It is possible to settle your workers’ compensation case. This involves the employer or insurance carrier paying you a lump sum amount of money in exchange for you giving up your right to wages and/or medical benefits. A settlement of wages means that you will no longer receive your weekly or bi-weekly wage benefits in exchange for a lump sum of money. A settlement of your medical benefits means that you will no longer be entitled to have the workers’ compensation insurance carrier pay for ongoing medical treatment in exchange for a lump sum of money.

The amount of the settlement you are able to obtain depends upon your average weekly wage and weekly compensation rate, the extent of your medical treatment and the strength of your case, if you are in litigation before a Workers’ Compensation Judge.

Settlements of workers’ compensation cases are accomplished through negotiations with the insurance company. Your attorney will write a demand letter asking for a certain amount of money to settle your case. The insurance carrier will respond with an offer which is less than the demand amount. Negotiations take place over a period of time and a mutually agreeable dollar amount is reached. If you are unable to agree on the settlement amount, negotiations stop.

If you are able to reach an agreement, a Compromise & Release Agreement is prepared. A petition is filed and you must appear before a Judge to have the settlement approved. The Workers’ Compensation Judge must determine with very brief testimony that you understand the terms of the Compromise & Release Agreement and its legal effects upon your workers’ compensation benefits.