Can you go back to work after getting a lump sum settlement from workers' compensation? The short answer is: it depends. Workers' comp insurance providers will generally only offer a lump sum payment if the employee resigns. The company usually claims that if you go back to work, they may have to pay out benefits for an additional workplace injury that is already covered by the settlement. You frequently have to accept an agreed-upon award in order to resume work.

Learn more about the New Jersey workers' compensation settlement in this blog post, as well as what to think about before accepting a lump sum settlement.

If you are in the midst of a workers' comp dispute and need legal help about your specific situation, we urge you to reach out to the NJ workers' comp lawyers at Brandon J. Broderick, Attorney at Law. We have the experience and knowledge of the state's workers' comp laws to help you get a favorable outcome in your case.

Lump Sum: Pros and Cons

The goal of a lump sum settlement agreement is to reimburse you for any previous and future medical costs you may incur as a result of the injury you suffered. The workers' comp insurance company is released from any further financial responsibility for costs related to your injury after the lump sum agreement is agreed upon and signed. The insurer is no longer obligated to pay for any additional medical treatment.

However, as previously mentioned, insurance companies will assert that if you get a lump sum settlement and go back to work for the same employer, issues can occur. If your previous injury returns, you may re-apply for workers' compensation. The workers' compensation insurance provider for your employer would then be forced to foot the bill for a work-related injury that it had already paid.

Workers' compensation insurance providers frequently demand that you quit in order to get a lump sum settlement because of this possible outcome. Instead, you could accept a stipulated prize if you truly want to work for the same company.

Two Types Of Workers' Comp Lump Sum Settlements

There are two types of agreements for workers' compensation settlements, which are outlined below.

Compromise and Release

Compromise and release is usually what you think of in regard to a workers' compensation settlement. You receive a lump sum payment from these settlements and release liability from the insurance company. This sum covers both past and future medical costs.

It may be paid in full as a lump sum, or as part of a structured settlement.

The insurance company is released of liability once a compromise and release settlement agreement has been negotiated and signed. The settlement puts an end to the workers' compensation claim, and you must waive your right to sue to get the money. You cannot reopen the case in the event that it becomes apparent that the settlement sum is insufficient.

Requirement To Resign From Your Job

In a compromise and release, an insurance company claims it is very challenging to keep your job. Your employer's workers' compensation insurance will continue to provide coverage if you continue working. However, all of your medical expenses for the injury will have already been covered. Insurance companies emphasize that if you get injured again, it may result in one of two outcomes.

• Being denied  workers' compensation coverage for the same injury or body part, or;
• gain financial windfall for medical care.

This could be quite unfair to either party in both situations. Because of this, many insurers demand that you quit your job before they will give you a compromise and release a settlement contract.

A compromise and release is final. Accepting less than what you will require to recover from your injury results in you coming out of your own pocket to pay for any additional medical care.

Consult with an experienced attorney before accepting any settlement offer.

Stipulation and Award

A workers' compensation claim may also be resolved in exchange for a stipulation and award. You may go back to work if this type of settlement is reached. The workers' compensation insurance company will pay for all ongoing medical costs related to your injury. The insurance provider will cover the bill if you require additional medical attention for the injury for the rest of your life.

The insurer will still pay for your future medical expenses even if their price increases. To receive this coverage for additional medical care, you may need to reopen your claim.

Insurance companies do not force you to quit your employment in order to collect a stipulation and award settlement because there are no unfair consequences from receiving money upfront for your injury.

New Jersey Workers' Compensation Attorneys From Brandon J. Broderick, Attorney At Law

Work-related illnesses and accidents can impact an entire family. This is why it's important to have adequate legal representation to help you get the compensation you are entitled to.

At Brandon J. Broderick, Attorney at Law, we value client service, compassion, and case resolutions. We are among the best workers' compensation law firms in New Jersey, as well as the surrounding states.

For a free consultation, get in touch with us today.