Settlements are usually how workers compensation cases in Michigan are resolved. About 95% of all cases are concluded with a redemption/settlement. The other 5% are trials or voluntary pay agreements. Voluntary pay agreements are when the injured employee returns to work for the same employer, where she/he was originally hurt or injured. Voluntary pay agreements calculate how much time the person missed, and any out of pocket expenses or mileage, and these owning monies are paid to the employee that has returned to work. This is often to referred to “a closed period.”
Now back to settlement/redemptions. We call them “redemptions” in the workers’ compensation area of law, but it is truly a full, final and complete settlement of all rights and claims. In Michigan, all benefits are usually closed with a redemption/settlement. Wage loss, and medical, are closed completely and forever. But don’t fear, after you settle a compensation case in Michigan you can go work anywhere, except for your former employer, you will sign a release that indicates that you will not reapply for work with them, as part of the settlement. Regarding medical benefits, after settlement, you can use Medicaid, Medicare or regular insurance through a new employer or through a spouse. We don’t have issues with people continuing to get treatment after a workers compensation settlement.
During law school at the University of Detroit Mercy, David Zimmerman clerked for 2 years, and you guessed it, he clerked for attorneys that practiced Workers’ Compensation Law. Adding all of it together, Mr. Zimmerman has 30 years of legal experience in the area of Workers Compensation.
Michigan Workers Compensation settlements are tax free. That is because the wages you receive are based on after tax amounts. The settlements are based on your workers compensation rate which is less than your gross amount you receive per week. The only exception is if you are receiving social security disability and your social security disability is being reduced because you are receiving weekly workers comp benefits. Then under the US Code, Comp is included with the partial SSDI benefits and all of it is taxed. Please keep in mind that SSDI is taxed. This seems to be the only time Michigan Workers Compensation is taxed. It must be bundled with the SSDI that you are receiving and receiving both at the same time.
The workers compensation settlement procedure is very complicated. It involves lost wages based on your workers compensation rate (not your full wages) and medical treatment, and occasionally vocational retraining. There is no pain and suffering allowed in Michigan Workers Compensation.
The settlements are usually based on 0 to 6 years of future wages at the workers compensation yearly rate. Take what you are being paid in workers compensation weekly and times that by 52 weeks in a year. This is your yearly rate.
In extreme circumstances we do get more than six years of benefits. If the medical is very expensive or the injury is preventing any type of sedentary work from being performed. There are about 20 variables to each settlement and I highly recommend that you speak to an attorney before you ever think about settling directly with the insurance company adjuster. They are not your friend.
LAW OFFICES OF DAVID ZIMMERMAN
42712 Van Dyke, Sterling Heights, MI 5869910600
4-6 Weeks is a General Guideline for Workers’ Compensation Settlements
Generally, it will take 4-6 weeks from the time the agreement is reached until there is money in your hands. Once the settlement is reached, the employers’ attorney will need to draft the settlement papers.
The contracts are then signed by the attorneys and the employee and then submitted to the Magistrate handling the matter for approval. This process can take a few weeks by the time checks are mailed out
1. They are not your friend.
2. They are not looking out for your medical needs.
3. Their job is get the doctor to return you to work ASAP.
4. Doctors do not like nurses or anyone else telling them how to do your job or suggesting they know better.
5. If the Doctor is harassed enough (when can he return to work, when can she return to work) he may return you to work before you are ready. It happens all the time.
6. If anything they are trying to save money for the insurance company by preventing testing and treatment, physical therapy etc…
7. Do not let them talk to your doctor outside your presence. They will try to get the doctor to switch his opinion on restrictions.
8. It is best to not let them talk to your doctor at all.
9. They will tell you the law is that they can legally talk to your doctor. That is just not true.
10. You have Hippa rights. You do not give those up. The claims adjuster has a right to get the medical records per the law, but not to orally discus the case.
11. If you have signed a release allowing them to talk to your doctor you can revolt that right you have given up.
12. Advise your doctor that you do not want them talking to the nurse manager or the adjuster. Tell the office staff as well.
13. Call my office ASAP once you feel your rights are being violated.
Law Offices of David Zimmerman
Are You Worried About What To Do If You Claim Has Been Stopped, Delayed, or Denied?
Have you been denied workers’ compensation benefits? Have your workers’ comp payments been delayed or stopped? The attorneys of the Law Offices of David Zimmerman can help. Attorney David Zimmerman is a trusted advocate who is known for going to bat for his clients and protecting their interests. He knows the tactics employers and workers’ compensation insurers use to avoid paying a claim and he knows how to handle them.