Why an administrative rule change is needed to help with the problem of late Michigan workers’ comp settlement checks and what a person can do to speed up the process.
Late payouts are a major problem in the Michigan workers’ comp system. Many of our clients have not received income for months and need financial relief now. These individuals cannot put food on the table or pay rent. Lump sum payouts become the only viable option to get their life back on track. Here is some information about speeding up the redemption process and why penalties are needed for a Michigan workers’ comp settlement check that is late.
We help speed up payment
It can take up to eighteen months to litigate a disputed workers’ comp case. Magistrates do not even consider a case ripe for trial until twelve months have passed. Appeals can go on for several years afterwards. Most people cannot wait this long and want to settle now. The settlement process can be accomplished in a matter of weeks and payments can be mailed out immediately.
We do everything possible to speed up payment. This includes asking a magistrate to approve the amount awarded before the next scheduled hearing date. We also hound defense attorneys to get their clients to pay on time. But there is not much else that can be done about a Michigan workers’ comp settlement check that is late.
Michigan workers’ comp settlement check timeline
In Michigan, an estimate on the timeline to receive a workers’ comp settlement check is 6-8 weeks. This includes negotiations (a couple days to a week), signing of documents, scheduling and having a redemption hearing, a 15 day appeal period (can be waived) and 7-10 days for the check to be sent through U.S mail.
Settlement can be a longer process if negotiations are slow or there are legal issues that must be resolved first. Delays happen when a Medicare Set-Aside must be prepared and/or submitted. Medical liens and unpaid bills can also add significant time. Our experience shows that once an amount has been agreed to between the parties, it goes much faster.
Appeal period after redemption hearing
A lump sum payout is not final until fifteen days after the magistrate approves the settlement. This period allows both sides to request the redemption be overturned. The Michigan workers’ comp settlement check should be mailed about two weeks after the case becomes final.
A settlement cannot be overturned during the appeal period without good cause or a legal reason. Changing minds is not sufficient cause for either side. Finding out that a medical condition is much worse than previously believed could be a good justification.
It is possible to waive the fifteen day appeal period and have the check mailed immediately. Both sides must agree, and the Workers’ Disability Compensation Agency needs to sign off. This is usually accomplished with a telephone call after the redemption hearing.
Payment is supposed to be processed and mailed immediately following a fifteen day waiver. Some insurance companies ignore this requirement and still take thirty or more days to issue a check. We recommend contacting the Agency should this occur.
Penalties for a Michigan workers’ comp settlement check that is late
The administrative rules have no penalties for payments that are lage. We recently had an insurance company take over two months to issue a draft. That is unacceptable when the appeal period has been waived.
Magistrates should be empowered to award penalties for late payments. This would certainly get the attention of claims adjusters who are sitting on payouts. While penalties are not strictly available, it is worth making the request to shake up the insurance company.
Penalties of $50 per day, up to a maximum of $1,500, already exist for late payment of weekly checks. We think this administrative rule could easily be applied to settlements that are not paid within a reasonable period of becoming due. We all need to put pressure on our legislators to make this important change happen!
Do you have questions about your Michigan workers’ comp settlement check and are wondering why it is late? Call our attorneys now for a free consultation!
If you were injured on the job in Michigan and you have questions about your workers’ comp settlement check and wondering why it is late, call now (855) 221-2667 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We’re here for you.
For more than 40 years, our lawyers have been helping people like you who have suffered from on the job injuries in Michigan. We understand the physical, emotional, and psychological hardships you are experiencing from your accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.
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.
Remember, every work injury claim and settlement is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.
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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