Not every work injury is caused by the job itself. A delivery driver gets rear-ended at a red light. A carpenter is hurt when another contractor's scaffold gives way. In Tennessee, Tennessee Code § 50-6-112 covers these cases: when someone other than the employer is legally liable for the injury, the worker can take workers' compensation and can also pursue a claim against that other party.
| Issue | What § 50-6-112 says |
|---|---|
| Can the worker take comp? | Yes, the worker keeps the right to workers' compensation |
| Can the worker sue the outside party? | Yes, by proper action against the other person |
| Worker's lawyer | Reasonable fee, with a first lien against the recovery |
| Employer's interest | Subrogation lien on the recovery; may intervene to enforce it |
| Future comp benefits | Employer gets a credit for the net recovery, even without intervening |
| Deadline | Within one year from the date of injury |
| If the worker does not file | Claim is assigned to the employer, which has six months to sue |
Source: Tennessee Code § 50-6-112.
Two tracks at once
A claim against an outside party turns on that party's legal liability. Section 50-6-112 lets both run: the worker has the right to take compensation, and the worker, or those to whom the worker's right of action survives, may pursue a remedy in court against the other person.
Who gets paid back first
If the worker recovers money from the outside party by judgment, settlement, or otherwise, the statute sets an order:
- The worker's attorney who effected the recovery is entitled to a reasonable fee and has a first lien for it against the recovery. If the employer hired its own lawyer to help, a court can split the fee between the two attorneys in proportion to the work each did.
- The employer, once it has fully or partially paid comp benefits, has a subrogation lien against the recovery and may step into the case to protect and enforce it.
- Future benefits. When the net recovery is more than what the employer has paid so far and the employer has not paid its full maximum liability, the employer gets a credit against future comp liability as it accrues. Even if the employer never intervened, it still gets a credit to the extent of the net recovery.
In practice, that means a worker does not keep both the full comp benefits and the full lawsuit recovery for the same injury. The employer's side, often its workers' comp insurer, is repaid or credited.
The one-year clock
The statute says the action against the other person must be filed in all cases within one year from the date of injury. If the worker does not file in that year, the claim is assigned to the employer, which may sue in its own name or the worker's name for its benefit and has six months after the assignment to do so.
There is one exception for injuries that happen out of state. If the claim arises in another jurisdiction with a longer personal injury or wrongful death limitations period, the court applies whichever period gives the injured worker the most time. The negligent party cannot benefit from these deadline rules.
That one-year third-party deadline sits alongside the separate deadlines inside the comp system itself: Tennessee workers generally have 15 days to report a job injury, and most employers then owe them a choice of three doctors. and Most injured Tennessee workers have one year to file a Petition for Benefit Determination before the claim is barred.
What employers should do
- Report every injury to your carrier quickly, including injuries that look like someone else's fault.
- Save the details: police reports, the other driver's or company's name and insurer, photos, and witness names.
- Talk with your carrier about recovery. Your carrier may want to protect its lien or credit if the worker sues.
- Check your own coverage. Contractors should also understand who covers whom on shared sites: In Tennessee, a business that hires a subcontractor can owe workers' comp to the subcontractor's injured employee. and TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
For benefit amounts, see Tennessee raised its workers’ comp weekly benefit caps for injuries on or after July 1, 2026. Shopping for a policy? Read TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
This article is informational only. It summarizes Tennessee Code § 50-6-112 and is not legal advice. Injured workers and employers with a third-party claim should talk with a Tennessee attorney. It does not promise coverage, eligibility, or any claim result.
Related reading from All Seasons
- Tennessee workers generally have 15 days to report a job injury, and most employers then owe them a choice of three doctors.
- Most injured Tennessee workers have one year to file a Petition for Benefit Determination before the claim is barred.
- In Tennessee, a business that hires a subcontractor can owe workers' comp to the subcontractor's injured employee.
- TDCI’s workers’ comp page says verify coverage online — a certificate may not warn you of cancellation.
- Tennessee raised its workers’ comp weekly benefit caps for injuries on or after July 1, 2026.
- TDCI’s glossary explains the difference between a first-party claim and a third-party claim.
- TDCI explains how Tennessee employers buy workers’ comp and reach the residual market.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Can an injured Tennessee worker get workers' comp and also sue the person who caused the injury?
Tennessee Code 50-6-112 says that when someone other than the employer is legally liable, the worker has the right to take workers' compensation and may also pursue a court action against the other person.
Does the employer get paid back from a third-party recovery?
Once comp benefits have been fully or partially paid, the employer has a subrogation lien against the recovery and may intervene in the case to protect and enforce it.
Who gets paid first from the recovery?
The worker's attorney who effected the recovery is entitled to a reasonable fee and has a first lien for it against the recovery.
What if the employer did not join the lawsuit?
The employer is still entitled to a credit on its future workers' compensation liability, as it accrues, to the extent of the net recovery.
How long does a worker have to sue the third party?
The statute says the action must be instituted in all cases within one year from the date of injury. The statute provides a longer-period exception for certain out-of-state injuries; ask a Tennessee attorney about your deadline.
What happens if the worker misses the one-year deadline?
The claim is assigned to the employer, which may enforce it for its own benefit and has six months after the assignment to commence the suit.
What if the injury happened in another state?
If the other state has a longer personal injury or wrongful death statute of limitations, the court applies the period that gives the injured worker the most time.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
