Wyo. Stat. § 27-14-105 (2026)

subrogation; legal representation; payment under reservation of
rights; actions by department.

     (a) If an employee covered by this act receives an injury
under circumstances creating a legal liability in some person
other than the employer to pay damages, the employee if engaged
in work for his employer at the time of the injury is not
deprived of any compensation to which he is entitled under this
act. He may also pursue his remedy at law against the third
party or the coemployee to the extent permitted by W.S.
27-14-104(a). Except as provided by subsections (b), (e) and (f)
of this section, if the employee recovers from the third party
or the coemployee in any manner including judgment, compromise,
settlement or release, the state is entitled to be reimbursed
for all payments made, or to be made, to or on behalf of the
employee under this act but not to exceed one-third (1/3) of the
total proceeds of the recovery without regard to the types of
damages alleged in the third-party action. Any recovery by the
state shall be reduced pro rata for attorney fees and costs in
the same proportion as the employee is liable for fees and
costs. All money received by the state under this section shall
be credited to the worker's compensation account and considered
in computing the employer's experience rating.

     (b) The director and the attorney general shall be served
by certified mail return receipt requested with a copy of the
complaint filed in any suit initiated pursuant to subsection (a)
of this section. Service of the complaint on the director and
attorney general is a jurisdictional requirement in order to
maintain the suit. The director and the attorney general shall
be notified in writing by certified mail return receipt
requested of any judgment, compromise, settlement or release
entered into by an employee. Before offering settlement to an
employee, a third party or its insurer shall notify the state of
the proposed settlement and give the state fifteen (15) days
after receipt of such notice in which to object. If notice of
proposed settlement is not provided, the state is entitled to
initiate an independent action against the third party or its
insurer for all payments made to and any amount reserved for or
on behalf of the employee under this act. If there is a
settlement, compromise or release entered into by the parties in
claims against a person other than the employer, the attorney
general representing the director shall be made a party in all
such negotiations for settlement, compromise or release. The
attorney general and the director, for purposes of facilitating
compromise and settlement, may in a proper case authorize
acceptance by the state of less than the state's claim for
reimbursement. The proceeds of any judgment, settlement,
compromise or release are encumbered by a continuing lien in
favor of the state to the extent of the total amount of the
state's claim for reimbursement under this section and for all
current and future benefits under this act. The lien shall
remain in effect until the state is paid the amount authorized
under this section. In addition the person paying the settlement
remains liable to the state for the state's claim unless the
state through the attorney general signs the release prior to
payment of an agreed settlement.
     (c) If the injury causes the death of the employee, the
rights and remedies in this section inure to and the obligations
are binding upon the personal representative of the deceased
employee for the benefit of his dependents.

     (d) Any attorney who fails to notify the director and
attorney general of any settlement or fails to ensure the state
receives its share of the proceeds of any settlement or judgment
under subsection (a) of this section shall be reported to the
grievance committee of the Wyoming state bar.

     (e) At any time before the statute of limitation bars an
employee or his estate from commencing a claim for personal
injury or wrongful death, and upon the unsolicited written
request of the employee or estate, the department may commence
such an action on behalf of the employee or his estate. From
any amounts recovered under this subsection, the state is
entitled to an amount equal to all sums awarded as benefits to
the employee or his estate and all anticipated future medical
costs. Any excess recovery shall be paid to the injured
employee or his estate.

     (f) The department or employer shall have an additional
six (6) month limitation period beyond the date on which the
employee or his estate is barred under the statute of
limitations from commencing a claim for personal injury or
wrongful death, in which to commence such an action on behalf of
the employee or his estate. From any amounts recovered under
this subsection, the state is entitled to an amount equal to all
sums awarded as benefits to the employee or his estate, all
anticipated future medical costs and all costs of litigation.
Any excess recovery shall be paid to the injured employee or his
estate.

     (g) For purposes of subsections (e) and (f) of this
section, nothing in this section prohibits any third party from
reimbursing the worker's compensation account for medical or
temporary total disability costs without prejudice prior to any
judgment, settlement or release.