While many injured workers assume that their workers’ comp case will have to go to trial, this is an unlikely outcome; in fact, the typical workers’ comp claim will be settled through mediation instead. Recent estimates place the percentage of workers’ compensation cases that settle during mediation to be between 80 and 92% percent, depending on jurisdiction [1].
A workers’ compensation lawyer from Rosenfeld Injury Lawyers can guide you through the mediation process, ensuring that you receive a fair settlement from the insurance company and that your rights are protected throughout the proceedings.
What is Workers’ Compensation Mediation?
Workers’ comp mediation is when all parties commit to a voluntary process with a neutral mediator. The injured worker, their workers’ compensation attorney, and the insurance company will meet with a neutral individual to achieve a successful resolution of the case that satisfies all disputing parties.
Mediation is typically the next step after negotiation, and it is different from other ways to settle workers’ compensation claims, such as arbitration or a lawsuit.
In arbitration, the two parties present evidence during a formal hearing before an arbitrator, typically a former workers’ comp judge or attorney, who then makes a legally binding judgment. In a lawsuit, a jury will determine an adequate settlement regardless of whether the parties agree with that sum.
Mediation may be combined with settlement conferences, which are more based on facts and specific sums. A settlement conference in a workers’ compensation case is more formal and is presented in front of a judge who will not preside over a trial. In contrast, mediation is about resolving disputes and reaching a mutually satisfying settlement agreement.
Benefits of Mediation
When cases are settled through mediation, workers are spared the difficulties and expense of trial, and they often receive their workers’ comp benefits faster than they would through a lawsuit. Additionally, mediation sessions give the worker and their attorney more control over the process, as all parties must agree upon settlements reached through mediation.
Mediator’s Role
A mediator’s role in settlement agreements is dispute resolution, helping all parties reach a satisfying outcome in a particular case rather than making judgments. While injured employees and the employer’s insurance company will eventually sign a legal agreement, mediators do not issue verdicts in favor of either party.
Instead, the mediator uses negotiation techniques to guide everyone involved toward a favorable outcome. These negotiation skills can include reframing issues, seeking common ground between different settlement offers, and suggesting potential solutions to sticking points.
Settlement Rates in Workers’ Compensation Claim
Your jurisdiction’s workers’ compensation commission may offer mediation to avoid expensive lawsuits. Evidence suggests that mediation is a successful way to receive your unpaid benefits without the stress of trial, though its results vary by jurisdiction.
National Averages
Mediation for workers’ comp claims has a high success rate of between 80% and 92% [2]. Average settlement offers are about 20% to 50% of initial offers [3]. While this may seem low, a lawyer will first ask for a high settlement, aware that the final offer will likely be lower.
State-Specific Variations
Different states have different settlement rates. For example, in Indiana, the success rate for mediation through the Workers’ Compensation Board is approximately 70% [4].
In 2022, the Kentucky Department of Workers’ Claims conducted 349 mediations, of which 269 were settled [5], a rate of about 77%.
Wisconsin’s Department of Workforce Development has a success rate of about 66% for its Civil Rights Mediation program [6].
Factors Affecting Settlement Rates
The success of settlement in workers’ comp cases will vary significantly depending on numerous factors. One of these is the nature and severity of the injury; for example, if it can be proven that the injured worker has a total disability and will require significant future medical care, the insurance company may be more willing to settle now to avoid paying for future needs.
Clear liability on the company’s part may make the employer’s insurance company willing to settle, as they know they would lose in a lawsuit.
Additionally, the willingness of the injured worker, the workers’ compensation lawyer, and the insurance company to compromise on specific facets of the case will affect the likelihood of a settlement.
Workers’ Comp Mediation Process
The mediation process for workers’ compensation cases is more straightforward and faster than a lawsuit, which can be a drawn-out process. Your lawyer from Rosenfeld Injury Lawyers will guide you through every step and ensure you are fully aware of each element of mediation.
Pre-Mediation Preparation
Before mediation begins, you and your lawyer will gather all relevant information presented during the session. This includes medical records proving that you suffered a work-related injury, evidence of your lost wages, and medical bills.
Mediation Session
The mediation begins with introductions. The mediator introduces themselves and invites everyone else to do the same. Then, ground rules are set, such as not interrupting one another, avoiding personal attacks, and ensuring confidentiality throughout the process.
Each side will provide opening statements, discussing their perspective on the disputed issues and demonstrating why they believe their estimated sum is the appropriate settlement. After each statement, the other side is given a chance to respond, with the mediator facilitating conversation and asking questions to clarify issues.
Next, the mediator will meet with each side in a private caucus to get their perspective and identify the most pressing issues.
This is an opportunity for you and your lawyer to share the factors you feel are most relevant to the case, including the evidence you have gathered to support your position. The mediator will meet with the insurance company’s representatives privately to understand their side.
Once private caucuses are concluded and the mediator has more information about each side’s sticking points, negotiations can begin. Everyone comes together again and, under the mediator’s guidance, explains why they feel their offer is fair. The mediator will ask clarifying questions and help guide the discussion productively so that all sides are considered.
If the negotiations are successful, the mediator will produce an agreement with the agreed-upon provisions, which every party will sign. This agreement is submitted to the appropriate court and becomes a contract.
Settlement Agreement
A settlement agreement concludes the mediation process and workers’ compensation as a whole. It lists all the interested parties and explains the incident that led to the settlement, including where the accident happened and how the worker was injured.
It will also explain the steps taken to resolve the dispute, including who the mediator was and when mediation occurred.
Next, the monetary sum that concludes negotiations is listed. This will usually include a separate sum for each element of the settlement, such as pain and suffering or medical care.
The rights and responsibilities of each party will be outlined. For example, a worker’s responsibilities may include relinquishing any corporate property, agreeing not to re-litigate, or maintaining confidentiality about the agreement for a given period.
A resolution clause informs everyone involved that this is a final, binding decision that cannot be reopened. After everyone signs, the settlement is completed and will be dispersed.
Factors Contributing to a Successful Workers’ Compensation Claim
Workers’ compensation claims are complicated and may proceed in various ways, such as mediation, arbitration, or a lawsuit.
Whether a worker receives a satisfactory sum depends on factors such as whether they secured legal representation, whether they have set realistic expectations, and whether everyone involved is willing to compromise to reach a satisfying conclusion.
Experienced Legal Representation
Whether workers’ comp cases settle for a reasonable amount depends on whether the worker swiftly secured legal help. The insurance company wants to reduce its liabilities, meaning it will provide the lowest possible sum. This is especially because most workers are unaware of how much their claim may be worth.
A lawyer is crucial to ensuring that you receive a fair amount for your injury. We have the experience necessary to understand the typical payout for a given injury. We also have the necessary skills to present your case convincingly yet factually, ensuring that all relevant factors are laid out before the mediation group.
Realistic Expectations
It is essential to set realistic expectations about how much you may receive. While workers’ compensation claims should cover all medical expenses and a portion of your lost wages, they are not as expansive as a lawsuit, which can also cover non-economic damages. At the same time, the insurance company shouldn’t lowball your claim and be willing to provide a fair sum.
Open Communication and Willingness to Compromise
Open communication and a willingness to compromise to settle for a fair amount are crucial to successful mediation. If either side refuses to compromise, the case may have to go to court, an expensive and drawn-out process that may result in you receiving nothing.
Secure Expert Legal Counsel for Your Workers’ Comp Claim
At Rosenfeld Injury Lawyers, we have a long record of successful negotiations, and our experience with the mediation process can give you the best possible chance of receiving fair compensation for your injuries.
Our Chicago workers’ comp attorneys have helped thousands of workers reach agreements with insurance companies, relying on best practices for mediation and gathering strong evidence in your favor.
Call (888) 424-5757 or use our online contact form for a no-obligation consultation about taking legal action.
References: [1] Arbitration Agreement, [2] The Mediation Group Incorporated, [3] The Mediation Group Incorporated, [4] Workers’ Compensation Board of Indiana, [5] Kentucky Department of Workers’ Claims, [6] Wisconsin Department of Workforce Development