Brubacher Excavating, Inc. v. Workers' Comp. App. Bd., 835 A.2d 1273 (Pa. 2003). The Pennsylvania Supreme Court held that a former employer who is paying workers' compensation benefits is not entitled to subrogation against a wrongful termination award paid to the employee by a subsequent employer. Here, Bridges was injured while working for Brubacher Excavating (Brubacher) and began receiving disability pay. Brubacher referred Bridges to another company, with which he then obtained a light-duty job. Soon after, the second company fired Bridges because its insurance carrier refused to cover him. Bridges filed a wrongful termination suit. Brubacher then sued for subrogation against the award Bridges received for the wrongful termination suit. The workers' compensation judge held that Brubacher was not entitled to subrogation, and both the appeal board and an appellate court agreed. Affirming, the state high court noted that, although subrogation is considered an absolute right, whether or not an employer is entitled to subrogation depends on the particular statute involved. In this case, the state Workers' Compensation Act, 77 Pa. Stat. § 671, provides that subrogation is only permitted when a third party causes the "compeiisable injury." The court said case law has long held that there are two components to compensable injury: (1) a work-related physical or mental injury suffered by an employee and (2) a loss of earning power.

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