Learn how, when, and if you should settle your Pennsylvania workers’ compensation claim.
If you have a workers’ compensation claim, the insurance company will almost certainly contact you about a settlement at some time over the course of your case. Settlement is sometimes in a worker’s best interests. For example, you could choose to take a reasonable lump payment to avoid the headache of a workers’ compensation hearing. However, before you settle your lawsuit, you should be aware of the rights you are foregoing.
What Exactly Is a Workers’ Compensation Settlement?
Workers’ compensation settlements in Pennsylvania are legally known as “compromise and release agreements.” When you settle your claim, you usually give up your entitlement to all workers’ compensation benefits in return for a monetary payment.
The majority of settlements are paid in one big payment. However, if you suffer catastrophic injuries and need long-term care, the insurance company may agree to a structured payment. A structured settlement is paid out in installments. Payments may be made monthly, yearly, or every few years, depending on the conditions of your structured settlement.
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What Exactly Is a Commutation?
A lump amount may be obtained without consenting to a complete and final settlement. If you are already receiving workers’ compensation payments in Pennsylvania, you may request that they be paid in a lump amount. This is referred to as a “commutation of compensation.” To bring your total benefits to current value, they will often be discounted by 5%. You do not give up your other workers’ compensation benefits when you commutate (such as medical treatment).
When Will My Pennsylvania Workers’ Compensation Claim Be Resolved?
In Pennsylvania, you may settle your claim four months from the date of injury. However, while you are still recuperating, it might be difficult to accurately evaluate a settlement. That’s why most employees wait until they attain maximal medical improvement before settling their claims—when your doctor determines that your health is stable and will no longer improve with therapy.
Remember that when you settle your claim, you usually give up lifelong benefits. If you are unclear whether to settle, an expert workers’ compensation lawyer may assist you in weighing the rewards and dangers.
In Pennsylvania, how are settlements finalized?
Your workers’ compensation settlement must be approved by a workers’ compensation court. When you and the insurance company reach an agreement, the Pennsylvania Workers’ Compensation Office of Adjudication will establish a hearing date. You or your lawyer will submit a series of settlement agreements, including a Compromise and Release Agreement, during the hearing.
At the hearing, you will also testify, answering the judge’s questions on the terms of the settlement. The court will accept your settlement if he or she feels you comprehend what you are giving up and getting in return. If you do not have a workers’ compensation attorney, the court may analyze your settlement to verify that it is fair and reasonable.
Is it possible for me to change my mind?
Your settlement is complete and final once the court authorizes it. In other words, you are not permitted to reopen your claim or seek extra compensation. As a result, most injured employees consult with a workers’ compensation lawyer before settling. A Pennsylvania workers’ compensation lawyer can assist you in determining the worth of your claim, negotiating a reasonable payout, and ensuring that all settlement paperwork is correctly completed.
How Much Will I Be Awarded in a Settlement?
Every workers’ compensation claim is unique. As a result, the settlement value of your claim will be determined by a number of variables, including your pre-injury salary, the severity of your injuries, your capacity to return to work, and if there is contradicting evidence in your claim. In general, cases with greater earnings, significant medical costs, and strong supporting evidence have higher settlement values.
Certain objects will be taken out of your colony. These expenses may include the following, depending on the nature of your claim:
attorney’s fees and court expenses (For additional information, see our page on workers’ compensation attorney costs.)
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).