Labor & Employment (Workers' Compensation)

HB 7773 modifies how workers' compensation reimbursement works when an injured employee recovers damages from a third party (like another company or individual responsible for the injury). It requires employees to reimburse employers or insurers for workers' comp payments received, but excludes reimbursement for pain and suffering, loss of consortium, or other non-compensable damages. If third-party recovery exceeds compensation paid, benefits may be suspended for a period calculated by dividing the excess by the employee’s weekly rate, though medical benefits continue. The bill also sets a 2-year and 8-month deadline for employees to sue third parties, after which employers can pursue claims and seek reimbursement.