Redemption Order: Everything You Need To Know

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Michigan workers’ comp lawyer discusses the workers’ comp settlement process

Redemption Order: Everything You Need To Know

Many of our clients want to know about a workers’ comp settlement process and the redemption order. This is when workers’ comp benefits are traded for a lump sum cash payment and the claim ends. It is an attractive option for many people because it allows them to move on with their lives and get out from underneath the employer/insurance company.

Settlement money can be used for any purpose including medical treatment, vocational rehabilitation, job search efforts, starting a business, paying off debt, or retirement. How much is paid will depend upon factors like age, education, and injury. All settlements must be approved by a magistrate at a formal redemption hearing.

The magistrate will sign a redemption order at the conclusion of the hearing. This is a legal document that shows the total settlement amount and to whom checks must be issued. A redemption can be either approved or denied.

We suggest keeping this legal document in a safe place. It is proof of a workers’ comp settlement and has a breakdown of direct payments. There will also be an audio recording of the settlement hearing that can be obtained from the State of Michigan.

What is a redemption order?

Employees hurt on-the-job can trade workers’ comp benefits for a cash payment. A magistrate must approve the workers’ comp settlement at a hearing and sign a redemption order. This is a legal document showing the total settlement amount and to whom checks must be issued. We suggest keeping this legal document in a safe place.

Here are some items that are typically listed within the legal document and why they are important. This settlement document can be complicated, so we recommend speaking with an attorney whenever a workers’ comp settlement is contemplated.

1. Name, address, and social security number of the employee. This information will be used for identification purposes on the legal document. Watch out for small errors as this can complicate things.

2. Information regarding the employer and its insurance company. It is possible to have a claim against several different entities. Only those listed within the redemption order will be released from paying workers’ comp benefits.

3. All dates of injury that are covered by the document. Most insurance companies insist that payment of settlement resolves all possible workers’ comp claims.

4. Total settlement amount and net payment to employee. The amount paid for settlement will always be reduced by any attorney fees, costs, medical payments, liens, child support obligations, and state redemption fee.

5. Whether weekly benefits will continue and for how long. There is a 15-day appeal period before settlement is final. Wage loss benefits should continue to be paid during this period unless waived.

6. Social Security Administration information. This can help eliminate or minimize offsets by prorating the settlement amount over life expectancy.

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.

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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

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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.

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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.