Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Written By Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
ContributorAdam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida. After law school, Adam and spent two years clerking for a U.S. District Co.
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida. After law school, Adam and spent two years clerking for a U.S. District Co.
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida. After law school, Adam and spent two years clerking for a U.S. District Co.
Adam has resided at the intersection of legal and journalism for two decades. An award-winning journalist and legal strategist, he’s covered high-profile trials in Florida. After law school, Adam and spent two years clerking for a U.S. District Co.
Updated: Oct 27, 2023, 12:14pm
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A workplace injury can cause serious long-term physical and financial consequences. You should be compensated when your job duties cause you to become sick or hurt. A workers’ comp settlement helps you get the money you deserve after you’re harmed as a result of your employment.
This guide will explain what a workers’ comp settlement is, the steps involved in settling, and the types of losses you could receive compensation for when you settle your workers’ comp claim.
If you are hurt while performing work tasks, you are generally not allowed to file a personal injury lawsuit like you would after a car accident or slip-and-fall in a store. In most states, workplace injuries must be handled through the workers’ compensation system.
Under the laws of most states, employers must purchase workers’ comp insurance. This insurance typically pays for medical costs, income an employee misses out on due to a workplace injury, and sometimes specific damages for particularly serious injuries such as loss of a limb.
If you suffer harm due to your work duties, you must alert your employer who in turn files a claim with their workers’ comp insurer. The insurer may offer to begin paying out benefits. However, in some cases, you may choose not to accept the offered payout and instead opt to negotiate a settlement with the insurer to resolve the claim.
There are a number of steps involved in settling a workers’ comp claim. Although the process can vary slightly from state to state, here’s what you can expect:
Each step of this process may be complicated for you — especially when you are focused on physically recovering from an injury. You should strongly consider getting help from a work injury lawyer as early as you can to preserve evidence and protect your rights.
Workers’ compensation settlements can cover:
Unlike in a standard personal injury claim, you cannot receive compensation for emotional distress or pain and suffering and are not eligible to receive punitive damages.
Calculating an appropriate workers’ compensation settlement amount is complicated because you need to make sure you fully recover for your losses.
You may need an expert to help you estimate future medical costs or the lifetime impact of your injuries on your earning potential.
You do not want to accept a settlement that doesn’t offer you a sufficient amount of money to help you cover your costs over time if your injuries are permanent.
Two major factors determine the average value of a workers’ compensation claim. The first is the cost of medical services. That cost increases relative to the severity of the injury.
The second factor is the current compensation of the employee. Employees who are unable to work will get two-thirds of their average weekly wage.
After a workers’ compensation claim, the employee is expected to return to work as soon as their health allows. However, it is often possible for employees to perform some work duties before they fully recover.
If a workplace has properly implemented return-to-work procedures, an employee can be brought back into the workplace during their recovery. Typically, they are given lighter duties or reduced hours. This is permissible if the employee’s doctor signs off on those duties and hours.
When an employee returns to work, their workers’ compensation benefits will be reduced.
If the worker receives pay equal to what they received before the injury — even if their duties are lighter — they are no longer eligible for workers’ compensation. However, if they are receiving reduced pay, they will receive workers’ compensation for a portion of the difference between that value and their original pay.
In some circumstances, it will not be possible to effectively negotiate a workers’ comp settlement. This could be the case if you feel your claim was improperly denied or if you believe that the insurer is offering you far less money than you need to cover your care costs and make up for lost income.
If you cannot reach a settlement, typically the claim will need to be resolved in a workers’ comp claim hearing. During this hearing, you have a chance to present your case to an administrative law judge. You will need evidence to demonstrate why you deserve more monetary compensation than you are being offered. The ALJ will then decide what damages, if any, to award you.
When a workers’ comp claim is denied, the employee can file an appeal with the state workers’ compensation commission (or similarly named agency). This appeal is very similar to an appeal of a trial. There will be a hearing in front of an administrative judge. It is best to hire a workers’ comp lawyer to assist with this appeal.
You should hire a workers’ compensation lawyer if you are hurt or made sick by your job–especially if the health consequences are severe.
State workers’ compensation laws determine your rights and are designed to protect you from financial devastation when you’re harmed at work. But they can be hard to navigate. An attorney can guide you through the settlement process so you don’t end up with less money than you deserve.
Some workers’ comp settlements can be negotiated quickly. It could take just a few weeks to agree on a settlement in simple cases. In other situations, it could take several months, or even years, for a workers’ comp claim to be resolved. This is more likely to occur if you must go to a workers’ comp claim hearing because an agreement cannot be reached with the workers’ comp insurer.
The amount of compensation available for an on-duty injury will depend on the severity of the injury and its impact on your ability to work going forward. You will need to file a workers’ compensation claim and negotiate with your employer’s workers’ comp insurer to get paid.
In general, workers cannot sue their employers to recover compensation for work-related injuries. They must go through the workers’ comp claims process. However, there are some limited exceptions such as when an employer had insufficient insurance or caused intentional harm.
Some states have online resources that allow you to track your workers’ comp check. Unfortunately, that is an exception rather than the rule. Without that option, you may be able to get information by contacting your employer or the state workers’ compensation board.
Typically, workers’ compensation is not taxable. However, there are exceptions if you are receiving both workers’ compensation and Social Security Disability payments. If this applies, you should consult with a lawyer or an accountant.
If your medical condition plateaus after an injury and is unlikely to change, you may be eligible to receive permanent disability after getting workers’ compensation. Receiving workers’ compensation previously does not change the requirements for disability eligibility.
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ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has appeared on Forbes, CNN Underscored Money, Investopedia, Credit Karma, The Balance, USA Today, and Yahoo Finance, among others.
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