If you’ve been injured on the job in Massachusetts and are receiving workers’ compensation benefits, you may be wondering when to begin negotiating and settle your workers’ compensation claim. Settling too early could cost you thousands in lost benefits—while waiting too long could delay or even prevent the settlement you may receive.
Attorney Charles S. Pappas has helped injured workers throughout Massachusetts get the workers’ compensation they deserve and make informed decisions about their cases. Attorney Pappas also advises injured workers when and how to settle their workers’ compensation claims. Below is a breakdown of some key considerations to help you understand your legal options.
Understanding Massachusetts Workers’ Compensation Settlements
Under the Massachusetts Workers’ Compensation Act, injured workers may be eligible for benefits after a work-related accident. The benefits available from workers’ compensation include:
- Medical Benefits to cover the cost and expenses of medical treatment.
- Temporary Total or Partial Disability to replace a portion of an injured worker’s lost wages.
- Permanent loss of function, disfigurement, or scarring benefits.
- Vocational rehabilitation services.
A workers’ compensation settlement—also known as a lump sum settlement—is a one-time payment made to resolve your claim. This payment includes a certain sum of future weekly disability checks made in a one-time lump sum amount. Once approved by an administrative judge at the Department of Industrial Accidents (DIA), a settlement typically ends your right to future weekly disability checks.
When Can You Legally Settle a Workers’ Comp Claim?
Generally, you can settle your workers’ compensation case in Massachusetts whenever the parties (the insurer, employer, and employee) agree and it’s approved by the DIA. However, most settlements are typically reached in workers’ compensation claims after the insurer has begun making payments of disability benefits and either accepted liability or liability has been established by a finding of an Administrative Judge at the DIA. Most often, settlements are reached during the dispute or litigation process at the DIA. This is because both parties (the insurer and employee) want to avoid the uncertainty of litigation. Nevertheless, timing is everything.
The Best Time to Settle a Workers’ Compensation Case in Massachusetts
Determining the best time to evaluate a claim for a lump sum settlement in a Massachusetts workers’ compensation case requires consideration of the following factors:
Have You Reached Maximum Medical Improvement (MMI)?
MMI means your condition is unlikely to improve with further treatment. Settling before this point can be risky—you may not know the full extent of your injury, disability, and need for future treatment. This can lead to underestimating the long-term disability of your injury and, thus, the value of your workers’ compensation case.
Do You Have a Clear Diagnosis and Prognosis?
You should have a full understanding of any permanent impairments or future limitations. This ensures your settlement reflects fair and reasonable compensation for your future lost earning capacity and any permanent loss of function. Remember, a lump sum settlement is a one-time payment of future weekly disability payments up front. During the evaluation and negotiation process, you should have a good understanding of how long you may be unable to return to work to earn wages.
Is the Workers’ Comp Insurance Company Disputing the Claim?
If your claim is being denied or disputed, a lump sum settlement may be a strategic way to avoid lengthy litigation at the DIA. You must also evaluate the strengths and weaknesses of your claim to determine if a settlement may avoid the uncertainty of future litigation. But don't settle for less than what your case is worth— an experienced Massachusetts workers’ compensation attorney can help evaluate your case and negotiate a better resolution.
Risks of Settling Your Workers’ Comp Case Too Early
After being injured on the job, you shouldn’t be too eager to reach a settlement. Settling a workers’ compensation claim prematurely can lead to an undervalued settlement and giving up your rights to any further disability benefits. It can also lead to inadequate coverage for future medical care if your injuries are not specifically diagnosed.
That’s why it’s critical to consult an experienced Massachusetts workers’ compensation attorney before negotiating or accepting any settlement offer.
Final Thoughts: Timing Is Everything
If you’re considering a lump sum settlement in your workers’ compensation claim in Massachusetts, don’t go through it alone. The timing of your decision can significantly affect your financial recovery. Attorney Chuck Pappas is available to help you determine the right time to settle—and make sure you walk away with the compensation you truly deserve.
A work accident isn't something most think about often until it happens to them. This is why injured workers typically have many questions and concerns after being seriously injured on the job. If you were hurt at work, you should have a good understanding of the workers’ compensation process and benefits available in Massachusetts. The experienced workers’ compensation lawyers at Mahaney & Pappas, LLP, are here to help you during this difficult time.