When you are injured on the job, your employer should have a worker’s compensation policy to help cover your recovery costs. In some cases, workers’ compensation settlements can be difficult since some employers make it difficult to file claims.
However, you may be entitled to compensation if you are injured at work, and partnering with a workers’ compensation lawyer can help you collect that compensation regardless of how your employer behaves.
Rosenfeld Injury Lawyers works with employees who are injured on the job and need to seek a workers comp settlement. If you have a potential worker’s comp claim, discuss your situation with a lawyer. Read on to learn more about workers’ compensation settlements.
Average Workers’ Compensation Settlement Amount
The average workers’ comp settlement in the United States in 2021 was around $41,757 for all injury types. However, this varies tremendously based on the injury type. A work-related injury from a motor vehicle crash averaged $89,152, while burns averaged $52,161 [1].
This data also only reflects insurance payments. It doesn’t indicate whether an injured worker represented themselves or hired outside legal representation.
In general, giving someone an average estimate of a workers’ compensation settlement is impossible. That is because every case is different, and the factors in each case mean people can receive very different amounts for similar cases.
However, there are a few things you can look at to get an idea of what you can expect if you understand how the factors in each case affect the outcome.
We have helped our clients secure sizeable settlements both through workers’ compensation and third-party claims.
Warehouse injury recovery
Wrongful death settlement
Workplace chemical burn
Punch press injury lawsuit
Workplace ladder fall injury
Electrical shock work injury
Factors That Influence Workers’ Comp Settlement Size
There’s no guarantee on how much your workers’ compensation settlement will be, even if you’re found eligible for permanent total disability benefits. Even two similar injuries can end up with different settlement amounts. However, there are some factors we know influence how much you end up receiving.
The more serious your injuries are and the more medical care you need, the higher your settlement will likely be. The more significant the impact on your life and the more negligence your employer had for your safety, the bigger the potential settlement.
During your initial consultation with your workers’ compensation lawyer, you can discuss how much you can expect to receive for a case like yours.
Types of Workers’ Compensation Settlements
Injured workers can be awarded several types of worker’s compensation settlements. Each one has its advantages and should be considered in every case. Depending on your situation, you may find one option better than the other.
Lump Sum Settlement
A lump sum settlement provides you with all the compensation at one time. For example, if you receive $500,000, you receive all $500,000 in one payment.
The advantage of this is that you have the compensation in hand faster to pay for services you need to recover. Many injured employees avoid some of their required services or go into deep financial debt because they cannot afford the medical bills out of pocket. A lump sum payment can help prevent this by providing cash upfront to handle many of those bills.
The drawback is that it is all the money you will get from the case. If the services you need cost $600,000 and you only received $500,000 in the settlement, you must come up with the extra $100,000 through other means.
Structured Payments
A structured payment settlement divides your compensation into small segments and pays them in installments. For example, you could receive $500,000 in compensation structured into $100,000 annually. This system makes it easier for the liable party, like a business, to generate the funds to pay you rather than declaring bankruptcy because of a settlement.
The most significant advantage is that your structured payments can make it easier to pay for services over time. That way, you cannot spend all the money at once and make decisions based on your changing situation over time.
The drawback to a structured settlement is that you must wait for the next payout to receive more funding if you need it for recovery resources.
For example, if you need a medical procedure but need the next disbursement of compensation to afford it, then you have to delay it. Structured settlements are great for ensuring you have money over time, but you are limited in how much of that money you can spend over time.
Types of Potentially Recoverable Compensation
There are different types of compensation you might be able to recover in your workers’ compensation claim. What is available to you depends on the nature of your injury and what happened.
Economic Damages
Economic damages are financial losses directly related to your injury. These are expenses injured workers would not have had if they had not been injured. Some common economic damages in workers’ compensation settlements include:
- Medical expenses
- Cost of future medical care
- Lost wages
- Physical therapy costs
- Property damage
- Mental health care
- Physical therapy
- Occupational therapy
- Vocational services
Non-Economic Damages
Non-economic damages are not directly related to financial losses. Instead, these are related to the intangible aspects of workplace injuries, such as pain and suffering, emotional trauma, and loss of income potential. Typically, a judge will use a calculation to multiply the amount of your economic damages by the severity of these non-economic factors.
Punitive Damages
Punitive damages are extremely rare. This type of non-economic damage is used to punish employers who put their employees at risk and have dangerous operations endangering worker safety. When a judge assesses punitive damages, this can add a lot of compensation to your settlement.
Wrongful Death Claims
If your loved one dies from a work-related injury, you could be entitled to death benefits through your state’s workers’ compensation program.
For example, in Illinois, Illinois workers’ compensation benefits are paid for 25 years or $500,000, depending on which amount is greater. According to the Illinois Workers’ Compensation Commission, the minimum weekly benefits rate for death benefits is $715.42. However, the average weekly wage benefits are $1,430.84 [2].
How to File a Workers’ Compensation Claim
There is a process for filing a workers’ compensation claim, and it is important for you to follow it. Otherwise, you may experience more legal issues when claiming your compensation.
Within a few days, you need to report the injury to your employer. The HR department or company administrator must have a method of reporting the injury and filing a claim. Alternatively, you may need to file a workers’ comp claim with the state board, depending on your state.
From there, follow your employer’s instructions for the claim process. This may include going to a specific medical practice for evaluation and treatment. This is common since the insurance provider uses the medical report to evaluate a workplace injury.
You should hear back from your employer and/or the insurance provider about your claim. Before you accept or sign anything, it is important to review any offers with your lawyer to make sure you are offered fair compensation.
Ways a Workers’ Compensation Attorney Can Help
Hiring a workers’ compensation lawyer can make a difference in your workers’ compensation case. They can help relieve the financial burden of your work injury and advocate for injured employee rights in many ways.
Negotiate Settlements
Insurance companies have a vested interest in getting you to accept the lowest amount possible instead of a fair settlement, as companies want to minimize costs and improve profitability. Your lawyer can negotiate a fair settlement with the insurance provider that accurately compensates you for your medical bills and other expenses for your workplace injury.
Without solid negotiation skills, you would unlikely recover all of the benefits you’re entitled to. Sometimes, bringing a lawyer to the negotiation table is enough to signal to a workers’ compensation insurance company that you won’t settle for a low offer.
Advocate for Higher Settlement Amounts
Your workers’ compensation attorney will advocate for the highest settlement possible. Since your attorney works on a contingency fee basis, they only get paid when you get paid. The amount they are paid is a small percentage of the settlement. It is in their best interest to obtain the most money possible.
Serve as a Subject Matter Expert
A workers’ compensation attorney knows the workers’ compensation system. They have seen how much insurance companies have paid out on other claims for similar injuries, and they can use this information to help you.
As an injured worker, there’s a good chance you don’t understand how much your workers’ comp claim is worth. Your lawyer can use their knowledge of past cases to know how much to ask for. You don’t want to settle for less than your case is worth because you don’t know what other cases like yours receive.
Another way you can use your lawyer’s expertise is for guidance on the process. From filing the correct paperwork properly to navigating the negotiation process, having someone on your side who has gone through the process before is incredibly beneficial. This way, you can focus on your recovery while still making progress and staying informed of your workers’ compensation claim.
How Long Workers’ Compensation Settlements Take
Every workers’ compensation case is different, as is every state’s workers’ compensation system. If your case is complicated and requires going to court, you can expect it to take longer to settle. It could also take longer if your local court system is backed up and takes a long time to schedule your case.
Generally, most workers’ compensation settlements are reached within 12 to 18 months. When you discuss your case with your lawyer during your initial consultation, they can advise you on the current court scheduling timeframe. This can help to establish reasonable expectations for your next steps.
You may still receive some workers’ compensation payments during this time while your lawyer works to settle your case. This can be the case if you currently receive a weekly wage through workers’ compensation, but it isn’t enough to compensate for your medical care or future needs.
You can still collect benefits in these cases while waiting for your lawyer to work out your total settlement.
Do All Workers’ Compensation Cases End in a Settlement?
Not all workers’ compensation claims end in a settlement, though many do. The insurance company will likely pay out something for all credible claims, as it will not want to renege on its arrangement to provide weekly benefits. However, it may not be enough to achieve maximum medical improvement.
This is why having a lawyer who can preserve and advocate for injured employees’ rights is really important. Your lawyer will lead settlement negotiations and use medical evidence to demonstrate why you need more compensation for your injuries and future medical care.
It is also worth noting that not all cases are winnable. During your initial consultation, your lawyer will evaluate your case based on several criteria to see your legal options.
In some cases, you may not be able to recover a substantial settlement amount, but your lawyer will know this in advance. They may not be able to take your case or provide you with other options to move forward.
One example of why a case may not be able to move forward is when it is outside of the statute of limitations. Because the work injury happened so long ago, it might not be possible to build a strong case or file it with the court system.
Being Terminated While on Workers’ Comp
Whether it’s legal for your employer to terminate your employment while you are out on workers’ comp depends on many factors, including the state jurisdiction, the company’s size, and why they are terminating you.
Generally, your employer cannot terminate you for filing a worker’s compensation claim. This can be seen as a form of retaliation, and they can face additional legal troubles.
There are many valid reasons why an employer can terminate you after you file for worker’s compensation. This includes if the company closes your location, business demands change, or they go out of business.
Discuss what happened with your lawyer if you are terminated while receiving workers’ compensation. They can give you the best guidance regarding your potential next steps.
You may end up with the ability to file an unfair termination case against your employer in addition to trying to negotiate a workers’ compensation settlement. Other options might be available for reporting the retaliation through a local or state government office, depending on the state you live in.
Quitting Your Job While Receiving Active Workers’ Compensation Benefits
It is not a good idea to quit your job while receiving active workers’ compensation benefits, even if you have become totally disabled and will never reach maximum medical improvement.
You might still be eligible to receive compensation for medical treatment, future medical care, and other injured employees’ rights. However, it can significantly impact your case and your lawyer’s ability to succeed during settlement negotiations.
In most cases, you don’t have to work while recovering from a workplace injury. This should put any plans to quit your job on the back burner while you focus on your recovery.
Before making any drastic decisions about your employment status, discuss your plans with your attorney in advance. You never know the possible ramifications of these actions, and you wouldn’t want to hurt your legal case unknowingly.
Schedule a Consultation With a Workers’ Compensation Attorney
The good news is you don’t need to navigate the process of recovering your workers’ comp settlement alone. Rosenfeld Injury Lawyers helps injured workers receive fair workers’ compensation settlements for their injuries. We’re here to help you.
Contact us for a free consultation by filling out our contact form or calling toll-free at (888) 424-5757. A member of our team is available 24/7 to help you start your claim.
We work on a contingency fee basis, so you don’t have to worry about coming up with anything upfront to pay for our services. Instead, we’re compensated with a small percentage of your settlement. If we can’t obtain compensation for you, you won’t owe us anything for our services.
Resources: [1] NSC, [2] Illinois Workers Compensation Commission