What is a workers' compensation lien?

A workers’ compensation lien is a legal term used in the state of Virginia. It is a claim on a worker’s wages or other assets that is put in place by a workers’ compensation insurer to ensure that any medical expenses accrued as a result of an injury on the job are paid. In other words, it is a form of security that protects the insurer from not being reimbursed for the cost of medical care. The workers’ compensation insurer has the right to file a lien against an injured worker’s wages, property, bank accounts, or other assets. In short, the lien is essentially a guarantee that the money that the insurer has spent on medical bills for the employee will be repaid. If the insurer has not been reimbursed for the medical bills after a period of time, they can take legal action to collect the funds by filing a lien. The lien can be enforced by suing the injured employee in a court of law and asking for the money that is owed. Under Virginia’s workers’ compensation laws, an employer is responsible for reimbursing the insurer for medical costs incurred as a result of an injury on the job. If an employer fails to pay, the lien may be enforced to secure the insurer’s payment. It is important to note that the lien is subordinate to any court-ordered child support payments.

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What is a workers' compensation lien?

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