Workers’ Compensation Settlements
Workers’ compensation provides injured workers with wage replacement and medical care benefits. Typically, these benefits are distributed weekly until the injured employee is able to return to work. However, in cases involving more serious or permanent injuries, many states allow workers’ compensation claims to end in a settlement. This option is especially common for claims involving permanent disability.
Choosing to accept a workers’ compensation settlement instead of ongoing weekly benefits is a major decision. Once you agree to a settlement, you generally cannot renegotiate or reopen your claim. Insurance companies often propose settlements as a way to reduce their long-term costs, which may not always align with your best interests. The workers’ compensation attorneys at E&L, LLP can guide you through the settlement process, ensuring you receive a fair amount.
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(213) 213-0000
Frequently Asked Questions
- Understand the Consequences of Settling
Settling a workers’ compensation claim isn’t always the best option. Settlements are typically reserved for severe injuries that are expected to result in long-term or permanent disability benefits. Minor injuries that only cause a few days or weeks of missed work rarely result in settlements.
While an insurance company may propose a settlement to avoid prolonged litigation or reduce its financial burden, there are situations where a worker might also benefit from settling. For instance, a lump-sum payment could help you manage mounting bills or avoid a lengthy legal battle.
However, accepting a settlement comes with risks. Once you agree to a settlement, you may lose the ability to claim additional benefits in the future if your medical condition worsens. In some states, you might still be eligible for additional medical benefits after a settlement, but weekly wage replacement benefits are typically forfeited. This is why it’s crucial to evaluate the long-term impact of settling your claim.
- How Is a Workers’ Compensation Settlement Calculated?
A workers’ compensation settlement takes into account two main types of compensation:
- Ongoing Lost Wages
- Future Medical Bills
In the absence of a settlement, workers’ compensation insurance typically covers your medical treatment and provides weekly wage replacement benefits. A fair settlement must reflect the total amount you would have received over the lifetime of the claim.
Factors to consider when calculating a settlement include:
- The length of time you’ll be unable to work.
- Future medical expenses, including surgery, medication, rehabilitation, and ongoing care.
It’s important to wait until you’ve reached maximum medical improvement (MMI)—the point at which your condition is stable, and no further recovery is expected—before accepting a settlement. Settling too early may result in insufficient funds to cover worsening health conditions or unforeseen medical needs.
- State Approval of Settlements
In California, workers’ compensation settlements must be approved by a workers’ compensation judge to become official. During an informal hearing, the judge will review the settlement terms and supporting documentation to ensure the agreement is fair and in your best interest.
While most settlements are approved, especially if you’ve hired an experienced workers’ compensation attorney, the court’s oversight is a safeguard to prevent unfair agreements.
- Should You Accept a Settlement?
While a lump-sum settlement may seem appealing, especially when faced with financial pressures, it’s essential to carefully assess the offer. Insurance companies often make low initial settlement offers to save money, and accepting one without consulting an attorney can leave you without adequate compensation for your needs.
Before accepting a settlement, ask yourself:
- Does the amount fully cover your anticipated medical expenses, lost wages, and other damages?
- Have you reached maximum medical improvement?
- Are you prepared to forgo additional benefits in the future?
Consulting with an experienced workers’ compensation attorney is crucial to ensure the settlement aligns with your long-term interests.
CALL OUR ATTORNEYS FOR A FREE NO-OBLIGATION CONSULTATION
(213) 213-0000
E&L, LLP Is Here to Help
At E&L, LLP, we understand the complexities of workers’ compensation settlements. Our attorneys are committed to helping you navigate the process, evaluate settlement offers, and negotiate for the maximum compensation you deserve.
We work on a contingency-fee basis, meaning you won’t pay any fees or expenses unless we win your case. Let us fight for your rights while you focus on your recovery.
We Don’t Get Paid Until You Get Paid
At E&L, LLP, your success is our priority. Reach out today to discuss your case and learn more about how we can help you secure the workers’ compensation settlement you deserve.
CALL OUR ATTORNEYS FOR A FREE NO-OBLIGATION CONSULTATION
(213) 213-0000
WE DO NOT GET PAID UNTIL YOU GET PAID. THAT IS OUR GUARANTEE.
