a Philadelphia Personal Injury Lawyer

If you have been injured on the job and denied workers compensation by your employer, contact the Philadelphia workers compensation lawyers of Lowenthal & Abrams at 215-238-1130.