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.
Watch Out For Surveillance While On Workers’ Comp in Michigan
If you are receiving workers’ compensation in the State of Michigan, you should be aware that insurance companies may be watching you, literally. Many individuals do not realize that surveillance and activity checks are fairly common tactics utilized by insurance companies to deny claims or cut off benefits. Whether it is video evidence, social media posts, or neighbor interviews, insurers are looking for any possible excuse to argue that you are not truly disabled.
Here is some advice you should know to protect yourself.
Have We Had Insurance Companies Spy On Injured Workers In The Past?
Yes, we have had clients caught on video doing activities that their doctors have said they should not be doing. Some of these activities may include lifting heavy objects, doing yard work, or engaging in other physically demanding activities. We have seen routine activities such as grocery shopping and walking a dog. Problems arise if you are caught on video doing a physical activity that is inconsistent with your restrictions, which can be utilized out of context and presented in the worst possible light.
Can Social Media Hurt My Workers’ Comp Claim?
Unfortunately, yes. Claim adjusters actively monitor platforms such as Facebook, Instagram, YouTube, TikTok, and possibly more, looking for any signs that a person may not be as injured as claimed. Even innocent posts can arouse suspicion and trigger a benefits review or possibly a cut-off.
We advise to lock down or at least temporarily deactivate your social media accounts while you are receiving benefits, and never accept friend requests or messages from people you do not know.
What Can I Do While On Workers’ Comp?
You are allowed to do anything that does not conflict with your claimed disability or your doctor’s restrictions. You can attend family events, enjoy hobbies, go out in public, and engage in light activity as long as everything is consistent with your medical restrictions. Problems arise when an insurance company sees activities they perceive as proving you are no longer disabled, or as disabled as you say.
How Far Will An Insurance Company Investigate?
Surveillance can be much more than a one-time check. Private investigators can go to great lengths to gather evidence. Some of these lengths may include following you to doctor appointments, parking near your home in unmarked vehicles, filming you from a distance, looking into open garages, interviewing neighbors, and more. The tactics they utilize are designed to make you uncomfortable, or to scare you.
How Do I Protect Myself From The Private Investigators While On Workers’ Comp?
If you are on workers’ comp, here are a few simple tips to help stay protected. Do not perform any task that is outside of your medical restrictions, even briefly. Be aware of your surroundings while outside or in view of others. Avoid posting on any platform of social media. Be aware and watch for unfamiliar vehicles near your home. Try to not communicate with strangers online. Finally and most importantly, live your life, but do so with caution.
What Do I Do If My Workers’ Comp Benefits Are Cut Off Due To Surveillance Or A Private Investigation?
If your benefits have been denied or cut off due to surveillance or private investigations, do not panic. These decisions can often be challenged and reversed. Contact us at 1-866-464-2889 for a free consultation, and only pay if benefits are recovered.
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.
In most cases, you shouldn’t agree to a settlement until your doctor says that you’ve reached what’s usually called “maximum medical improvement” (MMI). This is the stage in your recovery when your condition has plateaued, and you’re not likely to improve with further treatment. In other words, you’re as good as you’re going to get.
The reason for waiting until this point is simple: You won’t be able to estimate the value of your case accurately until you know the full impact of your injuries. Will you be able to return to work? Will you have full use of your injured body part? Will you need future medical care? All of these questions must be answered before you can decide whether the settlement offer is fair.
In Michigan, for a severe injury, disability benefits will continue until you’re ready to return to work or reach MMI. If you settle your case before this point, you may be cutting your temporary disability benefits short, and the settlement offer might not account for the value of those benefits.
For many, it is surprising to learn how complicated it is to recover compensation for your damages caused by another individual or company’s negligence. One of the many important components to a worker’s compensation claim is proving the other party is at fault. Knowing what you need to do can be overwhelming, which is why you can hire an experienced and knowledgeable attorney from our law firm today.
When faced with a denied workers’ compensation claim, you first need to collect the relevant medical records and documentation to support the need for denied medical care. Then, you can enlist the help of a workers’ compensation attorney to assist with navigating the appeals process, advocating for medical benefits, and advising on increasing medical benefits through different coverage options. We understand how important it is for you to get the medical treatment you need after suffering a work-related injury. Call our law offices today to receive the assistance you deserve.
It is improper for your employer to terminate you because you have filed or may file a workers compensation claim in Michigan. Employers often refuse to contact their insurance company and advise injured workers to put the medical through your private health insurance. This is improper as well. If you sense that your employer is not turning your injury over to their workers compensation insurance company, or if they flat out tell you that they will not turn it over to their insurance company, call us for help immediately. 5869910600. This is happening more and more, and you may also have a separate claim against your employer for wrongful discharge or retaliatory discharge. Any of these scenarios are not normal and require the attention of an experienced workers compensation attorney.
