Learn how our experienced Georgia workers’ comp attorneys can help negotiate
or resolve a lien
If you have been injured at work and need to file a workers’ compensation claim in Georgia, you might be surprised to learn that a portion of your settlement may actually be issued to the insurance company. This is due to something known as a “lien”.
If your workers’ compensation case involves a lien, your best chance for resolving it is by using an experienced lawyer who can walk with you through this complicated process.
What is a workers’ compensation lien?
Many people don’t realize that they may actually have 2 completely separate cases when they experience an injury at work.
How does this happen?
Let’s take a look at an example.
Suppose you are traveling for work when you are involved in a vehicle accident through no fault of your own. You are injured as a result of the accident.
In this example, you would likely have 2 separate cases.
First, you would have a workers’ comp case because you were injured while involved in an occupational capacity. Second, you would also have a case against the driver who caused the accident.
Workers’ compensation in Georgia covers medical benefits, temporary total disability and permanent partial disability.
- Temporary total disability is what a worker is paid when they are temporarily unable to work due to their injuries. These benefits are typically two-thirds of your average weekly wage (AWW). Your AWW is determined by finding the average rate of what your gross pay was during the year prior to your injury.
- Permanent partial disability refers to benefits that are paid at the conclusion of the case. These benefits vary based on the severity of the worker’s injury as well as the part of the body affected by the injury, any related restrictions, the worker’s age, wage rate and job description.
While workers’ compensation does not pay for non-economic damages like pain and suffering, in the example above, you might be able to recoup these benefits as part of your case against the driver responsible for the auto accident.
In fact, compensation for the pain and suffering can involve a significant amount of money. For this reason, it’s typically advisable if you’re facing a 2-case scenario to consult with an attorney who is experienced in handling workers’ compensation cases as well as personal injury cases.
There may be 2 possible options for you in this example.
One option would be to first settle the workers’ compensation case and then move on to settle the case against the insurance company of the at-fault driver. Another option would be to do nothing with the workers’ compensation case and instead focus on settling the case with the at-fault driver.
If the first option is used, a workers’ comp lien may arise.
A workers’ comp lien is the legal right the workers’ compensation company has to file against any financial compensation you receive from the second case (the case you have against the insurance company of the at-fault driver).
For instance, suppose you receive a total of $100,000 as part of your workers’ compensation benefits. This includes total temporary disability payments as well as medical payments. Now, suppose that you received a $200,000 settlement from the case involving the at-fault driver.
Does this mean that you are allowed to keep the full $300,000?
Probably not. The reason is due to the workers’ compensation lien. In other words, the workers’ compensation insurance company is not going to allow you to essentially “double-dip.” If you receive a payment from the personal injury case, you will be required to pay back any benefits you received from the workers’ compensation company.
In this example, you would be required to pay back at least a portion of the money you received from the workers’ compensation case. In the event you have retained an attorney, you would also be responsible for paying your attorney’s fees along with expenses, such as depositions, medical records, filing fees, etc.
If this seems confusing, it’s because workers’ compensation liens are confusing.
In most instances, it’s best to consult with an attorney who’s experienced in handling workers’ comp lien resolution for help negotiating your claim.
How do I negotiate a workers’ comp lien?
Knowing how to negotiate a workers’ comp lien is critical for securing your financial and physical recovery while also safeguarding your future workers’ comp benefits.
Below are some key points workers should be aware of when negotiating:
- Understand the lien. Firstly, it’s crucial for workers to understand how the lien amount was determined so they can assess whether it accurately reflects the benefits they received and directly relates to the third-party recovery. If there are discrepancies or unrelated costs, these can be points of negotiation.
- Negotiate the reduction. Insurance companies may be willing to reduce the lien amount to facilitate the settlement of the personal injury claim. Presenting a clear case that details the extent of the injuries, the impact on the worker’s life, and the fairness of the compensation can aid in these negotiations.
- Include the apportionment of legal fees. Often, the workers’ comp insurance should contribute to the legal fees and expenses incurred in obtaining the third-party settlement. This means they may agree to reduce their lien by a proportionate amount to account for the attorney’s fees and costs.
- Consider settlement language. When reaching an agreement, ensure that the settlement documents clearly state the terms, including the agreed-upon reduction and the final amount to be repaid. Clear documentation can prevent future disputes.
- Understand the effect on future benefits. Consider how the settlement affects future workers’ comp benefits. Ensure that the agreement does not inadvertently terminate or reduce entitlement to future necessary medical treatment or wage loss benefits.
By understanding these key points, workers can be better equipped to negotiate a workers’ comp lien and ensure that they receive fair compensation for their injuries.
How can an attorney help with a workers’ compensation lien?
A workers’ compensation attorney is indispensable in negotiating a workers’ comp lien due to their specialized knowledge in work injury law and valuable experience in dealing with insurance companies, enabling them to effectively counteract attempts to minimize your settlement and argue for a fair reduction of the lien.
Moreover, a skilled workers’ comp attorney can help accurately calculate a fair settlement that accounts for all aspects of your case, including potential long-term impacts and future medical needs. They ensure that the workers’ comp insurer contributes a fair share toward legal fees and costs, thereby reducing the overall amount you owe.
Additionally, an attorney can safeguard your future benefits, draft clear and comprehensive settlement agreements, and provide peace of mind during a stressful period. Ultimately, having an experienced attorney by your side significantly increases the likelihood of a favorable outcome in both your workers’ comp and third-party personal injury claims.
Facing a workers’ comp lien in Atlanta?
We can help!
The reality is that workers’ comp liens are complicated, so it’s crucial to understand your rights before agreeing to any settlement. Our experienced Atlanta work injury attorneys can help to ensure you receive the maximum benefits due to you while also working with you to either negotiate or resolve a lien. At Gerber & Holder Workers’ Compensation Attorneys, we are trained and ready to fight for your rights.
