{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/65.2-309.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/65.2-309.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/65.2-309.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/65.2-309.html"}],"law_id":86684,"edition_id":1,"section_id":86684,"structure_id":14058,"section_number":"65.2-309","catch_line":"Lien against settlement proceeds or verdict in third party suit; subrogation of employer to employee’s rights against third parties; evidence; recovery; compromise","history":"Code 1950, \u00a7 65-38; 1960, c. 89; 1968, c. 660, \u00a7 65.1-41; 1991, c. 355; 2004, cc. 914, 941; 2017, cc. 81, 288.","full_text":"A\n\nA claim against an employer under this title for injury, occupational disease, or death benefits shall create a lien on behalf of the employer against any verdict or settlement arising from any right to recover damages which the injured employee, his personal representative or other person may have against any other party for such injury, occupational disease, or death, and such employer also shall be subrogated to any such right and may enforce, in his own name or in the name of the injured employee or his personal representative, the legal liability of such other party. The amount of compensation paid by the employer or the amount of compensation to which the injured employee or his dependents are entitled shall not be admissible as evidence in any action brought to recover damages.B\n\nAny amount collected by the employer under the provisions of this section in excess of the amount paid by the employer or for which he is liable shall be held by the employer for the benefit of the injured employee, his personal representative, or other person entitled thereto, less a proportionate share of such amounts as are paid by the employer for reasonable expenses and attorney’s fees as provided in § 65.2-311.C\n\nNo compromise settlement shall be made by the employer in the exercise of such right of subrogation without the approval of the Commission and the injured employee or the personal representative or dependents of the deceased employee being first obtained.D\n\nIf an injured employee, his personal representative, or a person acting on behalf of the injured employee receives the proceeds of the settlement or verdict and the employer’s lien pursuant to subsection A has not been satisfied, the employer shall have the right to recover its lien either as a credit against future benefits or through a civil action against the person who received the proceeds.E\n\nAny arbitration held by the employer in the exercise of such right of subrogation (i) shall be limited solely to arbitrating the amount and validity of the employer’s lien, (ii) shall not affect the employee’s rights in any way, and (iii) shall not be held unless:1\n\nPrior to the commencement of such arbitration the employer has provided the injured employee and his attorney, if any, with an itemization of the expenses associated with the lien that is the subject of the arbitration;2\n\nUpon receipt of the itemization of the lien, the employee shall have 21 days to provide a written objection to any expenses included in the lien to the employer, and if the employee does not do so any objections to the lien to be arbitrated shall be deemed waived;3\n\nThe employer shall have 14 days after receipt of the written objection to notify the employee of any contested expenses that the employer does not agree to remove from the lien, and if the employer does not do so any itemized expense objected to by the employee shall be deemed withdrawn and not included in the arbitration; and4\n\nAny contested expenses remaining shall have been submitted to the Commission for a determination of their validity and the Commission has made such determination of validity prior to the commencement of the arbitration.","order_by":null,"text":{"0":{"id":310438,"text":"A claim against an employer under this title for injury, occupational disease, or death benefits shall create a lien on behalf of the employer against any verdict or settlement arising from any right to recover damages which the injured employee, his personal representative or other person may have against any other party for such injury, occupational disease, or death, and such employer also shall be subrogated to any such right and may enforce, in his own name or in the name of the injured employee or his personal representative, the legal liability of such other party. The amount of compensation paid by the employer or the amount of compensation to which the injured employee or his dependents are entitled shall not be admissible as evidence in any action brought to recover damages.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":310439,"text":"Any amount collected by the employer under the provisions of this section in excess of the amount paid by the employer or for which he is liable shall be held by the employer for the benefit of the injured employee, his personal representative, or other person entitled thereto, less a proportionate share of such amounts as are paid by the employer for reasonable expenses and attorney’s fees as provided in § 65.2-311.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":310440,"text":"No compromise settlement shall be made by the employer in the exercise of such right of subrogation without the approval of the Commission and the injured employee or the personal representative or dependents of the deceased employee being first obtained.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":310441,"text":"If an injured employee, his personal representative, or a person acting on behalf of the injured employee receives the proceeds of the settlement or verdict and the employer’s lien pursuant to subsection A has not been satisfied, the employer shall have the right to recover its lien either as a credit against future benefits or through a civil action against the person who received the proceeds.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":310442,"text":"Any arbitration held by the employer in the exercise of such right of subrogation (i) shall be limited solely to arbitrating the amount and validity of the employer’s lien, (ii) shall not affect the employee’s rights in any way, and (iii) shall not be held unless:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"5":{"id":310443,"text":"Prior to the commencement of such arbitration the employer has provided the injured employee and his attorney, if any, with an itemization of the expenses associated with the lien that is the subject of the arbitration;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"6":{"id":310444,"text":"Upon receipt of the itemization of the lien, the employee shall have 21 days to provide a written objection to any expenses included in the lien to the employer, and if the employee does not do so any objections to the lien to be arbitrated shall be deemed waived;","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"7":{"id":310445,"text":"The employer shall have 14 days after receipt of the written objection to notify the employee of any contested expenses that the employer does not agree to remove from the lien, and if the employer does not do so any itemized expense objected to by the employee shall be deemed withdrawn and not included in the arbitration; and","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"8":{"id":310446,"text":"Any contested expenses remaining shall have been submitted to the Commission for a determination of their validity and the Commission has made such determination of validity prior to the commencement of the arbitration.","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3"}},"ancestry":[{"id":14058,"edition_id":1,"name":"Application and Effect of Title","identifier":"3","label":"chapter","depth":2,"order_by":1,"parent_id":13199,"metadata":{},"date_created":"2026-06-26 03:46:44","date_modified":"2026-06-26 03:46:44","permalink":{"id":276285,"object_type":"structure","relational_id":14058,"identifier":"3","token":"65.2\/3","url":"\/65.2\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13199,"edition_id":1,"name":"Workers' Compensation","identifier":"65.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:26","date_modified":"2026-06-26 03:44:26","permalink":{"id":276115,"object_type":"structure","relational_id":13199,"identifier":"65.2","token":"65.2","url":"\/65.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66375,"structure_id":14058,"section_number":"65.2-300","catch_line":"Presumption of acceptance of provisions of title; exemptions; notice and rejection","url":"\/65.2-300\/","token":"65.2\/3\/65.2-300","metadata":false},{"id":67062,"structure_id":14058,"section_number":"65.2-301","catch_line":"Victims of sexual assault","url":"\/65.2-301\/","token":"65.2\/3\/65.2-301","metadata":false},{"id":73641,"structure_id":14058,"section_number":"65.2-301.1","catch_line":"Public safety officers","url":"\/65.2-301.1\/","token":"65.2\/3\/65.2-301.1","metadata":false},{"id":67137,"structure_id":14058,"section_number":"65.2-301.2","catch_line":"Employee classification; disaster; personal protective equipment not considered","url":"\/65.2-301.2\/","token":"65.2\/3\/65.2-301.2","metadata":false},{"id":77702,"structure_id":14058,"section_number":"65.2-302","catch_line":"Statutory employer","url":"\/65.2-302\/","token":"65.2\/3\/65.2-302","metadata":false},{"id":65088,"structure_id":14058,"section_number":"65.2-303","catch_line":"Recovery from subcontractor; proceedings against owner or contractor","url":"\/65.2-303\/","token":"65.2\/3\/65.2-303","metadata":false},{"id":80625,"structure_id":14058,"section_number":"65.2-304","catch_line":"Indemnity of principal from subcontractor","url":"\/65.2-304\/","token":"65.2\/3\/65.2-304","metadata":false},{"id":77522,"structure_id":14058,"section_number":"65.2-305","catch_line":"Voluntary subjection to provisions of title; effect of taking out insurance or qualifying as self-insurer","url":"\/65.2-305\/","token":"65.2\/3\/65.2-305","metadata":false},{"id":80715,"structure_id":14058,"section_number":"65.2-306","catch_line":"When compensation not allowed for injury or death; burden of proof","url":"\/65.2-306\/","token":"65.2\/3\/65.2-306","metadata":false},{"id":55160,"structure_id":14058,"section_number":"65.2-307","catch_line":"Employee's rights under Act exclude all others; exception","url":"\/65.2-307\/","token":"65.2\/3\/65.2-307","metadata":false},{"id":73961,"structure_id":14058,"section_number":"65.2-308","catch_line":"Discharge of employee for exercising rights prohibited; civil action; relief","url":"\/65.2-308\/","token":"65.2\/3\/65.2-308","metadata":false},{"id":86684,"structure_id":14058,"section_number":"65.2-309","catch_line":"Lien against settlement proceeds or verdict in third party suit; subrogation of employer to employee's rights against third parties; evidence; recovery; compromise","url":"\/65.2-309\/","token":"65.2\/3\/65.2-309","metadata":false},{"id":80132,"structure_id":14058,"section_number":"65.2-309.1","catch_line":"Creation of lien and subrogation of employer to employee's rights to recover uninsured or underinsured motorist benefits pursuant to insurance coverage carried by and at the expense of employer","url":"\/65.2-309.1\/","token":"65.2\/3\/65.2-309.1","metadata":false},{"id":80584,"structure_id":14058,"section_number":"65.2-310","catch_line":"Protection of employer when employee sues third party","url":"\/65.2-310\/","token":"65.2\/3\/65.2-310","metadata":false},{"id":84625,"structure_id":14058,"section_number":"65.2-311","catch_line":"Expenses and attorney's fees in action under \u00a7 65.2-309 or \u00a7 65.2-310","url":"\/65.2-311\/","token":"65.2\/3\/65.2-311","metadata":false},{"id":55604,"structure_id":14058,"section_number":"65.2-312","catch_line":"False statements, representations, etc., in connection with an award; penalties","url":"\/65.2-312\/","token":"65.2\/3\/65.2-312","metadata":false},{"id":66572,"structure_id":14058,"section_number":"65.2-313","catch_line":"Method of determining employer's offset in event of recovery under \u00a7 65.2-309 or \u00a7 65.2-310","url":"\/65.2-313\/","token":"65.2\/3\/65.2-313","metadata":false}],"previous_section":{"id":73961,"structure_id":14058,"section_number":"65.2-308","catch_line":"Discharge of employee for exercising rights prohibited; civil action; relief","url":"\/65.2-308\/","token":"65.2\/3\/65.2-308","metadata":false},"next_section":{"id":80132,"structure_id":14058,"section_number":"65.2-309.1","catch_line":"Creation of lien and subrogation of employer to employee's rights to recover uninsured or underinsured motorist benefits pursuant to insurance coverage carried by and at the expense of employer","url":"\/65.2-309.1\/","token":"65.2\/3\/65.2-309.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/65.2-309\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1960, chapter 89; in 1968, chapter 660; in 1991, chapter 355; in 2004, chapters 914<\/a> and 941<\/a>; in 2017, chapters 81<\/a> and 288<\/a>.<\/p>","references":[{"id":80132,"section_number":"65.2-309.1","catch_line":"Creation of lien and subrogation of employer to employee's rights to recover uninsured or underinsured motorist benefits pursuant to insurance coverage carried by and at the expense of employer","order_by":null,"url":"\/65.2-309.1\/"},{"id":84625,"section_number":"65.2-311","catch_line":"Expenses and attorney's fees in action under \u00a7 65.2-309 or \u00a7 65.2-310","order_by":null,"url":"\/65.2-311\/"},{"id":66572,"section_number":"65.2-313","catch_line":"Method of determining employer's offset in event of recovery under \u00a7 65.2-309 or \u00a7 65.2-310","order_by":null,"url":"\/65.2-313\/"},{"id":68174,"section_number":"65.2-800","catch_line":"Duty to insure payment of compensation; effect of insurance","order_by":null,"url":"\/65.2-800\/"},{"id":86882,"section_number":"8.01-424.1","catch_line":"Settlement of third-party action; deemed consent by employer","order_by":null,"url":"\/8.01-424.1\/"}],"refers_to":false,"permalink":{"id":276331,"object_type":"law","relational_id":86684,"identifier":"65.2-309","token":"65.2\/3\/65.2-309","url":"\/65.2-309\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/65.2-309\/","token":"65.2\/3\/65.2-309","dublin_core":{"Title":"Lien against settlement proceeds or verdict in third party suit; subrogation of employer to employee’s rights against third parties; evidence; recovery; compromise","Type":"Text","Format":"text\/html","Identifier":"\u00a7 65.2-309","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A claim against an employer<\/span> under this title for injury<\/span>, occupational disease, or death benefits shall create a lien<\/span> on behalf of the employer<\/span> against any verdict<\/span> or settlement<\/span> arising from any right to recover damages<\/span> which the injured employee, his personal representative or other person may have against any other party<\/span> for such injury<\/span>, occupational disease, or death, and such employer<\/span> also shall be subrogated to any such right and may enforce, in his own name or in the name of the injured employee or his personal representative, the legal liability of such other party<\/span>. The amount of compensation paid by the employer<\/span> or the amount of compensation to which the injured employee or his dependents are entitled shall not be admissible<\/span> as evidence<\/span> in any action brought to recover damages<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any amount collected by the employer<\/span> under the provisions of this section in excess of the amount paid by the employer<\/span> or for which he is liable shall be held by the employer<\/span> for the benefit of the injured employee, his personal representative, or other person entitled thereto, less a proportionate share of such amounts as are paid by the employer<\/span> for reasonable expenses and attorney’s fees as provided in § 65.2-311<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> No compromise settlement<\/span> shall be made by the employer<\/span> in the exercise of such right of subrogation without the approval of the Commission<\/span> and the injured employee or the personal representative or dependents of the deceased employee being first obtained. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If an injured employee, his personal representative, or a person acting on behalf of the injured employee receives the proceeds of the settlement<\/span> or verdict<\/span> and the employer<\/span>’s lien<\/span> pursuant to subsection A has not been satisfied, the employer<\/span> shall have the right to recover its lien<\/span> either as a credit against future benefits or through a civil action<\/span> against the person who received the proceeds. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any arbitration held by the employer<\/span> in the exercise of such right of subrogation (i) shall be limited solely to arbitrating the amount and validity of the employer<\/span>’s lien<\/span>, (ii) shall not affect the employee’s rights in any way, and (iii) shall not be held unless: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Prior to the commencement of such arbitration the employer<\/span> has provided the injured employee and his attorney, if any, with an itemization of the expenses associated with the lien<\/span> that is the subject of the arbitration; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Upon receipt of the itemization of the lien<\/span>, the employee shall have 21 days to provide a written objection to any expenses included in the lien<\/span> to the employer<\/span>, and if the employee does not do so any objections to the lien<\/span> to be arbitrated shall be deemed waived; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The employer<\/span> shall have 14 days after receipt of the written objection to notify the employee of any contested expenses that the employer<\/span> does not agree to remove from the lien<\/span>, and if the employer<\/span> does not do so any itemized expense objected to by the employee shall be deemed withdrawn and not included in the arbitration; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any contested expenses remaining shall have been submitted to the Commission<\/span> for a determination of their validity and the Commission<\/span> has made such determination of validity prior to the commencement of the arbitration. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIEN AGAINST SETTLEMENT PROCEEDS OR VERDICT IN THIRD PARTY SUIT; SUBROGATION OF\nEMPLOYER TO EMPLOYEE’S RIGHTS AGAINST THIRD PARTIES; EVIDENCE; RECOVERY;\nCOMPROMISE (\u00a7 65.2-309)\n\nA. A claim against an employer under this title for injury, occupational\ndisease, or death benefits shall create a lien on behalf of the employer against\nany verdict or settlement arising from any right to recover damages which the\ninjured employee, his personal representative or other person may have against\nany other party for such injury, occupational disease, or death, and such\nemployer also shall be subrogated to any such right and may enforce, in his own\nname or in the name of the injured employee or his personal representative, the\nlegal liability of such other party. The amount of compensation paid by the\nemployer or the amount of compensation to which the injured employee or his\ndependents are entitled shall not be admissible as evidence in any action\nbrought to recover damages.\n\nB. Any amount collected by the employer under the provisions of this section in\nexcess of the amount paid by the employer or for which he is liable shall be\nheld by the employer for the benefit of the injured employee, his personal\nrepresentative, or other person entitled thereto, less a proportionate share of\nsuch amounts as are paid by the employer for reasonable expenses and\nattorney’s fees as provided in § 65.2-311.\n\nC. No compromise settlement shall be made by the employer in the exercise of\nsuch right of subrogation without the approval of the Commission and the injured\nemployee or the personal representative or dependents of the deceased employee\nbeing first obtained.\n\nD. If an injured employee, his personal representative, or a person acting on\nbehalf of the injured employee receives the proceeds of the settlement or\nverdict and the employer’s lien pursuant to subsection A has not been\nsatisfied, the employer shall have the right to recover its lien either as a\ncredit against future benefits or through a civil action against the person who\nreceived the proceeds.\n\nE. Any arbitration held by the employer in the exercise of such right of\nsubrogation (i) shall be limited solely to arbitrating the amount and validity\nof the employer’s lien, (ii) shall not affect the employee’s rights\nin any way, and (iii) shall not be held unless:\n\n 1. Prior to the commencement of such arbitration the employer has provided the\n injured employee and his attorney, if any, with an itemization of the expenses\n associated with the lien that is the subject of the arbitration;\n\n 2. Upon receipt of the itemization of the lien, the employee shall have 21\n days to provide a written objection to any expenses included in the lien to\n the employer, and if the employee does not do so any objections to the lien to\n be arbitrated shall be deemed waived;\n\n 3. The employer shall have 14 days after receipt of the written objection to\n notify the employee of any contested expenses that the employer does not agree\n to remove from the lien, and if the employer does not do so any itemized\n expense objected to by the employee shall be deemed withdrawn and not included\n in the arbitration; and\n\n 4. Any contested expenses remaining shall have been submitted to the\n Commission for a determination of their validity and the Commission has made\n such determination of validity prior to the commencement of the arbitration.\n\nHISTORY: Code 1950, \u00a7 65-38; 1960, c. 89; 1968, c. 660, \u00a7 65.1-41; 1991, c.\n355; 2004, cc. 914, 941; 2017, cc. 81, 288.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}