Mr. Justice Stevens
announced the judgment of the Court and delivered an opinion, in which Mr. Justice Brennan, Mr. Justice Stewart, and Mr. Justice Blackmun joined.
Petitioner received an award of disability benefits under the Virginia Workmen’s Compensation Act. The question [264]*264presented is whether the obligation of the District of Columbia to give full faith and credit to that award1 bars a supplemental award under the District’s Workmen’s Compensation Act.2
Petitioner is a resident of the District of Columbia and was hired in the District of Columbia. During the year that he was employed by respondent, he worked primarily in the District but also worked in Virginia and Maryland. He sustained a back injury while at work in Arlington, Va., on January 22, 1971. Two weeks later he entered into an “Industrial Commission of Virginia Memorandum of Agreement as to Payment of Compensation” providing for benefits of $62 per week. Several weeks later the Virginia Industrial Commission approved the agreement and issued its award directing that payments continue “during incapacity,” subject to various contingencies and changes set forth in the Virginia statute. App. 49.
In 1974, petitioner notified the Department of Labor of his [265]*265intention to seek compensation under the District of Columbia Act. Respondent opposed the claim primarily3 on the ground that since, as a matter of Virginia law, the Virginia award excluded any other recovery “at common law or otherwise” on account of the injury in Virginia,4 the District of Columbia’s obligation to give that award full faith and credit precluded a second, supplemental award in the District.
The Administrative Law Judge agreed with respondent that the Virginia award must be given res judicata effect in the District to the extent that it was res judicata in Virginia.5 He held, however, that the Virginia award, by its terms, did not preclude a further award of compensation in Virginia.6 [266]*266Moreover, he construed the statutory prohibition against additional recovery “at common law or otherwise” as merely covering “common law and other remedies under Virginia law.” 7 After the taking of medical evidence, petitioner was awarded permanent total disability benefits payable from the date of his injury with a credit for the amounts previously paid under the Virginia award. Id., at 31.
The Benefits Review Board upheld the award. 9 BRBS 760 (1978). Its order, however, was reversed by the United States Court of Appeals for the Fourth Circuit, judgment order reported at 598 F. 2d 617,8 which squarely held that a “second and separate proceeding in another jurisdiction upon the same injury after a prior recovery in another State [is] precluded by the Full Faith and Credit Clause.”9 We granted certiorari, 444 U. S. 962, and now reverse.
I
Respondent contends that the District of Columbia was without power to award petitioner additional compensation because of the Full Faith and Credit Clause of the Constitution or, more precisely, because of the federal statute implementing that Clause.10 An analysis of this contention must [267]*267begin with two decisions from the 1940’s that are almost directly on point: Magnolia Petroleum Co. v. Hunt, 320 U. S. 430, and Industrial Comm’n of Wisconsin v. McCartin, 330 U. S. 622.
In Magnolia, a case relied on heavily both by respondent and the Court of Appeals, the employer hired a Louisiana worker in Louisiana. The employee was later injured during the course of his employment in Texas. A tenuous majority11 held that Louisiana was not permitted to award the injured worker supplementary compensation under the Louisiana Act after he had already obtained a recovery from the Texas Industrial Accident Board:
“Respondent was free to pursue his remedy in either state but, having chosen to seek it in Texas, where the award was res judicata, the full faith and credit clause [268]*268precludes him from again seeking a remedy in Louisiana upon the same grounds.” 320 U. S., at 444.
Little more than three years later, the Court severely curtailed the impact of Magnolia,. In McCartin, the employer and the worker both resided in Illinois and entered into an employment contract there for work to be performed in Wisconsin. The employee was injured in the course of that employment. He initially filed a claim with the Industrial Commission of Wisconsin. Prior to this Court’s decision in Magnolia, the Wisconsin Commission informed him that under Wisconsin law, he could proceed under the Illinois Workmen’s Compensation Act, and then claim compensation under the Wisconsin Act, with credit to be given for any payments made under the Illinois Act. Thereafter, the employer and the employee executed a contract for payment of a specific sum in full settlement of the employee’s right under Illinois law. The contract expressly provided, however, that it would “ 'not affect any rights that applicant may have under the Workmen’s Compensation Act of the State of Wisconsin.’ ” 330 U. S., at 624. The employee then obtained a supplemental award from the Wisconsin Industrial Commission; but the Wisconsin state courts vacated it under felt compulsion of the intervening decision in Magnolia.
This Court reversed, holding without dissent12 that Magnolia was not controlling. Although the Court could have relied exclusively on the contract provision reserving the employee’s rights under Wisconsin law to distinguish the case from Magnolia, Mr. Justice Murphy’s opinion provided a significantly different ground for the Court’s holding when it said:
“[T]he reservation spells out what we believe to be implicit in [the Illinois Workmen’s Compensation] Act— namely, that an . . . award of the type here involved does not foreclose an additional award under the laws of [269]*269another state. And in the setting of this case, that fact is of decisive significance.” 330 TJ. S., at 630.
Earlier in the opinion, the Court had stated that “[o]nly some unmistakable language by a state legislature or judiciary would warrant our accepting ... a construction” that a workmen’s compensation statute “is designed to preclude any recovery by proceedings brought in another state.” Id., at 627-628. The Illinois statute, which the Court held not to contain the “unmistakable language” required to preclude a supplemental award in Wisconsin, broadly provided:
“ ‘No common law or statutory right to recover damages for injury or death sustained by any employe while engaged in the line of his duty as such employe, other than the compensation herein provided, shall be available to any employe who is covered by the provisions of this act, . . Id., at 627.
The Virginia Workmen’s Compensation Act’s exclusive-remedy provision, see n. 4, supra, is not exactly the same as Illinois’; but it contains no “unmistakable language” directed at precluding a supplemental compensation award in another State that was not also in the Illinois Act. Consequently, McCartin by its terms, rather than the earlier Magnolia decision, is controlling as between the two precedents. Nevertheless, the fact that we find ourselves comparing the language of two state statutes, neither of which has been construed by the highest court of either State, in an attempt to resolve an issue arising under the Full Faith and Credit Clause makes us pause to inquire whether there is a fundamental flaw in our analysis of this federal question.
II
We cannot fail to observe that, in the Court’s haste to retreat from Magnolia,13 it fashioned a rule that clashes with [270]*270normally accepted full faith and credit principles. It has long been the law that “the judgment of a state court should have the same credit, validity, and effect, in every other court in the United States, which it had in the state where it was pronounced.” Hampton v. McConnel, 3 Wheat. 234, 235 (Marshall, C. J.,). See also Mills v. Duryee, 7 Cranch 481, 484 (Story, J.). This rule, if not compelled by the Full Faith and Credit Clause itself, see n. 18, infra, is surely required by 28 U. S. C. § 1738, which provides that the “Acts, records and judicial proceedings ... [of any State] shall have the same full faith and credit in every court within the United States ... as they have by law or usage in the courts of [the] State . . . from which they are taken.” See n. 1, supra.14 Thus, in effect, by virtue of the full faith and credit obligations of the several States, a State is permitted to determine the extraterritorial effect of its judgments; but it may only do so indirectly, by prescribing the effect of its judgments within the State.
The McCartin rule, however, focusing as it does on the extraterritorial intent of the rendering State, is fundamentally different. It authorizes a State, by drafting or construing its legislation in “unmistakable language,” directly to determine the extraterritorial effect of its workmen’s compensation awards. An authorization to a state legislature of this character is inconsistent with the rule established in Pacific Em[271]*271ployers Ins. Co. v. Industrial Accident Comm’n, 306 U. S. 493, 502:
“This Court must determine for itself how far the full faith and credit clause compels the qualification or denial of rights asserted under the laws of one state, that of the forum, by the statute of another state.”
It follows inescapably that the McCartin “unmistakable language” rule represents an unwarranted delegation to the States of this Court’s responsibility for the final arbitration of full faith and credit questions.15 The Tull Faith and [272]*272Credit Clause “is one of the provisions incorporated into the Constitution by its framers for the purpose of, transforming an aggregation of independent, sovereign States into a nation.” Sherrer v. Sherrer, 334 U. S. 343, 355. To vest the power of determining the extraterritorial effect of a State’s own laws and judgments in the State itself risks the very kind of parochial entrenchment on the interests of other States that it was the purpose of the Full Faith and Credit Clause and other provisions of Art. IV of the Constitution to prevent. See Nevada v. Hall, 440 U. S. 410, 424-425.16
Thus, a re-examination of McCartin’s, “unmistakable language” test reinforces our tentative conclusion that it does not provide an acceptable basis on which to distinguish Magnolia. But if we reject that test, we must decide whether to overrule either Magnolia or McCartin. In making this kind of decision, we must take into account both the practical values served by the doctrine of stare decisis and the principles that inform the Full Faith and Credit Clause.
Ill
The doctrine of stare decisis imposes a severe burden on the litigant who asks us to disavow one of our precedents. For that doctrine not only plays an important role in orderly adjudication;17 it also serves the broader societal interests in evenhanded, consistent, and predictable application of legal rules. When rights have been created or modified in reliance on established rules of law, the arguments against their change have special force.18
[273]*273It is therefore appropriate to begin the inquiry by considering whether a rule that permits, or a rule that forecloses, successive workmen’s compensation awards is more consistent with settled practice. The answer to this question is pel-lucidly clear.
It should first be noted that Magnoliaby only the slimmest majority, see n. 11, supra, effected a dramatic change in the law that had previously prevailed throughout the United States. See Mr. Justice Black’s dissent in Magnolia, 320 U. S., [274]*274at 457-459, 462.19 Of greater importance is the fact that as a practical matter the “unmistakable language” rule of construction announced in McCartin left only the narrowest area in which Magnolia could have any further precedential value. For the exclusivity language in the Illinois Act construed in McCartin was typical of most state workmen’s compensation laws. Consequently, it was immediately recognized that Magnolia no longer had any significant practical impact.20 Moreover, since a state legislature seldom focuses on the [275]*275extraterritorial effect of its enactments,21 and since a state court has even less occasion to consider whether an award under its State’s law is intended to preclude a supplemental award under another State’s Workmen’s Compensation Act, the probability that any State would thereafter announce a new rule against supplemental awards in other States was extremely remote. As a matter of fact, subsequent cases in the state courts have overwhelmingly followed McCartin and permitted successive state workmen’s compensation awards.22 [276]*276Thus, all that really remained of Magnolia after McCartin was a largely theoretical difference between what the Court described as “unmistakable language” and the broad language [277]*277of the exclusive-remedy provision in the Illinois Workmen’s Compensation Act involved in McCartin.
This history indicates that the principal values underlying the doctrine of stare decisis would not be served either by attempting to revive Magnolia or by attempting to preserve the uneasy coexistence of Magnolia and McCartin. The latter attempt could only breed uncertainty and unpredictability, since the application of the “unmistakable language” rule of McCartin necessarily depends on a determination by one state tribunal of the effect to be given to statutory language enacted by the legislature of a different State. And the former would represent a rather dramatic change that surely would not promote stability in the law. Moreover, since Magnolia has been so rarely followed, there appears to be little danger that there has been any significant reliance on its rule. We conclude that a fresh examination of the full faith and credit issue is therefore entirely appropriate.
IV
Three different state interests are affected by the potential conflict between Virginia and the District of Columbia. Virginia has a valid interest in placing a limit on the potential liability of companies that transact business within its borders. Both jurisdictions have a valid interest in the welfare of the injured employee — Virginia because the injury occurred within that State, and the District because the injured party was employed and resided there. And finally, Virginia has an interest in having the integrity of its formal determinations of contested issues respected by other sovereigns.
The conflict between the first two interests was resolved in Alaska Packers Assn. v. Industrial Accident Comm’n, 294 U. S. 532, and a series of later cases. In Alaska Packers, [278]*278California, the State where the employment contract was made, was allowed to apply its own workmen’s compensation statute despite the statute of Alaska, the place where the injury occurred, which was said to afford the exclusive remedy for injuries occurring there. Id., at 539. The Court held that the conflict between the statutes of two States ought not to be resolved “by giving automatic effect to the full faith and credit clause, compelling the courts of each state to subordinate its own statutes to those of the other, but by appraising the governmental interests of each jurisdiction, and turning the scale of decision according to their weight.” Id., at 547.
The converse situation was presented in Pacific Employers Ins. Co. v. Industrial Accident Comm’n, 306 U. S. 493. In that case the injury occurred in California, and the objection to California’s jurisdiction was based on a statute of Massachusetts, the State where the employee resided and where the employment contract had been made. The Massachusetts statute provided that the remedy afforded was exclusive of the worker’s “ ‘right of action at common law or under the law of any other jurisdiction.’” Id., at 498. Again, however, California was permitted to provide the employee with an award under the California statute.23
[279]*279The principle that the Full Faith and Credit Clause does not require a State to subordinate its own compensation policies to those of another State has been consistently applied in more recent cases. Carroll v. Lanza, 349 U. S. 408; Crider v. Zurich Ins. Co., 380 U. S. 39; Nevada v. Hall, 440 U. S., at 421-424. Indeed, in the Nevada case the Court not only rejected the contention that California was required to respect a statutory limitation on the defendant’s liability, but did so in a case in which the defendant was the sovereign State itself asserting, alternatively, an immunity from any liability in the courts of California.
It is thus perfectly clear that petitioner could have sought a compensation award in the first instance either in Virginia, the State in which the injury occurred, Carroll v. Lanza, supra; Pacific Employers, supra,24 or in the District of Columbia, where petitioner resided, his employer was principally located, and the employment relation was formed, Cardillo v. Liberty Mutual Ins. Co., 330 U. S. 469; Alaska Packers Assn. v. Industrial Accident Comm’n, supra. And as those cases underscore, compensation could have been sought under either [280]*280compensation scheme even if one statute or the other purported to confer an exclusive remedy on petitioner. Thus, for all practical purposes, respondent and its insurer would have had to measure their potential liability exposure by the more generous of the two workmen’s compensation schemes in any event. It follows that a State’s interest in limiting the potential liability of businesses within the State is not of controlling importance.
It is also manifest that the interest in providing adequate compensation to the injured worker would be fully served by the allowance of successive awards. In this respect the two jurisdictions share a common interest and there is no danger of significant conflict.
The ultimate issue, therefore, is whether Virginia’s interest in the integrity of its tribunal’s determinations forecloses a second proceeding to obtain a supplemental award in the District of Columbia. We return to the Court’s prior resolution of this question in Magnolia.
The majority opinion in Magnolia took the position that the case called for a straightforward application of full faith and credit law: the worker’s injury gave rise to a cause of action; relief was granted by the Texas Industrial Accident Board; that award precluded any further relief in Texas;25 and further relief was therefore precluded elsewhere as well. The majority relied heavily on Chicago, R. I. & P. R. Co. v. Schendel, 270 U. S. 611, for the propositions that a workmen’s compensation award stands on the same footing as a court judgment, and that a compensation award under one State’s law is a bar to a second award under another State’s law. See 320 U. S., at 441, 446.
But Schendel did not compel the result in Magnolia. See 320 U. S., at 448 (Douglas, J., dissenting); id., at 457 (Black, J., dissenting).26 In Schendel, the Court held that an Iowa state [281]*281compensation award, which was grounded in a contested factual finding that the deceased railroad employee was engaged in intrastate commerce, precluded a subsequent claim under the Federal Employers’ Liability Act (FELA) brought in the Minnesota state courts, which would have required a finding that the employee was engaged in interstate commerce. Schendel therefore involved the unexceptionable full faith and credit principle that resolutions of factual matters underlying a judgment must be given the same res judicata effect in the forum State as they have in the rendering State. See Durfee v. Duke, 375 U. S. 106; Sherrer v. Sherrer, 334 U. S., at 351-352. The Minnesota courts could not have granted relief under the FELA and also respected the factual finding made in Iowa.27
In contrast, neither Magnolia nor this case concerns a second State’s contrary resolution of a factual matter determined in the first State’s proceedings. Unlike the situation in Schendel, which involved two mutually exclusive remedies, compensation could be obtained under either Virginia’s or the District’s workmen’s compensation statutes on the basis of the same set of facts. A supplemental award gives full effect to the facts determined by the first award and also allows full credit for payments pursuant to the earlier award. There is neither inconsistency nor double recovery.
We are also persuaded that Magnolia’s reliance on Schendel for the proposition that workmen’s compensation awards stand on the same footing as court judgments was unwarranted. To be sure, as was held in Schendel, the factfindings of state administrative tribunals are entitled to the same res judicata effect in the second State as findings by a court. But the critical differences between a court of general juris[282]*282diction and an administrative agency with limited statutory authority forecloses the conclusion that constitutional rules applicable to court judgments are necessarily applicable to workmen’s compensation awards.
A final judgment entered by a court of general jurisdiction normally establishes not only the measure of the plaintiff’s rights but also the limits of the defendant’s liability. A traditional application of res judicata principles enables either party to claim the benefit of the judgment insofar as it resolved issues the court had jurisdiction to decide. Although a Virginia court is free to recognize the perhaps paramount interests of another State by choosing to apply that State’s law in a particular case, the Industrial Commission of Virginia does not have that power. Its jurisdiction is limited to questions arising under the Virginia Workmen’s Compensation Act. See Va. Code §65:1-92 (1980). Typically, a workmen’s compensation tribunal may only apply its own State’s law.28 In this case, the Virginia Commission could and did establish the full measure of petitioner’s rights under Virginia law, but it neither could nor purported to determine his rights under the law of the District of Columbia. Full faith [283]*283and credit must be given to the determination that the Virginia Commission had the authority to make; but by a parity of reasoning, full faith and credit need not be given to determinations that it had no power to make.29 Since it was not requested, and had no authority, to pass on petitioner’s rights under District of Columbia law, there can be no constitutional objection to a fresh adjudication of those rights.30
It is true, of course, that after Virginia entered its award, that State had an interest in preserving the integrity of what [284]*284it had done. And it is squarely within the purpose of the Full Faith and Credit Clause, as explained in Pacific Employers, 306 U. S., at 501, “to preserve rights acquired or confirmed under the public acts” of Virginia by requiring other States to recognize their validity. See n. 23, supra. Thus, Virginia had an interest in having respondent pay petitioner the amounts specified in its award. Allowing a supplementary recovery in the District does not conflict with that interest.
As we have already noted, Virginia also has a separate interest in placing a ceiling on the potential liability of companies that transact business within the State. But past cases have established that that interest is not strong enough to prevent other States with overlapping jurisdiction over particular injuries from giving effect to their more generous compensation policies when the employee selects the most favorable forum in the first instance. Thus, the only situations in which the Magnolia rule would tend to serve that interest are those in which an injured workman has either been constrained by circumstances to seek relief in the less generous forum or has simply made an ill-advised choice of his first forum.
But in neither of those cases is there any reason to give extra weight to the first State’s interest in placing'a ceiling on the employer’s liability than it otherwise would have had. For neither the first nor the second State has any overriding interest in requiring an injured employee to proceed with special caution when first asserting his claim. Compensation proceedings are often initiated' informally, without the advice of counsel, and without special attention to the choice of the most appropriate forum. Often the worker is still hospitalized when benefits are sought as was true in this case. And indeed, it is not always the injured worker who institutes the claim. See Schendel, 270 U. S., at 614.31 This informality [285]*285is consistent with the interests of both States. A rule forbidding supplemental recoveries under more favorable workmen’s compensation schemes would require a far more formal and careful choice on the part of the injured worker than may be possible or desirable when immediate commencement of benefits may be essential.
Thus, whether or not the worker has sought an award from the less generous jurisdiction in the first instance, the vindication of that State’s interest in placing a ceiling on employers’ liability would inevitably impinge upon the substantial interests of the second jurisdiction in thé welfare and subsistence of disabled workers — interests that a court of general jurisdiction might consider, but which must be ignored by the Virginia Industrial Commission. The.reasons why the statutory policy of exclusivity of the other jurisdictions involved in Alaska Packers and Pacific Employers, could not defeat California’s implementation of its own compensation policies therefore continue to apply even after the entry of a workmen’s compensation award.
Of course, it is for each State to formulate its own policy whether to grant supplemental awards according to its perception of its own interests. We simply conclude that the substantial interests of the second State in these circumstances should not be overridden by another State through an unnecessarily aggressive application of the Full Faith and Credit Clause,32 as was implicitly recognized at the time of McCartin.
[286]*286We therefore would hold that a State has no legitimate interest within the context of our federal system in preventing another State from granting a supplemental compensation award when that second State would have had the power to apply its workmen’s compensation law in the first instance. The Full Faith and Credit Clause should not be construed to preclude successive workmen’s compensation awards. Accordingly, Magnolia Petroleum Co. v. Hunt should be overruled.
The judgment of the Court of Appeals is reversed, and the case is remanded.
bo ordered.