What is a Compromise and Release in Massachusetts Workers’ Comp?

If you were recently injured on the job in Massachusetts, you might be dealing with a Workers’ Compensation claim. Many receive weekly benefit payments through Workers’ Comp, but this is not the only possible outcome. If you would rather have more money sooner, a compromise and release might help, but you should talk to a lawyer about it first.

A compromise and release is a settlement in a Workers’ Compensation case. The insurer responsible for providing benefits agrees to a compromise where you receive a lump sum payment, and they are released from further liability. However, this is not a decision to make lightly, and settlements do not always work out. If you accept a bad settlement, it might be impossible to fix the problem, and you might be stuck with insufficient compensation. The best thing to do is contact an attorney and develop a plan to get you the best settlement possible.

Talk to our Massachusetts Workers’ Compensation lawyers in a free case review about a possible compromise and release by calling the Law Office of John J. Sheehan at (617) 925-6407.

How a Compromise and Release Works in Massachusetts Workers’ Compensation Cases

In the world of Workers’ Compensation claims, a “compromise and release” is essentially a settlement agreement between the injured employee and the insurer responsible for providing benefits. Generally, injured employees may be entitled to compensation for lost wages, medical expenses, and other costs and losses. It is possible to agree to a settlement with the insurer where you are paid a lump sum payment for your lost income instead of accepting weekly payments for the next few months or years.

In many cases, injured employees may accept a lump sum to get a larger influx of cash right away, but the lump sum might not be worth quite as much as weekly payments over the duration of the disability. This is the “compromise” of a compromise and release. If you have a strong case, the insurer might be willing to pay more in a lump sum. However, the compromise might not be worth it, especially if you are expected to lose substantial income.

Once you accept a settlement, the employer and insurer may be released from liability for Workers’ Compensation. This means that if, later down the line, you run out of settlement money but still cannot work, you might be out of luck. However, you might still be able to receive future benefits related to reasonably necessary medical care, depending on the terms of the settlement. Talk to a lawyer before accepting any settlement.

Is a Compromise and Release a Good Idea in Massachusetts Workers’ Compensation Cases?

Whether or not a compromise and release is a good idea is entirely up to you. Just know, there are advantages and disadvantages that should be considered before you make any final decisions. First, our Massachusetts Workers’ Compensation lawyers should think about what your case is worth. If you are entitled to hefty benefits for lost income, a compromise and release might only reduce your compensation while speeding up the legal process.

If your injuries prevent you from ever working again, your benefits might be your only source of income, and sacrificing a portion in favor of a lump sum might not be the best idea. On the other hand, if you expect to return to work in only a few months, a lump sum might be a good idea, especially if you want to get the legal process over and done with.

What to Do if Your Compromise and Release for a Workers’ Comp Case is Bad

What happens if someone accepts a settlement as part of a compromise and release, but the deal turns out to be a bad one? Maybe you discover that the settlement you agreed to cannot cover all your financial needs. Maybe you mistakenly left certain costs and damages unaccounted for when you negotiated the settlement. What do you do next?

The answer to this question varies from case to case. Generally, once someone knowingly and willingly accepts a legally binding settlement agreement, there is no going back unless very special circumstances exist. For example, suppose you believe the insurer defrauded you into accepting a bogus settlement. In that case, you might be able to take the issue to court and argue to have the settlement undone or altered. If there is no fraud or other special circumstances, you might be stuck.

It is crucial that you negotiate a settlement with the help of a lawyer. If you choose to negotiate without a lawyer, you should at least have one review the case and terms of the settlement before you accept.

What to Do Before Accepting a Compromise and Release in a Massachusetts Workers’ Comp Case

The best way to handle a potential compromise and release is to speak to an attorney before starting. Remember, once the agreement is approved by a judge and made legally binding, there is almost no going back, barring very special circumstances.

Call a lawyer to help with your Workers’ Compensation claim as soon as possible. Your attorney can evaluate the value of your case so you know what kind of benefits you are entitled to. If a compromise and release is something you want to explore, your attorney can help you make sure you get the best deal possible.

You should also see a doctor about your injuries. Generally, people filing Workers’ Compensation claims are required to see a doctor as part of their overall claim. However, you might have to see a doctor selected by the insurer. You should also see a doctor of your own choosing. Consider visiting more than one doctor so that you have an accurate picture of what your injuries might be worth and how long you might be out of work.

Speak to Our Massachusetts Workers’ Compensation Lawyers About Your Situation Now

Speak to our Boston Workers’ Compensation attorneys in a free case assessment about a possible compromise and release by calling the Law Office of John J. Sheehan at (617) 925-6407.