Settlement Disbursement: What You Need To Know

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Michigan workers’ comp lawyer explains the settlement process and when to expect payment.

Workers’ Comp Settlement Disbursement What You Need To Know

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 cash payment is also possible when a claim is redeemed. Here is some information about a 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. How much is paid for settlement 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.

Settlement money can be used for any purpose including medical treatment, job search efforts, vocational retraining, starting a business, paying off debt, or retirement. Settlement money is income tax free. Attorney fees are limited to just 10% when workers’ comp benefits are being paid voluntarily. Attorney fees are 15% of the first $25,000 and 10% on the remainder when there is a dispute.

What is a settlement disbursement?

Workers’ comp 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.

Will a settlement disbursement be paid in cash or a check?

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. Michigan law requires settlement to be paid using paper check. It is not possible to get settlement money in cash.

Delays happens when 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.

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

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.