Workers compensation injury claims stem from a wide variety of circumstances. Some cases are reasonably simple injury claims where claimants will be able to return to work in full capacity doing the same job as before the injury, and some claimants will be required to return at another position or be unable to work in any capacity.
The latter cases are divided into two categories when the case is approved. Total inability to work is not uncommon in serious accident cases, but it usually results in a combined eligibility for both a workmans comp claim of some value along with a benefits claim with either a private pension fund or the Social Security Administration.
Types of Workers Comp Settlements
There are two primary types of disabled claims within the workmans comp program. Those two are temporary total disability and permanent partial disability. The workers’ compensation insurance protection program is designed to provide immediate medical care for injured workers while also providing replacement of lost wages during the recovery period.
Sometimes those recovery periods can be long term and even require retraining for some injured victims, which can complicate the case significantly in some instances.
Average Workers Comp Settlement Amount
Overall, the average employee gets around $20,000 for their payout. The typical range is anywhere from $2,000 to $40,000. Each case is unique in some fashion, and it begins with the amount of time the injured worker is unable to work along with the severity of the injury. In addition, rate of pay is also central to determining any settlement amount as well.
Some cases can include medical expenses for treatment required throughout the rehabilitation process, including physical therapy, but this depends on the method in which the medical bills are being paid. Some bills are paid immediately following the injury when the employer and respondent insurance company knows they are liable, and other medical care bills are not paid until the case is finally settled.
How Much Do You Pocket from the Settlement?
This amount also varies based on material case facts such as income and the nature of the injury. Most claims are maximized over a period of seven years when an injured employee cannot return to work during that period, but injury cases where the employer was also negligent in causing the injury could be settled differently.
A possible personal injury negligence lawsuit could allow for the potential of a trial that could result in punitive damages assigned to the employer, which no employer or their insurance provider wants to happen. These cases are often negotiated to a structured settlement that is paid in installment amounts over a set period of time while it also stops the punitive damage possibility.
These include cases where attorneys can prove the employer was in violation of any rules or regulations of the Occupational Safety and Health Administration. also known as OSHA, and when standard laws are broken during the work duty process.
Attorney Fee and Taxation Impact
Attorneys fees can impact the total take home amount in a comp case, and legal counselors work on a contingency fee in most workers compensation cases. Fees can range upwards to 25% for comp cases while being significantly higher in personal injury lawsuits.
However, it should be noted that studies have shown that injured employees receive approximately 30% more compensation when represented by a legal professional. Taxes can be an issue in some cases, but typically the settlement for an injury is not taxed unless it is determined as earned income.
Permanent Partial Disability
Workplace injury cases resulting in any level of physical impairment can become complicated. While some workers will not be totally disabled, they can still be determined partially disabled for the remainder of life.
However, Social Security Administration rules are different for younger workers, and those who cannot qualify for total permanent could be eligible for retraining at a different craft such as a sedentary work position with the company or another employer.
This situation is also one where a structured settlement arrangement can be made for those under 50 years of age. It is an established fact that age discrimination begins at age 50, and it is comprehensively applied by age 55 unless an employer is specifically looking for older workers.
Temporary Total Disability
Another classification of injured worker is temporary total disability. It means exactly that, and applies when a worker cannot work at all for a specified amount of time but has a prognosis for returning to employment at some position in the future.
Cases where an employee can return to work at a lower paying position could also establish a replacement wage allowance for the differential between the job pay rates. Any level of disability can impact how the claim finally works out, and those who choose to not retain a workers’ comp or personal injury attorney are often at a disadvantage when cases become legally complicated.
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When You Need a Lawyer
While the employees insurance system is set up to protect workers as soon as possible when injured, cases can be complicated when the respondent compensation insurance company is being difficult about paying benefits. These cases typically are settled in one lump sum payment, or even a lump sum with a monthly check for designated period following case settlement.
Each claim is different, which means that each settlement amount will be different as well. In addition, negotiating an equitable lump sum is best accomplished with a workplace injury attorney who is experienced in determining an appropriate compensation amount.
They are professional negotiators just like insurance company claims adjusters, and they have a professional understanding of the value of a workers comp claim where the injured claimant does not. Additionally, some workplace injury claims will also contain a degree of evidence proving negligence on the part of the employer, which means the case could also wind up in a standard state court as a personal injury general damages lawsuit.