A common question we have here at the Law Offices of David Zimmerman is if someone can get disability after settling their workers’ comp claim. The simple answer is yes, but there is potential for offsets with Long-Term Disability (LTD) or Social Security Disability Insurance (SSDI).
Lump-Sum Settlements
Instead of ongoing benefits, many of our clients choose a lump-sum settlement, so they can utilize the money for whatever they choose. This includes starting a business, paying off your debt, retiring, etc. The settlement is determined based on medical needs and expected disability.
Receiving Long-Term Disability After A Lump-Sum Settlement
While you can receive LTD benefits after a lump-sum settlement, most LTD policies will treat workers’ comp as other income, and reduce your LTD payments. We recommend you review the summary plan description for offset rules. We also recommend speaking to an experienced lawyer here to produce a well-structured settlement where we can help to reduce or avoid these offsets.
Receiving Social Security Disability Insurance After A Lump-Sum Settlement
While you are still eligible for Social Security Disability Insurance (SSDI) after your lump-sum settlement, there are also possible reductions. If total benefits exceed 80% of your prior average income, SSDI can be reduced. Here at the Law Offices of David Zimmerman we emphasize trying to minimize these reductions and help spread your settlement value over time to minimize the offset and protect your benefits.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
Michigan Workers’ Comp law, regardless of who is at fault, protects employees and employers in Michigan, aiming to cover all medical treatment and 80% of after-tax wages.
Lump-Sum Workers’ Compensation Settlements
Many of our clients choose to settle their workers’ comp into a one-time lump-sum cash payment, called a redemption. This redemption must be approved by a magistrate. In order to maximize this payout, we need strong medical and vocational evidence conveying the long-term impact of your work related injury. Here at the Law Offices of David Zimmerman, we excel at maximizing the lump-sum payout through building a case to improve your final outcome. Let’s dive in to see how we can maximize your case.
Evidence
Medical Evidence:
- Utilize private health insurance to continue treatment if your comp claim ends up being disputed
- Make sure your doctor is documenting your treatment, needs, and work restrictions
- Medical records conveying continuing disability that is directly related to your work injury boosts your settlement potential
Vocational Evidence:
Insurers will try and reduce your benefits based on what your theoretical job opportunities look like, and try to say you are only partially disabled.
- Challenge these reports in court
- Document and convey you have attempted a good-faith job search to convey you cannot realistically get hired
- Proving and conveying a limited employability will raise your case value
With the combination of documentation and our help here at the Law Offices of David Zimmerman, we can make sure you get the money you deserve.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
Common questions we face consist of:
Can I sue my employer for pain and suffering in Michigan?
What benefits am I entitled to under workers’ comp?
Let’s take a moment to walk through each.
Can I Sue My Employer for Pain and Suffering in Michigan?
No, because in Michigan, workers’ comp is considered to be your “exclusive remedy”. “Exclusive remedy” basically means you cannot file any separate lawsuit against your employer, including pain and suffering. The reason why Michigan has the exclusive remedy is because you are entitled to medical treatment, wage loss benefits, and vocational rehabilitation regardless of who was at fault for the injury.
Are There Any Exceptions?
There are two main exceptions we may see:
- You may have grounds to sue for additional damages if your employer does not have the required workers’ comp insurance.
- If your employer intentionally hurt you, you may have grounds for an intentional tort lawsuit.
What Benefits Am I Entitled To Under Michigan’s Workers’ Comp Law?
- Medical Care: This consists of all reasonable and necessary treatment for your work-related injury. Also, after 28 days, you can choose your own doctor. This benefit can last a lifetime.
- Wage Loss: You are entitled to 80% of your after-tax average weekly wage, which includes overtime, bonuses, lost fringe benefits, and income from second jobs. These payments may continue as long as you are disabled.
- Vocational Rehabilitation: This benefit comes into place with helping you to begin a new career through training, education, job placement and much more if you can’t go back to your original job.
Can I Sue My Employer If My Comp Claim Is Disputed Or Denied?
No, regardless of the outcome, you cannot sue your employer. However, you do have legal recourse, which consists of filing an Application for Mediation or Hearing, which initiates a formal process in front of a magistrate. This is where disputes over the benefits we have previously mentioned can be resolved. We see many of these cases and many end up being settled without having to go to trial.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
How Long Do I Have?
You have to report your work-related injury within 90 days of the injury, which can be done verbally, like simply telling your supervisor, or written through an accident report. We suggest writing an accident report, as writing is easier for keeping a copy of your records, and usually carries more weight.
We strongly recommend to report your injury immediately after the injury occurs. Late reporting gives insurance companies room to argue that the injury may be exaggerated or an the injury did not occur at work if you come back to work and do not report the injury, especially if the pain is reported days or weeks later.
From the original date of the work-related injury, you have 2 years to claim workers’ comp benefits. We strongly recommend for this to be in writing as well.
If your disability develops later or as a result of an injury over time, you can still file a claim.
This is a general overview of the timeframes involved in workers’ comp in Michigan, but if you have specific questions, we offer free consultations here at the Law Offices of David Zimmerman. Do not hesitate to reach out, the faster you act, the better.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
To begin, the simple answer is no. Like most things with taxes, there are a few important details to make yourself aware of.
You do not have to pay state or federal income taxes on the workers’ comp checks in Michigan because workers’ comp in Michigan was designed to replace part of your lost wages, specifically 80% of your after-tax average weekly wage. Since the weekly comp payments are based on after-tax earnings, the payments are considered tax-free.
What If I Settle for a Lump-Sum?
With many of our clients, individuals choose to take a lump-sum payment instead of continuing with weekly checks. Whether you want more control over your medical care, thinking about switching careers, or need some financial breathing room, the settlement payments are also tax-free in Michigan.
Other Taxes to Be Aware Of
Workers’ comp itself is not taxable, but other benefits you receive during the year might be. If you are receiving workers’ comp plus other types of income or benefits, it is a smart move to check in with a tax professional.
If you have any questions we’re here to help! Whether you are still recovering from an injury or thinking about settling your claim, we can walk you through your options.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
If you are receiving workers’ comp benefits, you may have the option to trade future benefit payments for a large one-time lump-sum settlement. The question is: is this the right decision for you?
We will dive into the pros and cons of deciding to reach a settlement, and explain how workers’ comp works.
Workers’ Compensation Settlements vs. Ongoing Benefits
Similar to other states, in Michigan, injured employees may qualify for workers’ comp after a work-related injury. These benefits include:
- Full coverage for medical treatment related to your work injury
- Wage loss benefits, equal to 80% of your after-tax weekly wages based on your highest-earning 39 weeks prior to your work-related injury
- Vocational rehabilitation services, if you are unable to return to your previous job
The alternative to these benefits listed above is reaching a lump-sum settlement. In Michigan, you can pursue a settlement as soon as six months after your injury, but it is recommended to wait until you reach Maximum Medical Improvement (MMI), which is the point at which your condition is stable and unlikely to improve further. Choosing to settle too early can result in an unfairly low payout. The lump-sum settlement is determined by multiple factors. These factors include your injury’s severity, expected recovery time, ability to return to work, essentially estimating your future expenses and combining them into one large, tax-free payment.
Why Would I Want to Settle My Workers’ Comp Case?
The potential benefits of a lump-sum settlement include:
- Tax-free cash payment
- Greater control over choosing your own medical care path
- No more independent medical exams (IME)
- Avoid the possibility of being harassed by the insurers
- Utilizing the money for retirement, transitioning to a new career, obtaining vocational retraining, or whatever you choose.
- Having the ability to accept another job without worrying about losing benefits
- Opening a new chapter in your life
Listed below are potential risks of settling your workers’ comp case:
- Settling before reaching MMI can potentially lead to an unfairly low compensation
- You give up the right to any future benefits, even if your condition gets worse
- No additional payments if your medical or financial needs increase later on
If you have any questions, call us at 1-866-464-2889 for a free case evaluation to learn about your legal rights.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
Understanding the Differences Between Workers’ Compensation and Personal Injury Settlements In Michigan
At our law firm, we talk to people every single day who are facing the fear, pain, and confusion that come after a workplace injury. We understand being injured at the workplace is so much more than simply missing work. It’s about supporting your family, covering medical bills, and trying to figure out what to do next. Most of our clients never expected to get injured on the job, and when it happens, questions and concerns begin piling up quickly.
How am I going to pay my bills while I recover? What happens if the insurance company denies my claim?
These are real worries people face each and every day, and you do not have to face them alone. Unfortunately, many of these concerns become amplified when insurers deny benefits. One of the most common sources of confusion our Michigan clients face is learning the difference between a workers’ compensation settlement and a personal injury settlement. If you have been injured on the job, understanding this distinction is crucial.
What Is Workers’ Compensation?
Workers’ comp, in Michigan, is a no-fault system. The no-fault system means benefits are provided to the injured employee regardless of who is at fault for the injury, even if it was your own. This is often a huge relief for our clients who blame themselves for what happened.
Workers’ comp benefits usually include a percentage of lost wages, coverage for medical treatment, and sometimes vocational rehabilitation services.
One important distinction and limitation of workers’ comp is workers’ comp does not cover pain and suffering. This comes as a surprise to many injured workers who are in constant pain or emotionally drained, learning those experiences are not a part of the compensation formula. This trade-off is part of the compromise where workers give up the right to sue their employer in exchange for guaranteed benefits.
Why Would I Want To Settle A Workers’ Comp Claim?
Many of our clients choose to settle their workers’ comp claim in exchange for a large lump-sum cash payment. Basically, this means giving up future benefits in return for a one-time big paycheck. The money received can be utilized for any purpose, typically for continuing medical care, education/job training, paying off debt, retirement planning, and more.
We often see our clients breathe a sigh of relief when a settlement is finalized because for many, it is the first time they feel like they can stop worrying about losing future payments, and focus on rebuilding their life or planning their next chapter. In some cases, depending on the severity of your injury, injured workers can even return to a different job after settling and still retain the full amount of the settlement, effectively being compensated for the disruption in their lives.
Workers’ Compensation vs. Personal Injury Settlements
The critical difference between workers’ comp and personal injury settlements in Michigan is you cannot sue your employer for pain and suffering, even if their negligence caused your injury. This is because of what is called the exclusive remedy provision in workers’ comp law, which means you are limited to the standard benefits of wage loss, medical care, and vocational rehab.
However, if a third party, someone other than your employer, was responsible for your injury, then you can pursue a personal injury lawsuit seeking additional damages, including but not limited to pain and suffering, and emotional distress.
An Example Of A Scenario Where You Could Pursue Both Workers’ Compensation and Personal Injury Settlements
One example of a situation where you may qualify for both is a work-related auto accident.
If you are injured in a car accident while working, you may receive workers’ comp benefits from your employer’s insurance and file a personal injury claim against the at-fault driver.
Another example would be faulty machinery or equipment.
If your injury was caused by an unsafe machine, or a defective piece of equipment, there is potentially a product liability case against the manufacturer of the faulty machinery or equipment. Any additional compensation from the product liability case would be in addition to your workers’ comp benefits.
Why Does It Matter to Understand the Difference Between Workers’ Compensation and Personal Injury Settlements
Learning and knowing the difference between workers’ comp and personal injury settlements could be the key to protecting your rights and getting the full financial support you need. If you are hurt, do not try to figure this out alone. We at the Law Offices of David Zimmerman do not want you to have to figure this out alone. We are here to help show you your options and fight for the outcome you deserve.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
How To Report A Work Related Injury and Protect Legal Rights
Many of our clients never imagined they would get injured at work. When it happens, they are often overwhelmed and unsure about how to report a workplace injury in Michigan. Will their employer be upset? Could they lose their job?
To help ease your uncertainty, here is a quick overview of the process and what you should expect along the way.
Michigan’s workers’ compensation law is in place to protect employees who are injured on the job. It covers medical expenses and lost wages, regardless of who was at fault. In return, employers are shielded from civil lawsuits. Workers’ comp is a form of insurance, not a handout or a shortcut.
It’s important to know that it’s illegal for employers to retaliate or discriminate against workers for asserting their rights under the law. Be aware of any negative changes in your job—such as demotion, pay cuts, shift changes, or termination—as these may be grounds for a separate legal claim and further compensation.
How Long Do I Have To Report A Work Related Injury?
In Michigan, you have up to 90 days to report a work-related injury. Verbal notice is legally sufficient, which means simply telling your manager or supervisor that you were injured on the job meets the requirement. However, we strongly recommend that you complete an accident report to create a written record of the injury. If your employer does not provide you a form, you can create and write one yourself. Avoid waiting to report your injury, even by a single shift. Waiting to notify your employer can raise red flags and give your employer reasons to question whether the injury actually happened at work. Unfortunately, some employers assume workers are trying to use workers’ comp as a way to get paid time off. While it may feel natural to wait and see how you feel, this can hurt your claim for workers’ comp. When in doubt, report your injury immediately. It is always better to be safe than sorry.
Make A Claim For Workers’ Compensation Benefits Within Two Years
Anyone who is looking to report a work-related injury in Michigan should also understand how to properly file a workers’ compensation claim. This step is necessary to receive coverage for medical treatment and lost wages. Under Michigan law, a claim must be made within two years of the workplace injury. Simply telling a supervisor or manager that you need to see a doctor under workers’ comp is enough to meet the legal requirement. Still, it is best to make the request in writing to avoid any possible dispute later. A simple email, or text message asking for medical care or wage-loss benefits will usually suffice.
Be aware and cautious with employers who try to avoid the formal claims process. Some employers may offer to cover your medical bills or lost wages “under the table” in exchange for not reporting the injury properly. This is an immediate red flag. These informal promises often fall through and can be used against you if you try and enforce your rights later. Always try and follow the proper procedure to protect yourself and your benefits.
What If My Employer Will Not Cooperate?
If your employer refuses to cooperate when you try to report a work-related injury in Michigan, you can take legal action on your own by filing an Employee’s Report of Claim with the State of Michigan. This form will start the workers’ compensation process, regardless of the involvement of your employer. Once the claim is filed, it becomes the responsibility of the employer’s insurance company to review the case and decide whether to approve or deny benefits.
Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation
Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.
