Redemption Order (Form WC-113)

Why the redemption order is so important and a list of items that will be included as part of your Michigan workers comp settlement.

A redemption hearing is the most important step in the settlement process. It is when a magistrate reviews medical records and hears reasons for settlement. The magistrate must be convinced that your legal rights have been explained and settlement is in your best interest.

The magistrate will sign a redemption order at the conclusion of the hearing. This is a legal document that shows the total settlement amount and to whom checks must be issued. A redemption can be either approved or denied.

We suggest keeping the redemption order in a safe place as it is considered a legal document. It is proof of settlement and has a breakdown of payouts. Here are some items that are typically listed on a redemption order and why they are important.

Name, address, and Social Security Number: This information will be used for identification purposes.

Information regarding your employer and its insurance carrier: It is possible to have a claim against several different insurance carriers. Only the entities listed on the redemption order will be released from paying benefits.

All dates of injury that are covered by the redemption: Most insurance carriers insist that a redemption order cover all dates of employment regardless of injury.

Total settlement amount: A settlement is always reduced by direct payments.

Amount payable to your attorney: The attorney fee is typically 15% of the first $25,000 and 10% on the remainder of any settlement. Sometimes the attorney fee is a flat 10% if benefits are being paid voluntarily. Costs must also be reimbursed and will come directly from the settlement.

Payments to medical providers: A settlement allows you to pay off medical bills and satisfy liens. A discount can usually be negotiated if you agree to pay directly out of a settlement.

Payments to Friend of the Court for child support obligations: Michigan law requires that unpaid obligations for child support be satisfied when a case is settled. This can be up to half your net settlement.

Redemption Fee: A redemption fee must be paid to the State of Michigan in the amount of $100. The employer or insurance carrier must also pay a redemption fee of $100.

The cost of annuity if applicable: Settlements can be paid as an immediate lump sum cash payment or over a period of time.

Whether weekly benefits will continue and for how long: There is a 15-day appeal period before a settlement is final. Benefits should continue to be paid during this period of time.

Total amount you will receive after all direct payments: The amount of your settlement is income tax free.

Social Security Administration Information: Avoid or minimize any offsets with Social Security by prorating settlement over your lifetime.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.

Related information:

Redemption Order (Form WC-113)

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