Michigan workers’ comp lawyer explains the settlement process and when to expect payment from the insurance company.
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 payment is also possible when a claim is settled. Here is some information about a Michigan 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. The amount awarded 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.
What is a settlement disbursement?
A settlement disbursement in a Michigan workers’ compensation case is the payment you receive after reaching an agreement, typically in a lump sum. This payment represents the final resolution of your claim and may include compensation for wage loss, medical expenses, and other benefits. Before the settlement is disbursed, certain deductions may be made, such as attorney fees, outstanding medical bills, or any liens from health insurance or government programs that paid for related treatment. Once those are deducted, the remaining amount is paid to you.
A 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.
Deductions and payments
A settlement disbursement in a Michigan workers’ compensation case typically involves several deductions before you receive your share of the funds. These deductions often include:
- Legal fees - A percentage of the settlement taken by your attorney as their contingency fee.
- Case expenses - filing fees and expert witness costs are reimbursed.
- Medical liens - These are paid to healthcare providers or agencies that covered your treatment.
After these payments, the remaining amount is disbursed to you.
How much are attorney fees?
Attorney fees are limited to just 15% when workers’ comp benefits are being paid voluntarily. Attorney fees are 20% of the first $100,000 and 15% on the remainder when there is a dispute.The amount awarded can be used for any purpose including medical treatment, job search efforts, vocational retraining, starting a business, paying off debt, or retirement.
Will a settlement disbursement be paid in cash or a check?
In Michigan, 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. State law requires settlement to be paid using paper check. It is not possible to get settlement money in cash.
Delays with disbursement happen when Michigan 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.
It is possible to waive the 15-day appeal period and get your money even faster. Check with an experienced attorney about this process.
Watch out for insurance companies who are do electronic transfers of the money awarded.. This is not the correct procedure, and things can go horribly wrong. We have seen people with closed bank accounts find the money awarded in limbo. Having a lawyer on your side should be able to prevent these problems from happening in the first place.
What is the typical timeline for claims resolution?
Settlements typically take 12 to 18 months to resolve, depending on the case complexity. Before an offer is made, you usually must reach maximum medical improvement (MMI), meaning your condition is stable. Once agreed upon, the settlement requires approval by a magistrate and a 15-day appeal period. If there are no appeals, the insurance company generally issues the settlement payment within 30 days. Consulting an experienced attorney can help ensure a smoother process and protect your rights.
Is the money awarded taxable?
Settlement money is income tax free.
Injured on the job in Michigan and need help with your workers' comp settlement disbursement? Contact our our attorneys for a free consultation!
If you were injured on the job in Michigan and have questions about a workers' comp settlement disbursement, 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 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 law firm has consistently secured the largest settlements in the state and is the best choice for your case. We never charge a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (855) 221-2667 for a free consultation today.
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