Many Georgia employees believe that if they are injured at work, they are required to accept the settlement offered by their employer’s workers’ compensation insurance company. However, there are different types of worker’s comp settlements and a number of benefits that they can cover, depending on the type and severity of the injury. To schedule a free consultation, contact Morgan & Morgan today.

Why Retain a Workers’ Compensation Attorney Before Settling?

You have the right to negotiate the settlement. That’s why it’s highly beneficial to seek legal guidance before accepting any settlement. Sound legal guidance and representation could literally mean the difference between having the money to get the treatment and financial help you need both now and in the future, and being thrown into financial ruin.

At Morgan & Morgan, we understand that if you are dealing with a work-related injury or illness, your financial future may seem uncertain. Therefore, you may not feel that you can afford to hire an attorney. However, in addition to providing free initial consultation, if we take your case, you pay us a percentage of your benefits if and when you receive your benefits. That percentage is capped under the law at 25 percent.

Hiring a workers’ comp attorney doesn’t mean that you have to take the case before a judge. An experienced attorney can help you work with the insurance company to structure the settlement in the most advantageous way possible. At the Morgan & Morgan firm, we understand the fine print of these settlement agreements. We know that it’s easy for a few words to make a big difference in how much money an injured employee will receive. For example, sometimes settlements can reduce the amount of Social Security to which you are entitled.

Not All Settlements are Structured the Same

Worker’s comp settlements are generally made in lump-sum payments or in weekly payments. By agreeing to a settlement, you will likely have to give up the right to seek future benefits for the same injury. That’s why it’s important to get medical, as well as legal advice, on whether the ramifications of your injury could require medical care down the road.

It is important in many cases that the settlement remain open, or able to be reopened, to cover medical bills in the future. If your permanent disability rating from the injury is more than 10 percent, it’s key to ensure that the settlement you get will cover your medical and financial needs in the future.

Advantages of Accepting a Workers’ Comp Settlement

There are advantages to workers’ compensation settlements. Those can include the following:

• Going to trial could mean less money than the insurance company offered. The award amount is at the judge’s discretion in a workers’ comp hearing. This isn’t necessarily the norm, but it is a risk of going to trial.
• You could wait for a hearing for a long time, and it could be a difficult process. If you agree to a settlement, it can save time, anxiety, and hassle.
• Some areas don’t allow lump sum payments if you go to trial. Instead, you could be limited to a weekly payment for weeks, months, or even years.
• With a settlement, the insurance company could agree to pay additional money in exchange for you relinquishing your right to some future benefits. For example, if there’s a slight chance you might need future surgery, the insurance company might agree to pay a portion of that cost at settlement. You get the money, but you likely won’t need to use it for surgery, so you have a bit of a financial cushion.

Disadvantages of Accepting a Workers’ Comp Settlement

Just as there can be advantages to accepting a settlement, there can also be risks to taking a settlement. Those potential risks include:

• Some people agree to a lump-sum disability settlement and then spend the money immediately. That will leave them without weekly payments that would help to make up for decreased wages when they are still unable to earn as much due to disability.
• Future surgery or expensive medication possibilities could make it risky to give up the right to future payments for medical treatment to get a lump sum. If you end up with costly medical treatments later, you may not have enough money left from the settlement to cover the copays or deductibles you must pay.
• Taking a settlement could potentially reduce other benefits at a future date.

How a Workers’ Comp Settlement Is Reached

Before a settlement is reached and accepted, the employee should meet with their attorney to determine the workers’ comp settlement. The calculations need to account for previous and future medical costs. Here are some specific things to be considered during the calculation process.

• The total of medical bills; don’t forget the ambulance costs
• The chance of future treatment; consider surgery, physical therapy, occupational therapy, etc.
• Current or future wage losses
• Temporary or permanent disability payments
• Attorney fees
• State workers’ comp laws and other restrictions

After the employee and attorney complete their calculations, it’s time to negotiate with the insurance company regarding their claim. The final settlement is usually a compromise between the insurance company and the worker.

Often, a judge must review a workers’ compensation settlement proposal before it can be finalized. The judge’s job is to ensure that the settlement is fair for the employee. However, it’s a good idea to have an attorney represent you, so you fully understand the regulations and what you agree to regarding a settlement.

Once the settlement negotiations begin, your lawyer should take the reins of the negotiation process. You must maintain communication with your lawyer and the rest of your legal team.

You should be prepared for the settlement negotiations to take weeks or months to finish. While the process is moving forward, the employee must know what options are available for returning to work. Workers who are kept in the loop about settlement proceedings are less likely to sue their employers

The case will likely land in court if the parties can’t reach a settlement. A court proceeding can be risky for both sides of the process.

Reasons for Workers’ Comp Hearings

Two reasons can land a workers’ comp process in court.

1. If a claim is denied, the worker can file an appeal. Regulations vary depending on the state, and the injured worker can request an appeal hearing before a judge.
2. If the parties don’t settle or negotiate, they may decide to let the court decide what happens.

The workers’ comp trial is typically used to determine a fair settlement for the employees. Both sides present their positions regarding what they think is a fair settlement. The hearing judge will evaluate the case and determine a reasonable and appropriate settlement. The insurance company must abide by whatever the judge orders as fair for the settlement.

A workers’ compensation case going to trial is a risky undertaking. The risk is real for both the employee and the insurance company. The judge evaluates the case and determines what they think is a fair settlement. This settlement can be a bit smaller or larger than the insurance company originally offered.

The most important goal of a workers’ compensation settlement is to get the injured worker healthy and back to work as soon as possible.

Consult a Qualified Attorney to Help You Navigate Your Workers’ Compensation Claim

Under the law, work-related accidents must be reported within 30 days. If you wait longer than that, you may not be eligible for benefits. If you or a loved one has suffered a work-related injury and is seeking workers’ compensation benefits, call our lawyers in Athens, GA as soon as possible for a free consultation to find out how we can help you.

Related Content: Types of Worker’s Compensation Settlements

Original article revised on Jan 13, 2023

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Morgan Lawyers