In a scenario where an ER and EE file third-party actions and obtain a recovery, who has the first right of recovery?

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Multiple Choice

In a scenario where an ER and EE file third-party actions and obtain a recovery, who has the first right of recovery?

Explanation:
In California workers’ compensation subrogation, the employee has the first right to recover from a third party whose actions caused the injury. When a third-party recovery is obtained, that money is applied first to reimburse the employer for the workers’ compensation benefits paid on behalf of the employee. Only after the employer is reimbursed does any remaining proceeds belong to the employee. This arrangement protects the employee’s opportunity to be fully compensated for the injury while giving the employer a right to recover its costs through the third-party proceeds.

In California workers’ compensation subrogation, the employee has the first right to recover from a third party whose actions caused the injury. When a third-party recovery is obtained, that money is applied first to reimburse the employer for the workers’ compensation benefits paid on behalf of the employee. Only after the employer is reimbursed does any remaining proceeds belong to the employee. This arrangement protects the employee’s opportunity to be fully compensated for the injury while giving the employer a right to recover its costs through the third-party proceeds.

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