How Employees Avoid Workers' Compensation Laws Workers' compensation benefits usually are the exclusive remedy of injured employees against their employer. A third party such as a property owner, a manufacturer of machinery, or a subcontractor that is liable for the employee's injuries can be sued. That third party in turn can sue the employer for contribution or indemnification. New York limits the third-party liability of employers to cases involving grave injuries. If an employer doesn't have workers' compensation insurance coverage, injured employees may bring a civil suit against the employer.
Some states permit both a civil suit and a compensation claim.
No employer-employee relationship. One must be in the service of an employer under an appointment or contract of hire or an apprenticeship express or implied, oral or written. If the services are voluntary, there may be no employer-employee relationship. Similarly, the required relationship does not exist if the injured person is employed as or by an independent contractor. Certain employees are not covered by the state workers' compensation legislation.