How Are Workers' Compensation Settlements Decided?

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If you have been hurt on the job, the workers' compensation insurer for your employer may offer you a settlement. Calculating a workers' compensation lump sum settlement involves various factors that are specific to your situation. The exact method of calculation can vary depending on the state and the workers' compensation laws in place. Read below for some common considerations that help decide on a lump sum settlement after a work accident.

• Nature and Extent of the Injury: The severity and extent of the injury are significant factors in determining the settlement amount. This includes the type of injury, the body parts affected, the level of impairment, and the impact on the worker's ability to perform their job or engage in daily activities.
• Medical Expenses: The cost of medical treatment, including past and anticipated future medical expenses, plays a crucial role in the settlement calculation. This may include hospital bills, doctor visits, surgeries, medications, rehabilitation, therapy, assistive devices, and ongoing care needed for the injury.
• Wage Loss: The impact of the injury on the injured worker's earning capacity is considered. If the injury results in a temporary or permanent disability that affects their ability to work or limits their earning potential, the lost wages or reduced earning capacity may be factored into the settlement amount.
• Permanent Disability Rating: In some states, a permanent disability rating is assigned by a medical professional based on the extent of impairment caused by the injury. This rating serves as a measure of the worker's permanent disability and is used to determine the compensation amount.
• Future Impairment: If there is evidence to suggest that the injury will lead to future medical treatment or worsen over time, the anticipated future impairment may be factored into the settlement calculation. This can include ongoing medical care, surgeries, therapy, or the need for assistive devices.
• Vocational Rehabilitation: If the injury limits the worker's ability to perform their previous job or necessitates vocational rehabilitation, the costs associated with vocational retraining or job placement services may be considered.
• Settlement Negotiations: Settlement negotiations between the injured worker, their attorney, and the workers' compensation insurer play a crucial role in determining the final settlement amount. Factors such as the strength of the claim, potential legal expenses, and the potential outcomes of a trial may influence the settlement offer.

Consult with a workers' compensation attorney to ensure that your rights are protected and that you receive a fair settlement for your workers' compensation claim. 

For more info, contact a local workers' compensation lawyer. 

6 July 2023