Work injury lawyer explains the workers’ comp settlement process and how to get the most amount of money.
Many of our clients want to know about the workers’ comp settlement process. They have usually exhausted treatment options and reached maximum medical improvement (MMI). This is a healing plateau where no further improvement is expected from additional interventions. Cashing out insurance benefits seems like a logical next step.
Getting hurt on-the-job can also result in severe financial problems. This is because the insurance only pays a fraction of an employee’s salary. Many people live paycheck-to-paycheck and even a small reduction of income can be devastating. This is a powerful incentive to settle and finish medical and vocational rehabilitation on your own timeline.
The money awarded can be used for any purpose including paying off debt, job retraining, starting a business, or retirement. Here is some information about value, negotiation, redemption hearing, and appeal period that everyone should know.
Workers’ Comp Settlement Process In 5 Steps
- Determining settlement value
- Negotiation
- Redemption Hearing
- Appeal period
Determining settlement value
The value is going to depend upon future medical needs and how long a person is expected to remain off work. The average amount in Michigan during calendar year 2022 was just $62,315.56. This is not a lot of money for a person who could have lifetime medical problems and/or permeant work restrictions. Generally, a case is worth between 1 and 5 years of wage loss benefits plus medical. It is no secret that injured workers who are represented by experienced lawyers get more money, so it is important to get a professional involved early in the process. Insurance companies know that represented individuals understand their legal rights and have the means to enforce them.
Negotiation
Insurance companies do not want to overpay, and they are ruthless in the workers’ comp settlement process. We have seen insurance companies hire private investigators to follow people just because they mentioned settlement. The negotiation for the amount must be treated like any other negotiation. Obtain medical and vocational evidence before negotiating anything. Expect the first settlement offer to be low and keep negotiating. We have seen first offers that are just pennies on the dollar. Hire a lawyer to negotiate and ensure the most amount of money is paid.
Redemption Hearing
All lump sump payout amounts must be approved by a magistrate. This happens at a redemption hearing and it is a key step in the process. Individuals are expected to present basic facts about their claim and provide medical records for review. There are also several complicated forms and affidavits that must be completed. The magistrate will decide whether the amount is appropriate under the circumstances.
Appeal Period
Once the lump sum payment amount has been approved by the magistrate, there is a 15-day appeal period. Either side can seek to reverse the workers’ comp settlement process based upon a legal reason or other good cause. The 15-day appeal period can be waived if both sides agree and everything becomes final immediately. Checks are sent by U.S. mail and typically arrive 7-10 days after.
Injured on the job and have questions about the workers’ comp settlement process? Call our attorneys now!
If you are injured on the job and have questions about your claim and the workers’ comp settlement process, call now to speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years. Our attorneys can help you better understand workers’ comp laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Michigan Workers’ Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled employees exclusively for more than 40 years. Call (855) 221-2667 for a free consultation today.
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