Benefits Of Lump Sum Payments To Injured Workers

 In General Interest Blog

When a Chicago worker suffers an on-the-job injury, the employer and the employee may have different motivations and thoughts about what should happen next. An employer may want the worker to get back on the job as quickly as possible and minimize the financial impact. An employee may be more concerned about healing, and more concerned about the financial impact of the injury.

A recent study conducted by the Workers Compensation Research Institute, looked for patterns among those who were injured at work and received a lump-sum as compensation for their injuries. Did they return to work sooner? Did they stay out longer? The results of the study are intriguing.

According to the 2,000 employees with work-related injuries who were followed, about 75 percent did not change their status when they got the lump-sum settlement. This means that if they were working, they continued to work. However, if they were not working, they continued to be unemployed. There was no speculation on this situation, but it does pose some interesting possibilities. Could employers perhaps choose to offer a lump-sum settlement only to those who were already working once again?

Another set of numbers relates to the 25 percent who changed their status when they received the lump sum. About one-third of those who were employed stopped working and about one-fifth of those who were unemployed, got a job.

The final set of numbers may be the most revealing. One year later 32 percent of those who got a lump sum were working compared to 25 who were working at the time of the lump sum payment. This seems to indicate that there is an increase in employment for those who are given a lump sum.

Whether someone qualifies for personal injury litigation, workers’ compensation benefits or other compensation, it is a wise idea to consult with a knowledgeable professional to make certain that the compensation is just, fair and adequate..

 

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