Resolving Your Kentucky Workers’ Compensation Case

Learn how, when, and if you should settle your Kentucky workers’ compensation claim.

The majority of Kentucky workers’ compensation cases are finally settled. The choice to settle is significant and personal. Before you give up your access to workers’ compensation payments, thoroughly assess the rewards and dangers involved. While a lump sum payout may assist you in paying your obligations and providing financial stability, a settlement also permanently ends your claim.

What Exactly Is a Workers’ Compensation Settlement?

When you settle a workers’ compensation claim, you give up certain rights in return for a monetary payment. The majority of settlements in Kentucky are paid in a single amount. In certain circumstances, though, settlements are paid out over time. For example, if you do not have a sufficient source of income, you may instead get weekly payments for a certain number of weeks.

Unlike in other jurisdictions, resolving a Kentucky workers’ compensation claim does not always mean the end of your case. If your health worsens within four years, you may seek extra compensation unless you expressly relinquish your right to reopen your workers’ compensation case in the settlement agreement. Similarly, unless you relinquish your entitlement to future medical care, your treatment will be paid by workers’ compensation even if you settle.

What Exactly Is a Lump Sum Request?

You may seek a lump sum payment if the insurance provider has approved your claim and is willingly paying compensation. Sometimes referred to as a “commutation,” this is effectively a benefit advance. In these cases, your weekly benefits will be totaled and then lowered by 1% to reflect their current value.

The Department of Workers’ Claims sets the discount % each year; you may examine the state’s settlement discount tables on the Department’s website. Contact a lawyer if you need assistance estimating the discounted worth of your benefits.

In Kentucky, how are settlements finalized?

The Kentucky Department of Workers’ Claims must approve all workers’ compensation agreements. To conclude a settlement, you must submit with the Department an Agreement as to Compensation and Order Approving Settlement. Various forms are utilized depending on the nature of your claim:

Workplace injuries (Form 110-I), occupational illnesses (Form 110-OD), black lung claims (Form 110-CWP), or mortality claims are all acceptable (Form 110-F).

These documents request information regarding your injuries, medical bills, earnings, the amount of the settlement, and the rights you are relinquishing. An administrative law judge will consider your settlement when the Department receives your signed agreement. Unless your settlement is manifestly unjust or irrational, the court will usually allow it.

How Much Will I Be Awarded in a Settlement?

The amount of your settlement is determined by numerous variables, including your pre-injury salary, your impairment rating, and your ability to return to work. Read our article on the various kinds and levels of workers’ compensation benefits in Kentucky to get a sense of how much you could be entitled to. However, the worth of your case will also be determined by other considerations, such as whether you have contradicting evidence. You will normally negotiate an extra fee if you are relinquishing certain rights (such as the ability to reopen or get future medical benefits).

Certain deductions will be made from your settlement cheque. These expenses may include the following, depending on the nature of your claim:

attorney’s fees and court expenses
medical costs that have not been paid, overdue child support, and a Medicare set-aside account (money to cover future medical expenses related to your work injury, which must be spent before Medicare will cover treatment).

Read our post on how much of your settlement you will get to retain to learn more about these deductions.

When Can I Resolve My Kentucky Workers’ Compensation Claim?

You may settle your workers’ compensation claim in Kentucky at any time. However, while you are still recuperating, it might be difficult to accurately evaluate a settlement. That’s why most employees wait to settle their claims until they attain maximal medical improvement—the point at which your doctor says that your health is stable and will no longer improve with therapy.

Furthermore, before you settle, you should consult with a Kentucky workers’ compensation lawyer. Unless your claim is really basic, calculating and negotiating a settlement on your own may result in expensive errors. An competent lawyer can assist you in obtaining a fair settlement and avoiding the loss of important rights. Read our article on Kentucky workers’ compensation attorney costs to find out how much this might cost you.