When Will I Get a Settlement Offer From Workers’ Comp?
Learn when you’re most likely to get a settlement offer from workers’ comp and how to know if you should accept it
Injured on the job in South Carolina? The road to recovery is often paved with uncertainty, especially when it comes to workers’ compensation settlements. The question of “if” and “when” a settlement might come and whether it’s the right move for you can feel like a daunting puzzle.
This article aims to be your guide, shedding light on when and why workers’ comp settlements are typically offered, how they’re calculated, and the pivotal decision of whether to accept or fight for more in court.
If you have additional questions or want help negotiating a fair workers’ comp settlement in your case, reach out to the experienced Columbia workers’ compensation attorneys at Smith, Born, Leventis, Taylor & Vega to schedule a free consultation.
Why does workers’ comp typically offer a settlement?
Workers’ compensation insurance companies may choose to offer settlements for a variety of reasons, including:
- To reduce their financial risk. Settlements allow insurers to limit their long-term financial liability. Instead of potentially paying out benefits for years or even a lifetime, they make a one-time payment to close the case.
- To avoid uncertainty in court. If the outcome of a trial is uncertain, the insurer may prefer to settle to avoid the risk of a larger payout if they lose in court.
- To avoid litigation costs. Going to trial can be expensive and time-consuming for both the insurer and the injured worker. A settlement allows both parties to avoid these costs and can be a way to reach a compromise they both find acceptable, even if it means neither side gets everything they want.
- To close the case. Most insurance companies prefer to close cases and move on. A settlement provides finality, preventing future disputes or claims related to the injury.
It’s important to remember that while a settlement may seem like a good option, it’s crucial to carefully weigh the pros and cons before accepting.
A settlement typically means you forfeit your right to any future benefits related to your injury, so you should always consult with an attorney to ensure you’re getting a fair settlement that meets your future financial needs.
Is a settlement better than going to court?
Whether it’s better for an injured worker to settle their case or go to court depends on a number of factors, and there’s no one-size-fits-all answer. But generally speaking, the biggest advantage to settlements is that they typically provide a faster, less stressful resolution with a guaranteed payout.
Accepting a settlement also eliminates the uncertainty and potential delays of court proceedings, offering injured workers immediate access to funds for medical expenses and lost wages. This can be particularly beneficial for those with immediate financial needs who prefer to avoid the emotional toll of litigation.
However, settlements may not always be the best option. Going to court allows for the possibility of a higher compensation award if the case is strong, and it can ensure all future medical needs are covered. While court cases can be lengthy and stressful, the potential for a larger payout and greater justice may outweigh the drawbacks for some injured workers.
Ultimately, the decision to settle or go to court should be made after careful consideration of individual circumstances and consultation with a legal professional.
Lump Sum Settlements vs. Structured Workers’ Comp Payments:
Understanding Your Options
A guide to help you understand the pros and cons of lump sum and structured workers’ comp settlements.
When will workers’ comp offer a settlement?
While a settlement offer can happen at any time, there are typically a few key points in the claims process when workers’ comp is more likely to offer a settlement. They include:
- After reaching maximum medical improvement (MMI). This is when your doctor determines that your condition has stabilized and further medical treatment is unlikely to significantly improve your health or functionality. At this point, the insurance company can better assess your long-term medical needs and potential costs.
- Before trial during mediation. As the trial date approaches, both parties may seek to avoid the uncertainties and expenses of a court case. Mediation provides an opportunity to negotiate a settlement agreement that benefits both the injured worker and the insurance company.
- When disputes arise. If there are disagreements about the extent of the injury, the need for future medical care, or the worker’s ability to return to work, a settlement might be offered to resolve these disputes without going to court. This allows the insurer to close the case and move on, reducing ongoing administrative and legal costs.
Because accepting a settlement amount is final, it’s crucial to discuss any offer with an experienced workers’ compensation attorney before accepting it so they can help you evaluate the offer and negotiate better terms, if necessary.
How are workers’ comp settlements calculated in South Carolina?
Workers’ comp settlements in South Carolina are calculated based on several factors, including the severity of the injury, the extent of disability, and future medical needs. Here’s an overview of what’s included and how it’s calculated:
- Medical expenses. This includes all past and future medical costs related to the injury, such as doctor visits, hospital stays, surgeries, medications, physical therapy, and any necessary medical equipment.
- Lost wages. Compensation for lost wages is calculated based on the worker’s average weekly wage (AWW) prior to the injury. This includes wages, bonuses, and overtime pay. The benefit amount is typically two-thirds of the AWW, up to a state-mandated maximum.
- Permanent disability. If the injury results in permanent disability, the worker may be entitled to compensation based on the extent of the disability. This is determined through an impairment rating provided by a medical professional.
- Permanent partial disability (PPD). If you have a permanent impairment but can still work, you’ll receive PPD benefits, calculated by multiplying your compensation rate by the number of weeks allotted for your specific injury under South Carolina’s schedule of injuries.
- Permanent total disability (PTD). If you’re permanently unable to work, you’ll receive PTD benefits, which are typically paid for up to 500 weeks but may be extended to life-long payments in cases involving certain catastrophic injuries like paralysis or severe brain damage.
- Vocational rehabilitation. If the worker cannot return to their previous job, the settlement may include costs for vocational rehabilitation to help them train for and find new employment.
Calculating a workers’ comp settlement in South Carolina involves assessing medical expenses, lost wages, and the extent of any permanent disability. It’s important to work with an experienced workers’ compensation attorney to ensure that all factors are accurately considered so you can negotiate the best possible settlement.
Understanding the Types of Workers’ Compensation Benefits
Learn about the different types of medical and financial benefits available to injured SC employees so you understand how much your claim is worth.
Can the IRS take my workers’ comp settlement?
No, the IRS cannot take your workers’ compensation settlement.
Workers’ compensation benefits, including settlements, are generally exempt from federal income tax, and as such, the IRS does not have the authority to seize these funds for tax purposes.
This includes both lump sum settlements and structured periodic payments received as part of a workers’ compensation claim.
How long does it take to get paid after a workers’ comp settlement is reached in SC?
After a workers’ comp settlement is reached in South Carolina, it typically takes about a month to receive a settlement check. The settlement agreement must first be approved by the South Carolina Workers’ Compensation Commission before the insurance company issues payment, and it’s not uncommon for this process to take a few weeks.
If you’ve been waiting for more than a couple of months to receive your settlement check, it’s best to reach out to your attorney.
Need help negotiating a fair workers’ comp settlement in Columbia?
If you were injured at work in South Carolina and are unsure about the settlement offer you’ve received or have questions about the value of your claim, don’t hesitate to seek professional guidance.
Remember, the decisions you make now can have a significant impact on your financial future and your ability to recover from your injuries. Especially in cases of catastrophic injuries that prevent you from returning to work, it’s crucial to ensure you’re receiving the maximum compensation you’re entitled to.
At Smith, Born, Leventis, Taylor & Vega, our experienced Columbia workers’ compensation attorneys are dedicated to protecting the rights of injured workers. We understand the intricacies of the workers’ compensation system in South Carolina and can help you navigate the settlement process with confidence.
