An outline of the Louisiana workers’ compensation settlement procedure.
If you have a workers’ compensation claim in Louisiana, you will most likely explore settlement at some time. A workers’ compensation settlement has several benefits, including the elimination of the need to engage with the workers’ compensation system, the receipt of a lump sum payment to pay your costs, and the avoidance of the uncertainty of a workers’ compensation hearing.
However, there are hazards to settling, so you should never agree to settle unless you know precisely what rights you are giving up.
Table of Contents
What Exactly Is a Workers’ Compensation Settlement?
In return for a settlement amount, you normally relinquish your rights to all workers’ compensation benefits, including disability and medical coverage. While insurance companies sometimes occasionally agree to more restricted settlements, such as leaving your medical coverage open, these are uncommon.
The majority of settlements are paid in a flat amount by insurance companies. In other circumstances, though, settlements are paid out in installments (called a “structured settlement”). Structured settlements, on the other hand, are quite uncommon and are normally only provided when you have severe injuries that need long-term care.
What Exactly Is a Commutation?
If you are currently receiving workers’ compensation payments, you might seek a lump sum payment instead of agreeing to a complete and final settlement. Your weekly rewards will be totaled and then reduced to arrive at their current worth (a 8% decline every year). This reduced lump amount, often known as a “commutation,” does not end your workers’ compensation claim.
Contact a Louisiana workers’ compensation lawyer if you need assistance assessing if a commutation or settlement is in your best interests.
When Will My Louisiana Workers’ Compensation Claim Be Resolved?
Unlike in many other jurisdictions, Louisiana’s workers’ compensation statutes strongly favor continuous benefits over lump sum payments. You may, however, settle your claim six months after your last temporary total disability payout. If you choose, you may skip the waiting time.
Most employees, however, do not settle until they have attained their maximal medical improvement (MMI). When your doctor determines that your condition is stable and unlikely to improve further with therapy, you reach MMI. It’s dangerous to settle a lawsuit before that stage because you could undervalue the advantages to which you’re entitled.
Settlement isn’t always in the best interests of the workers. Under some conditions, Louisiana workers’ compensation laws grant lifelong payments. If your claim has been approved by the insurance company and you have really significant injuries that need continuous medical treatment, you may be better off collecting continued compensation. A lump sum settlement may also be a poor decision if you struggle with budgeting and are worried about spending your payment too fast. A lawyer who is knowledgeable with the circumstances of your case can advise you on your best course of action.
How Much Will I Be Awarded in a Settlement?
To determine the settlement value of your claim, you must first establish the maximum amount of benefits that you might obtain. This covers the cost of future medical care, disability payments, vocational rehabilitation benefits, unpaid medical bills, and other benefits. (For more information on the kinds and amounts of benefits available in Louisiana, see our page on workers’ compensation benefits.) You would also need to evaluate any flaws in your claim, such as contradictory medical data on the degree of your handicap.
Choosing a reasonable settlement offer is a difficult task, and various additional variables might influence the worth of your case. Before agreeing to any payment, you should consult with a Louisiana workers’ compensation attorney.
What is taken out of my settlement check?
Generally, you do not have to pay state or federal income taxes on a workers’ compensation payout. Other costs, however, may be removed from your check. These expenses may include the following, depending on the nature of your claim:
attorney’s fees and court expenses (See our page on workers’ compensation attorney expenses.)
medical costs that have not been paid
child support owed, as well as 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.
How Can I Complete My Settlement?
Your settlement is not final until it is approved by a workers’ compensation court. Once you and the insurance company have reached an agreement, you must submit a number of paperwork with the Louisiana Office of Workers’ Compensation Administration (OWCA), including a Request for Compromise or Lump Sum Settlement (Form LWC-WC-1011).
If you do not have a lawyer, the court will set a hearing date. You will present your settlement and answer questions during this hearing. A hearing is usually not required if you have a workers’ compensation lawyer. Instead, you will sign an affidavit attesting to the fact that your lawyer adequately disclosed these terms to you and that you completely understand them. In any case, if the court feels your settlement is fair and reasonable, he or she will approve it.
Is it possible for me to change my mind?
Your settlement is official if a workers’ compensation court authorizes it. Even if your health suddenly worsens, you cannot reopen your claim and seek further compensation if you signed a complete and final release. The sole exception is that you may cancel the settlement if there is proof of insurance company fraud or deception. However, this is very difficult to show, and only a small percentage of settlements are reversed.
As a result, you should never make a hasty choice to settle. Never agree to a settlement until you are entirely satisfied with its conditions. And, before you settle, you should always contact with an expert Louisiana workers’ compensation lawyer. A lawyer can assist you in determining if a settlement is in your best interests.