How Long Does it Take to Receive a Workers’ Compensation Settlement?
The National Safety Council has reported that 75,000,000 US work days were lost due to injuries in 2022, not counting the day of the injury or time off for medical check-ups or physical therapy following the injured employees’ return to work.
Navigating the workers’ compensation process after an injury can feel overwhelming, especially when you’re relying on a settlement to help cover medical bills and for lost wage replacement. Of course, one of the most common questions that injured employees ask is how long it will take to receive a workers’ compensation settlement.
While every case is different, there several common factors that can influence the compensation timeline. Knowing these elements can help you maintain realistic expectations and be ready for whatever lies ahead.
Workers’ Compensation Settlements
Workers’ compensation provides financial support for employees who’ve suffered a job-related injury or illness. This typically includes coverage for your medical expenses, a portion of the wages you’ve lost, and ongoing compensation for any long-term disabilities.
When an employee reaches a settlement, it means both parties—usually yourself (the injured worker) and your employer’s insurance company—have agreed on the amount of compensation you’ll receive.
This settlement process can vary a great deal in length, depending on how complicated your case is, and the number (if any) of disputes that arise along the way.
Common Steps in the Settlement Process
To understand the timeline, it’s helpful to break down the steps involved in reaching a workers’ compensation settlement.
Filing the Initial Claim
Your first step is reporting your injury to your employer and filing a workers’ compensation claim.
Acting quickly in reporting your injury is critical, as waiting too long can delay the process or even jeopardize your claim. Once the claim is filed, an insurance claims adjuster will investigate and determine whether to approve or deny you benefits.
This initial phase usually takes a few weeks but can take longer if there are disputes about the injury or coverage.
Reaching Maximum Medical Improvement (MMI)
Before settling, most workers’ compensation cases require you to reach what’s known as maximum medical improvement (MMI). This is when your healthcare provider determines that the condition of your injury is unlikely to improve any further, even with treatment.
MMI is an important milestone because it helps establish the full extent of your injuries and the costs of your medical care. Reaching MMI can take anywhere from weeks to years, depending on the severity of your injury.
Negotiating a Settlement
Once you reach MMI, settlement negotiations begin. The insurance company evaluates your claim, taking into account medical records, lost wages, and any permanent disabilities. Both sides may negotiate to agree on a fair settlement amount.
Negotiations can last from a few weeks to several months, depending on the level of cooperation between parties and whether any disputes arise. In cases where the insurance company disputes the extent of your injuries or liability, negotiations may take significantly longer.
Court Approval of the Settlement
After both parties agree to a settlement, the agreement often needs to be reviewed and approved by a workers’ compensation judge. This step ensures that the settlement is fair and works in your best interest.
The court approval process typically takes a few weeks, but scheduling delays or incomplete paperwork can cause additional delays.
Factors That Can Affect the Timeline
The length of time it takes to receive a workers’ compensation settlement depends on several factors:
- The Severity of Your Injury: Typically, the more severe your injury is, the longer the recovery period is going to be and the more complex the medical evaluations. Both can delay your settlement.
- Disputes or Denials: If the insurance company denies your claim or disputes your level of disability, the process can be significantly delayed. Resolving these disputes may require additional medical examinations, depositions, or even a hearing before a workers’ compensation judge. Nearly 7% (350,000) workers’ compensation claims are initially denied. However, the Social Security Administration reports that 67% of claims that are originally denied are switched to paid claims within one year.
- State Laws: Each state has its own workers’ compensation rules and procedures, which can affect the timeline. For example, some states require mandatory waiting periods or have specific deadlines for filing claims and appeals.
- Cooperation Between Parties: If both sides are motivated to settle quickly, the process may move faster. However, disagreements over the settlement amount or terms can prolong negotiations.
When Will You Receive Your Settlement Check?
After the settlement is approved, you might wonder how long it will take to receive your check. Once the agreement is finalized, most states require the insurance company to issue payment within a certain timeframe, often 30 days.
Delays can occur if there are issues with processing or if additional documentation is required. To avoid unnecessary delays, ensure all forms are completed accurately and submitted on time.
3 Ways You Can Speed Up the Process
While some aspects of the workers’ compensation process are out of your control, there are some steps to avoid unnecessary delays:
- Report the Injury Promptly: Make sure that you notify your employer as soon as the injury happens and follow all of your company’s required reporting procedures.
- Work with Experienced Professionals: Hiring an attorney with experience in workers’ compensation law can streamline the process significantly, helping you to more quickly and efficiently resolve disputes.
- Stay Organized: Keep detailed records of medical treatments, lost wages, and any correspondence with the insurance company.
By being proactive, you can help ensure the process moves as quickly as possible.
When You Need Legal Assistance
If your case is taking longer than expected or if you encounter significant roadblocks, it may be time to seek legal advice. Workers’ compensation attorneys can advocate for your rights, negotiate on your behalf, and ensure you receive all of the full benefits you deserve.
In some cases, legal representation is essential, such as when the insurance company denies your claim, disputes your level of disability, or offers a settlement that isn’t enough to meet your needs.
An experienced legal professional can deal with these issues on your behalf, guiding you through the entire appeals process.
Final Thoughts
The time it takes to receive a workers’ compensation settlement varies widely based on factors like the severity of your injury, documentation disputes, and your local state laws. This process can be lengthy and feel even more so, but by understanding each step and staying proactive, you can navigate it more effectively.
If you feel overwhelmed or uncertain about your case, consider consulting with a workers’ compensation attorney. Their expertise can provide clarity and ensure your rights are protected, giving you the best chance of receiving a fair and timely settlement.