5 frequently asked questions about settlement

Call now for a free consultation
Available 24/7

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Get Help From our Michigan Workers’ Comp Lawyers Today
You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and we pride ourselves on providing you with care, trust, and responsiveness.

What do you need to know about settling your workers’ compensation case in Michigan?

We think settlement is an attractive option for many people on workers’ compensation. It gives them a fresh start and the insurance company will stop looking over their shoulder.

Individuals who settle workers’ compensation can seek medical treatment or vocation rehabilitation on their own terms. Some people just want to cash out and find a new job.

Thinking about settlement can be stressful. Here are some common questions and answers that can help you make an informed decision.

1. What is the average workers’ compensation settlement in Michigan?

Historical settlement data published by the WCA covers the time period from 1992 until 2015. The average settlement amount in 2015 was $59,209.41.

2. How are workers’ compensation settlements calculated?

Insurance companies view settlements as any other business decision. Does it make financial sense for the claim to be resolved with a lump sum cash payment? Settlements are based upon lost wages and medical treatment that could be owed in the future. A good workers’ compensation lawyer can help you maximize the amount paid.

3. Does settlement affect Social Security Disability Insurance (SSDI)?

Individuals on both workers’ compensation and SSDI are subject to an offset if combined benefits exceed 80% of average current earnings. It is possible to increase SSDI payments by settling a workers’ compensation claim and allocating this money over life expectancy. This generally eliminates any offset and puts more money in your pocket.

4. How much can a lawyer charge for a settlement?

Expect to pay 10% of your settlement if workers’ compensation benefits are being paid and no Application for Mediation or Hearing has been filed. This amount increases to 15% of the first $25,000.00 and 10% on the remainder if a case has been started.

5. Do you have to pay taxes on a workers’ compensation settlement?

Payments under workers’ compensation are income tax free. This includes lump sum cash settlements.

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:

Why your “wage earning capacity” matters under Michigan workers compensation

Photo courtesy of Creative Commons, by 401(K) 2013.

Leave a Reply

Your email address will not be published.

Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

Related Blog Posts

Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.