When dealing with the aftermath of a workplace injury, understanding your options regarding workers’ compensation settlements is crucial. One common question is whether you can return to work after receiving a lump sum settlement from workers’ compensation. The decision you make can have significant implications for your future, and a workers’ comp attorney can be instrumental in guiding you through this process. Contact PLBH at (800) 435-7542 for a legal consultation.
Can You Return to Work After a Lump Sum Settlement?
The possibility of returning to work after receiving a lump sum settlement from workers’ compensation largely depends on the insurer’s policies. Many insurers require employees to resign as a condition for receiving a lump sum settlement. The concern from the insurer’s perspective is the potential of having to pay for another workplace injury that they believe has already been covered by the settlement.
Why Insurers Hesitate on Lump Sum Settlements
In theory, there’s no requirement for you to resign to receive a lump sum settlement. Most states even have laws protecting workers from being fired due to a workplace injury or filing a workers’ comp claim. However, many insurance companies hesitate to offer a lump sum settlement if you plan to return to the same employer. This hesitation is rooted in the fear of potentially having to compensate for a re-aggravated injury that they believe has already been settled.
Understanding the Pros and Cons of Lump Sum Settlements
A lump sum settlement is designed to compensate you for future medical expenses related to your injury. Once the agreement is signed, the insurance company is absolved from further liability for medical care associated with that injury. However, if you return to the same employer and aggravate the old injury, the situation can become complicated for both parties, leading many insurers to insist on resignation as a condition for the settlement.
Types of Workers’ Compensation Settlements
There are two primary types of workers’ comp settlements: Compromise and Release, and Stipulation and Award. A compromise and release settlement pays a lump sum that represents all future costs for your injury, either in one full payment or a structured settlement over time. After this settlement, your workers’ comp claim ends, and you cannot reopen it if the amount proves inadequate.
Stipulation and Award: An Alternative to Lump Sum Settlements
If you wish to return to work, you might consider a stipulation and award settlement. This agreement does not require you to leave your job and covers all future medical expenses related to your injury. If your medical costs increase, the insurer will still be responsible for covering them, though you may need to reopen your claim.
Coverage of Workers’ Comp Settlements
A workers’ compensation settlement should cover lost wages and medical expenses. In some cases, it may also include attorney’s fees. Lost wages are typically compensated through temporary and permanent disability benefits. The amount usually represents a portion of your average weekly wage before the accident.
Partial vs. Total Disability
Workers’ compensation classifies disabilities as either partial or total, with temporary benefits turning into permanent ones when you reach maximum medical improvement (MMI). Total benefits cover all wages if you’re completely unable to work, while partial benefits cover wage reductions if you return to work in a lighter capacity.
Medical Bills Coverage
Injured workers are entitled to have their medical expenses covered by their employer’s workers’ comp insurer until the settlement. Post-settlement, if you choose a lump sum payment, subsequent medical expenses become your responsibility. However, with a stipulation and award settlement, the insurer continues to pay for medical care for the rest of your life.
Seeking Legal Assistance
Making the right decision regarding your workers’ compensation settlement and your ability to return to work is critical. By establishing an attorney-client relationship with a workers’ compensation lawyer from PLBH, you can navigate these decisions effectively. Whether it’s understanding the implications of different settlement types or negotiating the terms that best suit your needs, legal expertise is vital. Contact PLBH at (800) 435-7542 to ensure you receive the compensation you deserve while making informed decisions.