A South Carolina workers’ compensation settlement is a formal agreement between you and your employer’s insurance company to conclude a workplace injury claim. The purpose of the agreement is to finalize your workers’ comp claim, replacing weekly benefits with a fixed sum to cover remaining expenses related to your injury or illness.
The value of a work injury settlement varies for each person, depending on factors such as the severity of the injury, the worker’s average weekly wage (AWW), the type and amount of medical treatment necessary, and any long-term limitations they experienced. The S.C. Workers’ Compensation Commission must approve these settlements, which generally prevent the claimant from requesting future payments later.
Since you typically cannot reopen a claim after it settles, many Palmetto State employees choose to consult an experienced workers’ compensation lawyer for guidance. Insurers work hard to keep payouts low. You deserve an advocate who works just as hard for you to pursue a fair settlement that meets your needs.
The workers’ compensation attorneys at Land Parker Welch LLC have 120 years of combined experience serving injured people in Manning, South Carolina, and the surrounding communities. We know how insurers approach settlement negotiations and the common challenges that claimants encounter during the process. Our legal team can review your case, place a value on your workers’ comp claim, and provide steadfast legal representation during settlement talks.
Contact us today for a free consultation.
Types of Workers’ Compensation Settlements
A workers’ compensation settlement resolves your claim by replacing your ongoing benefits with an agreed-upon payment. Rather than continuing to pay weekly benefits or medical costs, the insurance carrier negotiates a resolution with you or your attorney.
South Carolina gives employees the option of choosing a:
- Clincher agreement – This is a lump-sum workers’ comp settlement that finalizes the claim with a one-time check, and the employee gives up the right to request future payments.
- Form 16A settlement – This arrangement settles the disability portion of your claim but keeps the medical portion of your claim open for a period of time in case your condition changes.
Depending on your situation, you may choose to accept payment through a structured settlement rather than a lump-sum settlement. This option spreads your workers’ comp payout over a set period of time.
What Determines the Value of a Workers’ Compensation Settlement?
Several key factors shape the value of a work injury settlement, including:
Injury Severity
As a rule, severe injuries generally result in higher workers’ comp payouts. That’s because serious injuries usually have higher medical costs, longer recovery periods, and a greater likelihood of leaving a worker with long-term impairments. All of these elements should factor into your workers’ compensation settlement.
Average Weekly Wage
Your average weekly wage (AWW) at the time of the accident directly affects your settlement value. South Carolina workers’ comp benefits are calculated at two-thirds (66.67 percent) of your AWW, so the higher your income, the more weekly benefits and higher potential settlements you could receive. Your AWW also factors into how permanent disability benefits get calculated if your injury causes a lasting impairment.
Medical Treatment and Future Care Needs
Your past, current, and future medical treatment needs should weigh heavily in any settlement calculation. If your injury will require ongoing care, the costs of that future care should be a part of your settlement. A workers’ comp settlement that fails to account for your future medical care expenses could leave you responsible for paying those costs out of pocket.
Disability/Impairment Rating
If you still have limitations once you reach maximum medical improvement (MMI), your treating physician may assign you a permanent impairment rating. This rating is evaluated by the Commission when calculating your final disability rating, which can greatly impact your settlement amount. Having an attorney assess the fairness of your impairment rating may become an important part of the settlement process.
When Can a Workers’ Compensation Claim Be Settled?
You can’t just settle a workers’ comp claim at any point in the process. South Carolina has clear rules about when settlement is an option, and moving too quickly could cost you benefits you’re entitled to.
Maximum Medical Improvement (MMI)
MMI is the point at which your treating physician determines that your condition has stabilized and additional treatment won’t meaningfully further your recovery. South Carolina law generally requires you to reach MMI before the parties can settle a claim. Before MMI, you may not know the full extent of your injury or your future medical expenses, which could lead you to accept less money than you are entitled to.
South Carolina Settlement Review Process
South Carolina requires the Workers’ Compensation Commission to review and approve all settlements before they become binding. If you have an attorney, they can submit your settlement paperwork for approval without you having to appear before the Commission in person. If you don’t have an attorney, you must appear before a Commissioner at an informal conference.
Common Mistakes to Avoid Before Accepting a Settlement
Here are common mistakes people make when settling their workers’ compensation claims:
Accepting an Offer Before Future Costs Are Clear
If you choose a Form 16A settlement, you generally retain the right to seek additional medical care within one year. However, a clincher agreement fully and finally closes your claim. If you agree to a clincher settlement before your future care needs are clear, you lose the ability to recover compensation for those costs later.
Overlooking Lost Wage Capacity
A workers’ comp settlement should account for more than your current income losses. If your injury permanently affects your ability to earn at the same level as you did before the accident, you deserve compensation for that loss of wage-earning capacity. Overlooking this factor might result in you accepting a settlement that falls short of what you’re actually entitled to.
Settling Without Legal Review
A settlement offer from an insurance carrier isn’t a take-it-or-leave-it situation. An experienced workers’ compensation attorney can evaluate settlement offers against the full value of your claim, flag anything the insurer leaves out, and push back if the number doesn’t reflect what you are owed.
Speak With Our Workers’ Compensation Lawyers Before Accepting a Settlement Offer
Before you accept any workers’ compensation settlement offer, talk to an attorney at Land Parker Welch LLC. We’ll review your claim, explain what your settlement may actually be worth, and help you avoid costly mistakes that could leave you without the compensation you need. Contact us today to get started with your free initial consultation.
FAQs About Workers’ Compensation Settlements
Here are answers to some of the most common workers’ comp settlement questions we hear from workers throughout Manning and the surrounding South Carolina communities.
Are Workers’ Compensation Settlements Taxable?
In most cases, workers’ compensation settlements are not taxable at the federal or state level. The IRS generally excludes workers’ comp benefits from gross income, which means you typically won’t owe taxes on a lump sum workers’ comp settlement.
Does Surgery Increase a Workers’ Compensation Settlement?
Yes. A surgical procedure typically means higher medical costs, a longer recovery period, and a greater likelihood of permanent impairment, all of which factor into the value of a workers’ comp case and any eventual settlement.
Can You Reopen a Workers’ Compensation Claim After Settlement?
It depends. Some settlement agreements allow you to seek additional benefits within one year of your last payment if your condition worsens. Others finally resolve your entire claim upon signing, with no right to reopen it later. The settlement type you choose has lasting consequences, which is why it’s best to seek legal guidance before you decide.
