Michigan workers’ comp lawyer explains the settlement process and when to expect payment.
Employees hurt on-the-job are entitled to workers’ comp benefits regardless of their fault. This includes payment of medical bills, a percentage of lost wages, and vocational rehabilitation services. A lump sum cash payment is also possible when a claim is redeemed. Here is some information about a workers’ comp settlement disbursement and when to expect a check.
Settlement is a good option for people who want to give up their job and do not want to deal with the insurance company anymore. How much is paid for settlement depends upon future medical needs and length of disability. Age, education, and transferable skills also play important roles. We recommend speaking with an experienced workers’ comp lawyer before a payment amount is discussed to ensure maximum dollars are paid.
Settlement money can be used for any purpose including medical treatment, job search efforts, vocational retraining, starting a business, paying off debt, or retirement. Settlement money is income tax free. Attorney fees are limited to just 10% when workers’ comp benefits are being paid voluntarily. Attorney fees are 15% of the first $25,000 and 10% on the remainder when there is a dispute.
What is a settlement disbursement?
Workers’ comp settlement must be approved at a redemption hearing. This is when a magistrate reviews medical evidence and decides if payment amount is appropriate. There is a 15-day appeal period that must expire before money is paid out. Settlement disbursement will be outlined in a redemption order.
Items that are typically listed on a redemption order include: Name, address, and social security number of the employee; information regarding the employer and its insurance company; all dates of injury; attorney costs and fees, total settlement amount and net payment to employee after direct payments; whether weekly benefits will continue and for how long; Social Security Administration information.
Will a settlement disbursement be paid in cash or a check?
Settlement disbursement typically occurs within two weeks after the appeal period expires. A settlement check will be sent via regular mail to a person’s home address listed on the redemption order. Michigan law requires settlement to be paid using paper check. It is not possible to get settlement money in cash.
Delays happens when workers’ comp settlement checks sit on a desk at the insurance company waiting for signature. Unfortunately, there are no penalties for late payments so keep on top of the insurance company. We recommend following up with your attorney if the payment has not occurred within two weeks of it becoming due.
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 (844) 316-8033 for a free consultation today.