Workers’ Comp Settlement Check Is Late: Now What?

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Administrative rule change needed to help with when a workers’ comp settlement check is late.

Workers' Comp Settlement Check Is Late: Now What?

Late payouts are a major problem in the Michigan work injury compensation system. Many of our clients have not received income for months and need financial relief. These individuals cannot put food on the table or pay rent. Lump sum cash payouts become the only viable option to get their life back on track. Here is some information about speeding up the redemption process and why penalties are needed for a workers’ comp settlement check that is late.

It can take up to eighteen months to litigate a disputed workers’ comp case. Magistrates do not even consider a case ripe for trial until twelve months have passed. Appeals can go on for several years afterwards. Most people cannot wait this long and want to settle now. The settlement process can be accomplished in a matter of weeks and payments can be mailed out immediately.

We understand and do everything possible to speed up payment. This includes asking a magistrate to approve the amount awarded before the next scheduled hearing date. All payouts must be approved by a magistrate and this can dramatically speed up the process. We also hound defense attorneys to get their clients to pay on time. But there is not much that can be done about a workers’ comp settlement check that is late.

Appeal period after redemption hearing

A lump sum cash payout is not final until fifteen days after the magistrate approves the redemption. This period allows both sides to request the amount be overturned. Payment should be mailed about two weeks after the amount becomes final.

A settlement cannot be overturned during the appeal period without good cause or a legal reason. Changing minds is not sufficient cause for either side. Finding out that a medical condition is much worse than previously believed could be a good justification.

It is possible to waive the fifteen day appeal period and have the check mailed immediately. Both sides must agree, and the Workers’ Disability Compensation Agency needs to sign off. This is usually accomplished with a telephone call after the redemption hearing.

Payment is supposed to be processed and mailed immediately following a fifteen day waiver. Some insurance companies ignore this requirement and still take thirty or more days to issue a check.

Penalties for a workers’ comp settlement check that is late

The administrative rules have no penalties for a workers’ comp settlement check that is late in Michigan. We recently had an insurance company take over two months to issue a draft. That is unacceptable when the appeal period has been waived.

Magistrates should be empowered to award penalties for when a workers’ comp settlement check is late. This would certainly get the attention of claims adjusters who are sitting on payouts.

Penalties of $50 per day, up to a maximum of $1,500, already exist for late payment of weekly checks. We think this administrative rule could easily be applied to settlements that are not paid within a reasonable period of becoming due.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled employees exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.

Related information:

Workers’ Comp Settlement and Medicaid: What You Need To Know

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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.