When Do You Settle With Workers Comp?

The pain of injury can worsen from the stress of a worker's compensation claim.

Worker's compensation claims can be the most difficult and time consuming cases. An injured worker typically experiences stress, fear, anger and pain. The ultimate goal is for the injured worker to get all the treatment needed for his injury without paying for it out of his own pocket. Sometimes, a settlement is the only way to achieve this outcome.

Uncertain Outcome

The most common situation to consider settlement is if an injured worker is uncertain about the outcome of his claim. For example, if an attorney or a judge tells a worker that he has a 50 percent chance or less of winning, he probably wants to explore settlement. This would ensure the payment of all the medical bills related to the injury and any lost wages. It is a more certain resolution to a claim.

Medical Condition Stable

Most cases are ready for settlement once an injured worker's conditions are stable and he is no longer in need of treatment. At this point, all medical bills are typically paid and the final question is whether there is any permanent disability related to the injury. It is usually financially beneficial for both the injured worker and the employee to settle on determined sum of money to close the claim.

Claim Denied

Settle to recoup the costs of the claim.

Sometimes even the most medically supported worker's compensation claims get denied. The next step is for the injured worker to appeal. Once you appeal a claim, both the employer and the injured worker obtain attorneys. In an attempt to avoid expensive legal fees, the parties work toward a settlement. Also, if the injured worker has a really well supported case, the employer will offer a settlement to avoid paying the injured worker's attorneys fees or interest on awards.

End Relationship with Employer

The employer typically pursue settlement rather than the injured worker. If a claim is long and contentious, employers may offer the injured worker a large sum of money in exchange for closing the claim closing and the injured worker's voluntarily retirement. This usually includes having the injured worker sign a release of all claims against the employer, which ends the relationship between the two parties and avoids any future employment law suits.

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