Workers’ Comp Disability Settlement: What’s A Fair Offer?

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Workers' Comp Disability Settlement: What's A Fair Offer?

Michigan lawyer explains how to calculate a fair workers’ comp disability settlement and discusses the redemption hearing process.

Our job as lawyers is to make sure clients get a fair workers’ comp disability settlement. This can be difficult when insurance companies dispute valid claims and won’t pay. We see this frequently when clients are scheduled for an independent medical examination or post-injury wage earning capacity assessment. Here is some information about a workers’ comp disability settlement that everyone should know about.

Michigan Workers’ Comp Benefits

Michigan law protects employees hurt on-the-job. It guarantees payment of medical treatment, lost wages, and vocational rehabilitation. Workers’ comp benefits are paid regardless of fault, continue indefinitely, and are income-tax free.

Problems occur when insurance companies start playing games. This is done to save money and it always occurs at our client’s expense. Workers’ comp benefits are frequently cut-off based upon biased medical or vocational opinions. It is up to the disabled employee to challenge a dispute in court.

Workers’ Comp Disability Settlement

Settlement is an attractive option for many of our clients. It allows them to trade workers’ comp benefits for a lump sum cash payment. This money can be used for any purpose. Some clients just want to find a new job, pay off debt, or get on social security disability.

Insurance companies are also motivated to settle workers’ comp claims and close files. The amount offered for a workers’ comp disability settlement will depend upon several important factors. It must be a good business decision for the insurance company, and they cannot be forced to settle.

Here are some general guidelines to use when calculating settlement amount. Take the weekly comp rate and multiple it by 52. This gives a yearly figure that can be used for negotiation purposes. For example, someone who is getting $600 per week under workers’ comp should receive $31,200 per year. Insurance companies will typically not pay more than five years in cash. The value of future medical treatment can also be used to increase settlement value.

Watch out for insurance companies who negotiate using low figures that are based upon post-injury wage earning capacity. These assessments are typically wrong and should be challenged. An experienced workers’ comp lawyer can make sure the correct amount is paid.

Redemption Hearing

A workers’ comp disability settlement must also be approved by a magistrate at a redemption hearing. A determination will be made whether settlement is appropriate based upon facts and medical evidence. Settlement cannot be approved unless it is six months past the date of injury.

Individuals are usually required to give live testimony if they do not have a lawyer representing their interests. There is also a 15-day appeal period before a check is mailed. This time-period can be shortened if all parties agree.

We never recommend settling a workers’ comp case without speaking with a lawyer. Insurance companies make low-ball settlement offers because they know people are in financial distress. We also see individuals who lose out on social security disability or Medicare because the paperwork was not done correctly.

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.

Related information:

Facilitation Hearing Process Explained

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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.

"*" 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.