Most workers’ compensation rulings throughout the U.S. states call for a settlement to employees who become permanently disabled due to Workers’ Compensation Settlement. This means that permanently disabled workers receive compensation for life.
A permanently disabled person is determined once an individual reaches their maximum level for medical improvement but remains physically incapable for performing the duties at the job once held. There are three types of workers’ compensation awards – stipulated finding and award, compromise and release and structured worker settlement.
What is a Stipulated Finding and Award?
Workers maintaining employment with the company where they were originally injured on the job are typically awarded a stipulated finding. The award based on the finding must be agreed upon by both parties voluntarily. The award calculation is dependent upon a doctor’s determination concerning the level of disability. It is calculated as a percentage. Additionally, the injuries suffered can be either temporary or permanent – and possibly both.
The employer can "stipulate" the injured worker seek and receive medical care with a provider of their choice. However, all injured workers receive medical care prior to any award settlement. Additionally, if at a future date the employee needs additional medical care for injuries sustained, the case is revisited.
What is Compromise and Release?
An employee receiving a "Compromise and Release" award will receive compensation far in excess of any mandated worker’s compensation settlement. The catch is that the injured worker is required to pay for any and all medical treatment that may be needed after the case has been closed. When the award is calculated, future medical costs are taken into consideration based upon opinions offered by qualified physicians concerning future medical needs.
The inured employee makes a Release, indemnifying the employer from any future financial liability. Additionally, if the employer offers a full-payment, up-front settlement the award can be reduced by three percent.
What is a Structured Workers’ Compensation Settlement?
A Structured Workers’ Compensation Settlement is similar to a Compromise and Release settlement since the injured worker has to release the employer from any future financial liability once the case has been closed. The difference lies in the fact that instead of receiving one full, up-front payment, injured employees receive periodic payments that may stretch out for several years.
This takes place in the form of an annuity that is purchased from an insurance company that acts as the vehicle for disbursing the installment payments to the injured party. The employer’s insurance company transfers payment obligations to the company issuing the annuity for the injured worker.
Always Consult with an Attorney
Since there are quite a few options for settlements open to injured workers from the state where they are employed – and these can be complicated and confusing – anyone seeking a fair settlement should always consult with an attorney. Employers will typically look to find a way that offers them the least amount of financial payment.
They may attempt to exert a bit of pressure trying to get an injured employee to take a low monetary offer when first presented. Therefore, consulting a law firm with ample workers’ compensation settlement experience would be a wise and prudent move to make sure your needs are well met.