Compensation instead of action

Compensation replaces any other rights or legal actions that a worker or their dependents might have against an employer or another worker due to an injury that qualifies for compensation under this Act. These other rights and actions are no longer available.

A worker, their dependents, the worker's personal representative, or the employer cannot file a lawsuit against the employer or another worker for an injury unless the injury occurred outside of the normal or incidental operations of the employer's industry. In other words, they cannot sue for injuries that happen during work-related activities.

Compensation claims are not resolved through lawsuits. Instead, they are determined by the commission responsible for overseeing the Worker’s Compensation Act. Legal action cannot be taken to recover compensation; it must be pursued through the commission's process.

Where action is allowed

If a worker sustains an injury during their employment and they or their dependents have the right to take legal action:

• against someone other than their employer or a fellow worker,

• against their employer or a fellow worker if the injury occurred outside of normal work activities,

• when compensation is not permitted under the Worker’s Compensation Act

they can choose to claim compensation or bring a legal action.

The worker must make this choice within 3 months of the injury, and applying for compensation counts as making a valid choice.

Dependents must make their choice within 6 months of the injury, and applying for compensation counts as making a valid choice.

Note: If the worker or dependents choose to bring a legal action, they must promptly notify the commission in writing about their decision.

Worker incapable of making a decision

If the worker is physically or mentally incapacitated and unable to make a choice, and it would cause undue hardship, the commission may provide compensation until the worker can make a choice.

• If the worker chooses not to claim compensation, no further compensation will be paid, and the compensation already paid will have a first claim against any future recovery.

If a person required to make a choice under this section is under 18 years old, their parent or guardian can make the choice on their behalf.

If the worker or dependents bring a legal action or settle out of court, but the recovered amount is less than the compensation they would be entitled to under worker’s compensation, they cannot claim compensation for worker’s compensation.

If the worker or dependents apply to the commission for compensation, it does not restrict or impair their right to take legal action against the responsible party.

• However, the commission becomes entitled to the worker or dependents' rights and may bring legal action in their name for the full or outstanding amount of their claim.

The commission has the sole discretion to decide whether it will take legal action, release its claim for legal action, or reach a compromise. Its decision is final.

If the worker or dependents receive money from a court judgment in a legal action and they owe money to the commission, the judge will order them to pay the owed money to the commission.

Commission decides if action is prohibited:

If a worker or dependents bring an action against an employer or worker regarding an injury, the commission has the authority to decide if the action is prohibited when one of the parties involved applies for such determination.

NFLB Worker’s Compensation Act s. 52, 54