Workers' compensation, often referred to simply as workers' comp, is a state-operated insurance system. Most Wyoming employers are required to pay into the fund to cover the cost of injuries to employees while they are on the job. Many employers who are not required to participate do so by choice.

Once it is established that an injury occurred on the job, a portion of the losses from the injury are paid by workers' comp. An employee whose injury is covered by workers' comp is barred from suing the employer for any compensation.

An employee may, however, sue someone other than the employer if that third party -- e.g., an outside contractor -- bears some responsibility for the injury.

Current law provides that if an injured worker wins damages from a party other than the employer (a "third party"), the workers’ comp fund must then be reimbursed for all payments made to that employee, in an amount not to exceed one-third of the total damages recovered.

HB 107 proposed to reduce the workers’ comp fund share of third-party recoveries in proportion to any amount of fault attributed to the employer by a jury or judge. Thus, the employer would not be rewarded through the workers’ comp fund with damages for an injury the employer partially caused.

Because an employer’s premiums to the workers’ comp insurance system are determined by its claims record, proponents of the bill argued that an employer should not realize a benefit from partially causing an injury, especially when the employer is not involved in the lawsuit against the third party and pays no legal fees.

Opponents argued that workers’ compensation is a no-fault system, so an employer should not be held responsible through premiums for an injury compensated by a third party.

HB 107 was referred to the House Labor, Health & Social Services, where it passed by a narrow 5-4 margin. It then died on General File in the House (was not brought up for consideration).