How Does A Workers’ Comp Settlement Work?

You had an injury at work, you’re getting medical treatment, and receiving workers’ compensation (WC) benefits. Everything’s good, right? It is until you look at your bank account and see that a lot more money is going out than coming in. A friend advises you to sue your employer and the WC insurer. You didn’t know that was even a possibility, but now you are starting to wonder if that is what you should do.

Before you do anything, consult an experienced, knowledgeable WC attorney. They can make you aware of the advantages and disadvantages of settling your WC claim. There are many ways you can go wrong if you try to go it alone. 

What exactly is a WC settlement?

A WC settlement is an agreement in which you accept a sum of money in exchange for giving up any future claims against your employer and their WC insurer, regarding your injury or illness. The major, and obvious, benefit of such a settlement is that you get the money right away. But there are other aspects that might be detrimental to your particular situation.

There are basically three types of WC settlements, namely:

• • Full and final release of liability: Here, you give up your right to receive anymore WC benefits that you are entitled to under Florida law. This settlement also would include any injuries or illnesses that you acquired while working for your employer before the settlement, but which have not yet been identified as being work-related. 

• Partial release: In this case, you might be able to arrange a limited settlement, where you would give up your rights to some WC benefits, but your employer’s WC insurer would continue to pay your medical bills. This type of settlement, however, is fairly rare.
• Lump Sum or Structured Settlement: Most WC settlements are handled this way. You agree to a certain amount of money that would be paid in a lump sum, one-time payment, or you could arrange to receive your money in installments. Most WC settlements are handled this way.

When can I settle my WC claim?

Of course you wanted the money yesterday, looking at the stack of bills growing on your kitchen table. But it is best if you wait until you reach maximum medical improvement (MMI). This means that your doctor feels your condition has stabilized and that further improvement is unlikely. At this point, you should know the full extent of your injury and any lasting limitations or disability. If you are thinking of settling, you should first consult with a different medical provider and a WC attorney. These professionals will help you understand your final diagnosis, any future implications for the type of work you will be able to do, and the legal terms of the settlement.

If you have a WC attorney, you can settle your claim at any time. If you don’t have a lawyer, you can accept a full-and-final lump-sum payment only if:

• Your claim has been denied by the WC insurer, and a judge finds that there are legitimate grounds that you are entitled to the benefits; or
• Your doctor feels you have reached MMI and your condition will not improve.

Keep in mind that the insurer usually will stop paying your medical bills after a settlement, so it is always advisable to wait for MMI.

How much can I get in a settlement?

In Florida, there is no formula to determine the amount of your settlement. In determining an appropriate amount, insurers and WC attorneys consider several factors, such as the severity of your injury, any permanent impairment, need for future medical treatment, and your ability to return to work.

Like many other legal proceedings, agreeing on the amount of a WC settlement involves a process of negotiation. Once you have identified any future medical expenses, any permanent disabilities you have, and any unpaid benefits that you are entitled to but have not received, you and your attorney will have a better idea of how much to ask for. As in most negotiations, your attorney will start high, the insurer low, and all of you, hopefully, will meet somewhere in the middle.

Will I have to go to court?

If you have an attorney, you can avoid a settlement hearing. Your attorney will handle all the paperwork. If you don’t have an attorney, a WC judge will review the settlement you agreed to, making sure it is fair. 

What if I find that I need more money? Can I go back and change the settlement?

Once your settlement is final, you cannot reopen your claim. That is why it is so important to have a WC attorney to help you with all the ins and outs.

Call Us for a Free Case Evaluation

At The Leach Firm, P.A., we serve the people of Florida with over 100 years of combined experience in fighting workplace discrimination, personal injury, and workers’ compensation cases. Let us be your advocates to help you get the best results for your workplace injury. Call us at 844-722-7567 or contact us online to get a free case evaluation with a seasoned lawyer in Florida.