Alaska Statutes
Alaska Stat. § 23.30.015 (2026)
Compensation where third persons are liable
✓ current as of July 2026
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Sec. 23.30.015. Compensation where third persons are liable.
(a) If on account of disability or death for which compensation is payable under this chapter the person entitled to the compensation believes that a third person other than the employer or a fellow employee is liable for damages, the person need not elect whether to receive compensation or to recover damages from the third person.
(b) Acceptance of compensation under an award in a compensation order filed by the board operates as an assignment to the employer of all rights of the person entitled to compensation and the personal representative of a deceased employee to recover damages from the third person unless the person or representative entitled to compensation commences an action against the third person within one year after an award.
(c) Payment of compensation into the second-injury fund as a result of death operates as an assignment to the employer of all rights of the representative of the deceased to recover damages from the third person.
(d) An employer under an assignment may either institute proceedings for the recovery of damages or may compromise with a third person, either without or after instituting an action.
(e) An amount recovered by the employer under an assignment, whether by action or compromise, shall be distributed as follows:
(1) the employer shall retain an amount equal to
(A) the expenses incurred by the employer with respect to the action or compromise, including a reasonable attorney fee determined by the board;
(B) the cost of all benefits actually furnished by the employer under this chapter;
(C) all amounts paid as compensation and second-injury fund payments, and if the employer is self-insured or uninsured, all service fees paid under AS 23.05.067;
(D) the present value of all amounts payable later as compensation, computed from a schedule prepared by the board, and the present value of the cost of all benefits to be furnished later under AS 23.30.095 as estimated by the board; the amounts so computed and estimated shall be retained by the employer as a trust fund to pay compensation and the cost of benefits as they become due and to pay any finally remaining excess sum to the person entitled to compensation or to the representative; and
(2) the employer shall pay any excess to the person entitled to compensation or to the representative of that person.
(f) Even if an employee, the employee's representative, or the employer brings an action or settles a claim against the third person, the employer shall pay the benefits and compensation required by this chapter.
(g) If the employee or the employee's representative recovers damages from the third person, the employee or representative shall promptly pay to the employer the total amounts paid by the employer under (e)(1)(A) — (C) of this section insofar as the recovery is sufficient after deducting all litigation costs and expenses. Any excess recovery by the employee or representative shall be credited against any amount payable by the employer thereafter. If the employer is allocated a percentage of fault under AS 09.17.080, the amount due the employer under this subsection shall be reduced by an amount equal to the employer's equitable share of damages assessed under AS 09.17.080(c).
(h) If compromise with a third person is made by the person entitled to compensation or the representative of that person of an amount less than the compensation to which the person or representative would be entitled, the employer is liable for compensation stated in (f) of this section only if the compromise is made with the employer's written approval.
(i) If the employer is insured and the carrier has assumed the payment of compensation, the carrier shall be subrogated to all the rights of the employer.
(j) Notice of the commencement of an action against a third party shall be given to the division and to all interested parties within 30 days.
(a) If on account of disability or death for which compensation is payable under this chapter the person entitled to the compensation believes that a third person other than the employer or a fellow employee is liable for damages, the person need not elect whether to receive compensation or to recover damages from the third person.
(b) Acceptance of compensation under an award in a compensation order filed by the board operates as an assignment to the employer of all rights of the person entitled to compensation and the personal representative of a deceased employee to recover damages from the third person unless the person or representative entitled to compensation commences an action against the third person within one year after an award.
(c) Payment of compensation into the second-injury fund as a result of death operates as an assignment to the employer of all rights of the representative of the deceased to recover damages from the third person.
(d) An employer under an assignment may either institute proceedings for the recovery of damages or may compromise with a third person, either without or after instituting an action.
(e) An amount recovered by the employer under an assignment, whether by action or compromise, shall be distributed as follows:
(1) the employer shall retain an amount equal to
(A) the expenses incurred by the employer with respect to the action or compromise, including a reasonable attorney fee determined by the board;
(B) the cost of all benefits actually furnished by the employer under this chapter;
(C) all amounts paid as compensation and second-injury fund payments, and if the employer is self-insured or uninsured, all service fees paid under AS 23.05.067;
(D) the present value of all amounts payable later as compensation, computed from a schedule prepared by the board, and the present value of the cost of all benefits to be furnished later under AS 23.30.095 as estimated by the board; the amounts so computed and estimated shall be retained by the employer as a trust fund to pay compensation and the cost of benefits as they become due and to pay any finally remaining excess sum to the person entitled to compensation or to the representative; and
(2) the employer shall pay any excess to the person entitled to compensation or to the representative of that person.
(f) Even if an employee, the employee's representative, or the employer brings an action or settles a claim against the third person, the employer shall pay the benefits and compensation required by this chapter.
(g) If the employee or the employee's representative recovers damages from the third person, the employee or representative shall promptly pay to the employer the total amounts paid by the employer under (e)(1)(A) — (C) of this section insofar as the recovery is sufficient after deducting all litigation costs and expenses. Any excess recovery by the employee or representative shall be credited against any amount payable by the employer thereafter. If the employer is allocated a percentage of fault under AS 09.17.080, the amount due the employer under this subsection shall be reduced by an amount equal to the employer's equitable share of damages assessed under AS 09.17.080(c).
(h) If compromise with a third person is made by the person entitled to compensation or the representative of that person of an amount less than the compensation to which the person or representative would be entitled, the employer is liable for compensation stated in (f) of this section only if the compromise is made with the employer's written approval.
(i) If the employer is insured and the carrier has assumed the payment of compensation, the carrier shall be subrogated to all the rights of the employer.
(j) Notice of the commencement of an action against a third party shall be given to the division and to all interested parties within 30 days.
Notes of Decisions
Cited in 53
cases (6 in the last 5 years), 1974–2024 · leading case: Forest v. Safeway Stores, Inc., 830 P.2d 778 (Alaska 1992).
Forest v. Safeway Stores, Inc., 830 P.2d 778 (Alaska 1992). “In the proposed compromise, Safeway offered a lump sum payment of $77,000, and two waivers: (1) a waiver of a small costs judgment against Forest for $489; and (2) a waiver of "any lien under AS 23.30.015 for the third party claim [Forest] has filed against Dr.”
Cooper v. Argonaut Ins. Companies, 556 P.2d 525 (Alaska 1976). “In his letter accompanying the bill, Acting Governor Wade stated: Pursuant to State law and the Uniform Rules of the Legislature, I am submitting a bill to repeal and reenact AS 23.30.015. This proposed legislation brings the Alaska Workmen's Compensation Act up to date with…”
Arctic Structures, Inc. v. Wedmore, 605 P.2d 426 (Alaska 1979). “After authorizing suits by an injured employee, AS 23.30.015 specifies in subsection (g): (g) If the employee or his representative recovers damages from the third person, the employee or representative shall promptly pay to the employer the total amounts paid by the employer…”
Stafford v. Westchester Fire Ins. Co. of New York, Inc., 526 P.2d 37 (Alaska 1974). “[1] Westchester demanded judgment *39 against the parties for the amount of compensation paid pursuant to AS 23.30.015. On March 12, 1972, Stafford settled his suit against W.”
Exxon Corp. v. Alvey, 690 P.2d 733 (Alaska 1984). “not be applied in the workers’ compensation context due to the specific statutory procedures set out in AS 23.30.015. Civil Rule 17(a), which sets out the standards for real parties in interest, specifically provides that “a party authorized by statute may sue in his own name…”
Williams v. Util. Equip., Inc., 837 P.2d 1112 (Alaska 1992). “We believe that the trial court properly determined that Utility Equipment’s Rule 82 award is a “cost of litigation” which must be deducted from the settlement funds held in trust by Williams’ attorneys before Williams’ employer may obtain reimbursement under AS 23.30.015(g).…”
McCarter v. Alaska Nat'l Ins. Co., 883 P.2d 986 (Alaska 1994). “Nothing in the text of AS 23.30.015 supports McCarter’s double recovery theory.”
Tolan v. ERA Helicopters, Inc., 699 P.2d 1265 (Alaska 1985). “We also observed that under AS 23.30.015(b) the injured worker is authorized to sue on his own behalf and for the benefit of the employer if he sues within one year after an award.”
Scammon Bay Ass'n, Inc. v. Ulak, 126 P.3d 138 (Alaska 2005). “An employer with a compensation lien whose fault is subject to allocation during litigation brought by an injured worker under AS 23.30.015 has several interests. The employer wants the plaintiff to recover from the third party an amount sufficient to cover its lien and to…”
Cornelison v. TIG Ins., 376 P.3d 1255 (Alaska 2016). “56 AS 23.30.015. See also, e.g., Suave v. Winfree, 907 P.”
Indus. Indem. Co. v. State, 669 P.2d 561 (Alaska 1983). “Industrial Indemnity Company of Alaska paid workers' compensation benefits to Richey's wife and brought this action against the State of Alaska under AS 23.30.015 [1] and the Alaska Tort Claims Act, AS 09.”
Berger v. Wien Air Alaska, 995 P.2d 240 (Alaska 2000). “” 13 We have already determined that the “clear purpose” of AS 23.30.015 is “to allow employees to seek damages from third-party tortfeasors without jeopardizing their compensation while, at the same time, allowing employers to share in damage awards.”
— Alaska Stat. § 23.30.015(a) — 7 cases
Forest v. Safeway Stores, Inc., 830 P.2d 778 (Alaska 1992). “In the proposed compromise, Safeway offered a lump sum payment of $77,000, and two waivers: (1) a waiver of a small costs judgment against Forest for $489; and (2) a waiver of "any lien under AS 23.30.015 for the third party claim [Forest] has filed against Dr.”
Van Biene v. ERA Helicopters, Inc., 779 P.2d 315 (Alaska 1989).
Elliott v. Brown, 569 P.2d 1323 (Alaska 1977).
Alaska State Comm'n for Human Rights v. United Physical Therapy, United Physical Therapy v. Alaska State Comm'n for Human Rights, 484 P.3d 599 (Alaska 2021).
McCarter v. Alaska Nat'l Ins. Co., 883 P.2d 986 (Alaska 1994). “Nothing in the text of AS 23.30.015 supports McCarter’s double recovery theory.”
— Alaska Stat. § 23.30.015(b) — 8 cases
Tolan v. ERA Helicopters, Inc., 699 P.2d 1265 (Alaska 1985). “We also observed that under AS 23.30.015(b) the injured worker is authorized to sue on his own behalf and for the benefit of the employer if he sues within one year after an award.”
Exxon Corp. v. Alvey, 690 P.2d 733 (Alaska 1984). “not be applied in the workers’ compensation context due to the specific statutory procedures set out in AS 23.30.015. Civil Rule 17(a), which sets out the standards for real parties in interest, specifically provides that “a party authorized by statute may sue in his own name…”
Forest v. Safeway Stores, Inc., 830 P.2d 778 (Alaska 1992). “In the proposed compromise, Safeway offered a lump sum payment of $77,000, and two waivers: (1) a waiver of a small costs judgment against Forest for $489; and (2) a waiver of "any lien under AS 23.30.015 for the third party claim [Forest] has filed against Dr.”
Providence Washington Ins. Co. v. DeHavilland Aircraft Co. of Canada, 699 P.2d 355 (Alaska 1985).
Thomas J. Knolmayer, M.D., Alaska Trauma & Acute Care Surgery, LLC. v. Charina McCollum & Jason McCollum, 520 P.3d 634 (Alaska 2022).
— Alaska Stat. § 23.30.015(c) — 1 case
Croxton v. Crowley Mar. Corp., 758 P.2d 97 (Alaska 1988).
— Alaska Stat. § 23.30.015(e) — 2 cases
Cooper v. Argonaut Ins. Companies, 556 P.2d 525 (Alaska 1976). “In his letter accompanying the bill, Acting Governor Wade stated: Pursuant to State law and the Uniform Rules of the Legislature, I am submitting a bill to repeal and reenact AS 23.30.015. This proposed legislation brings the Alaska Workmen's Compensation Act up to date with…”
Stone v. Fluid Air Components of Alaska, 990 P.2d 621 (Alaska 1999).
— Alaska Stat. § 23.30.015(e)(1) — 1 case
Croxton v. Crowley Mar. Corp., 758 P.2d 97 (Alaska 1988).
— Alaska Stat. § 23.30.015(e)(1)(A) — 1 case
Stone v. Fluid Air Components of Alaska, 990 P.2d 621 (Alaska 1999).
— Alaska Stat. § 23.30.015(e)(1)(D) — 1 case
Stone v. Fluid Air Components of Alaska, 990 P.2d 621 (Alaska 1999).
— Alaska Stat. § 23.30.015(f) — 1 case
Teresa Lunbeck v. Firstgroup Am., Inc., & N.H. Ins. Co. (Alaska 2018).
— Alaska Stat. § 23.30.015(g) — 30 cases
Cooper v. Argonaut Ins. Companies, 556 P.2d 525 (Alaska 1976). “In his letter accompanying the bill, Acting Governor Wade stated: Pursuant to State law and the Uniform Rules of the Legislature, I am submitting a bill to repeal and reenact AS 23.30.015. This proposed legislation brings the Alaska Workmen's Compensation Act up to date with…”
Stafford v. Westchester Fire Ins. Co. of New York, Inc., 526 P.2d 37 (Alaska 1974). “[1] Westchester demanded judgment *39 against the parties for the amount of compensation paid pursuant to AS 23.30.015. On March 12, 1972, Stafford settled his suit against W.”
Arctic Structures, Inc. v. Wedmore, 605 P.2d 426 (Alaska 1979). “After authorizing suits by an injured employee, AS 23.30.015 specifies in subsection (g): (g) If the employee or his representative recovers damages from the third person, the employee or representative shall promptly pay to the employer the total amounts paid by the employer…”
Williams v. Util. Equip., Inc., 837 P.2d 1112 (Alaska 1992). “We believe that the trial court properly determined that Utility Equipment’s Rule 82 award is a “cost of litigation” which must be deducted from the settlement funds held in trust by Williams’ attorneys before Williams’ employer may obtain reimbursement under AS 23.30.015(g).…”
Exxon Corp. v. Alvey, 690 P.2d 733 (Alaska 1984). “not be applied in the workers’ compensation context due to the specific statutory procedures set out in AS 23.30.015. Civil Rule 17(a), which sets out the standards for real parties in interest, specifically provides that “a party authorized by statute may sue in his own name…”
— Alaska Stat. § 23.30.015(h) — 7 cases
Forest v. Safeway Stores, Inc., 830 P.2d 778 (Alaska 1992). “In the proposed compromise, Safeway offered a lump sum payment of $77,000, and two waivers: (1) a waiver of a small costs judgment against Forest for $489; and (2) a waiver of "any lien under AS 23.30.015 for the third party claim [Forest] has filed against Dr.”
Atkins v. Inlet Transp. & Taxi Serv., Inc., 426 P.3d 1124 (Alaska 2018).
State, Dep't of Fish & Game v. Kacyon, 31 P.3d 1276 (Alaska 2001).
BBFM Engineers, Inc. v. Eric McDonald, Architects Alaska, Inc. v. Eric McDonald, 530 P.3d 352 (Alaska 2023).
George Easley Co. v. Est. of Lindekugel, 117 P.3d 734 (Alaska 2005).
— Alaska Stat. § 23.30.015(i) — 7 cases
Arctic Structures, Inc. v. Wedmore, 605 P.2d 426 (Alaska 1979). “After authorizing suits by an injured employee, AS 23.30.015 specifies in subsection (g): (g) If the employee or his representative recovers damages from the third person, the employee or representative shall promptly pay to the employer the total amounts paid by the employer…”
Harned v. Dura Corp., 665 P.2d 5 (Alaska 1983).
Van Biene v. ERA Helicopters, Inc., 779 P.2d 315 (Alaska 1989).
Providence Washington Ins. Co. v. DeHavilland Aircraft Co. of Canada, 699 P.2d 355 (Alaska 1985).
Alaska Nat'l Ins. Co. v. Jones, 993 P.2d 424 (Alaska 1999).
— Alaska Stat. § 23.30.015(j) — 1 case
Forest v. Safeway Stores, Inc., 830 P.2d 778 (Alaska 1992). “In the proposed compromise, Safeway offered a lump sum payment of $77,000, and two waivers: (1) a waiver of a small costs judgment against Forest for $489; and (2) a waiver of "any lien under AS 23.30.015 for the third party claim [Forest] has filed against Dr.”
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