Guam Workers' Comp vs. Third-Party Lawsuit: Which Gets You More?
· Guam Law · 3 min read
By Morgan D. Ross, Esq. · Reviewed by Robert B. Salgado, Esq.
Workers' comp on Guam pays only 66⅔% of your wages and zero for pain and suffering. If a third party caused your injury, a personal injury lawsuit can recover the full amount — and you can pursue both at the same time.
If you're injured at work on Guam, you have two potential sources of compensation: the workers' compensation system and a personal injury lawsuit against a third party. Understanding the difference — and how to pursue both — can dramatically increase your total recovery.
What Guam Workers' Comp Covers (and What It Doesn't)
Guam's workers' compensation system (12 GCA § 1000 et seq.) provides no-fault benefits to workers injured on the job. You don't have to prove your employer was negligent — just that you were injured at work. Benefits include:
- Medical treatment: All reasonable and necessary medical care
- Temporary disability: 66⅔% of your average weekly wage while you cannot work
- Permanent disability: Scheduled awards for specific injuries
- Vocational rehabilitation: If you cannot return to your previous work
What workers' comp does NOT cover:
- Pain and suffering — zero
- Full wage replacement — only 66⅔%, not 100%
- Emotional distress
- Loss of enjoyment of life
- Punitive damages
What Is a Third-Party Claim?
A third-party claim is a personal injury lawsuit against someone other than your employer who caused or contributed to your workplace injury. Common examples on Guam:
- Construction sites: A subcontractor's negligence causes your injury — you can sue the subcontractor
- Defective equipment: A power tool or machine malfunctions — you can sue the manufacturer
- Delivery drivers: A delivery driver hits you in a parking lot — you can sue the driver and their employer
- Property owners: You're injured on a client's property due to their negligence — you can sue the property owner
- Government entities: A government vehicle or road defect causes your injury — you can sue the Government of Guam (with proper notice)
Pursuing Both Claims Simultaneously
You can pursue workers' comp benefits AND a third-party lawsuit at the same time. There is no requirement to choose one or the other. However, there is an important interaction: the workers' comp insurer has a lien on your third-party recovery.
Here's how it works:
- You receive workers' comp benefits (medical treatment, wage replacement)
- You sue the third party and recover a settlement or verdict
- The workers' comp insurer is reimbursed from your third-party recovery for the benefits they paid
- You keep the remainder — including pain and suffering, full wage replacement, and any amount exceeding the lien
In practice, third-party recoveries almost always exceed the workers' comp lien, leaving the injured worker with significantly more money than workers' comp alone would provide.
Statute of Limitations for Third-Party Claims on Guam
The statute of limitations for a third-party personal injury lawsuit on Guam is 2 years from the date of injury (7 GCA § 11306(a)). This is separate from the workers' comp filing deadline. Don't assume that filing a workers' comp claim extends your time to file a third-party lawsuit — it doesn't.
Frequently Asked Questions
My employer says I can only get workers' comp. Is that true?
Workers' comp is your exclusive remedy against your employer — but not against third parties. If anyone other than your employer contributed to your injury, you can pursue a third-party lawsuit. Many employers don't mention this because it's not in their interest. Consult an attorney to identify all potential third-party defendants.
What if I'm covered by the Defense Base Act instead of Guam workers' comp?
The same principle applies. DBA benefits are your exclusive remedy against your employer, but you can still pursue third-party claims against non-employer parties who caused your injury. The DBA insurer also has a lien on third-party recoveries.
How much more can I recover with a third-party lawsuit vs. workers' comp alone?
It depends on the facts, but third-party recoveries often exceed workers' comp benefits by 3–10x, primarily because they include pain and suffering (which workers' comp doesn't cover) and full wage replacement (not just 66⅔%). For serious injuries, the difference can be hundreds of thousands of dollars.
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