Can You Sue After a Workers' Comp Settlement in Maryland?

Maryland's Exclusive Remedy Rule After Settlement

In Maryland, accepting workers' compensation benefits generally means you cannot sue your employer for workplace injuries. This is the exclusive remedy rule. Once a settlement is finalized and the agreement is approved by the Workers' Compensation Commission, the case is typically closed. You trade the right to sue for guaranteed medical and indemnity benefits. The Maryland Court of Appeals has consistently upheld this bar, meaning the employer is shielded from additional negligence claims related to the same injury.

When a Third-Party Lawsuit Is Still Possible

The exclusive remedy rule does not protect everyone else. If a party other than your employer or a co-worker caused the injury, you can usually sue that third party. Common examples include equipment manufacturers, property owners, or general contractors on multi-employer sites. A settlement of your workers' comp claim does not extinguish this right. You can pursue a separate civil action against the third party while the workers' comp case remains open or after it settles.

The Subrogation Lien

Maryland law gives the workers' comp insurer a lien on any third-party recovery. If you win a lawsuit against the third party, the insurer is entitled to be reimbursed for the benefits they paid. This is called subrogation. Negotiating this lien is often a critical part of any settlement strategy. A judge must approve the lien resolution, and it is not automatic that the insurer gets full repayment if the third-party recovery is partial or delayed.

Exceptions to the Bar Against Suing the Employer

A few narrow exceptions exist where an employee might still sue the employer after a workers' comp settlement:

• The employer intentionally caused the injury.
• The employer failed to carry required workers' compensation insurance.
• The injury was caused by a substance the employer intentionally supplied.

These exceptions are difficult to prove and require clear evidence of willful misconduct or criminal conduct. Simply showing negligence or a safety violation is not enough to overcome the exclusive remedy bar in Maryland.

What Happens If You Settle and Then Discover Worse Injuries

A settlement in Maryland usually includes a release of all claims against the employer and its insurance carrier. If you settle a claim for a specific injury and later discover additional medical problems stemming from the same accident, the release generally prevents you from going back to the Commission for more benefits. This is why medical prognosis and future treatment costs must be carefully evaluated before signing a compromise and release agreement. In rare cases, a petition to reopen may be filed if there is clear evidence of fraud or a clerical error, but the standard is high.

Key Takeaways for Maryland Injured Workers

Consulting a Maryland attorney familiar with the Workers' Compensation Commission is essential before signing any release. The interplay between a workers' comp settlement and potential third-party claims is highly fact-specific, and a single mistake can forfeit significant rights.