How Workers’ Compensation Liens Work

Have you ever wondered how workers’ compensation liens work and what they mean to your financial situation? Understanding the ins and outs of workers’ compensation can be complex, especially when it comes to liens that may be placed on the settlement or judgment you receive.

It is important to have a clear understanding of this matter to protect your rights and ensure you receive the compensation you deserve.

An Atlanta workers’ compensation attorney can help you understand workers’ compensation liens and how they can affect your financial compensation. Let’s take a look at how workers’ compensation liens work and the steps you can take to ensure you receive fair and just compensation.

What is a Workers’ Compensation Lien

A workers’ compensation lien is a legal claim placed on an employee’s settlement or judgment in a third-party personal injury lawsuit. If an employee is injured on the job due to someone else’s negligence, they may be entitled to both workers’ compensation benefits from their employer’s insurance as well as damages from the at-fault third party.

However, to prevent double recovery, the workers’ compensation carrier has the right to place a lien on any compensation received from the third party. This means that if an employee receives money from a lawsuit, any medical expenses, lost wages, or other benefits they’ve already received through workers’ compensation may need to be repaid.

The purpose of this lien is to reimburse the workers’ compensation insurer and ensure the injured worker does not profit from their accident by collecting twice for the same injury.

How Does a Worker’s Comp Lien Work?

When an employee is injured at work and receives workers’ compensation benefits, they maintain the right to file a lawsuit against a third party if negligence on the third party’s part caused their injury.

For example, if an employee is involved in a car accident while driving for work and another driver caused the accident, the employee may be able to file a lawsuit against the at-fault driver.

If the employee receives a settlement or judgment, the workers’ compensation insurer has the right to assert a lien. This allows the insurer to recover the money they have paid out in benefits related to the employee’s injury.

How Much Is a Workers Compensation Lien?

The amount of the lien is often based on the total benefits paid to the employee, including medical expenses and lost wages.

The specific dollar figure of any given lien will vary greatly depending on the nature of injuries, length of recovery, types of benefits utilized, and individual state regulations.

Consultation with an Atlanta personal injury lawyer who has experience handling workers’ compensation claims is recommended to fully understand lien obligations in your case.

How Is a Lien Resolved?

Resolving a workers’ compensation lien can be a complex process. In most cases, negotiations take place between the employee, the workers’ compensation insurer, and the third-party insurance company or defendant responsible for the employee’s injury. 

It’s essential for all parties involved to reach an agreement on the amount of the lien and the distribution of the settlement proceeds.

Negotiation

Determining who bears the financial responsibility for your losses may depend on the outcome of a third-party lawsuit. If there is no lawsuit, then the employer will have to provide the necessary benefits for the employee’s recovery.

In such cases, it is in the best interest of both parties to negotiate beforehand. By engaging in negotiations with both your attorney and your employer beforehand, you may increase your chances of filing a successful third-party lawsuit and receiving a higher settlement.

In this case, both parties win. The injured employee obtains the financial compensation they deserve, while the employer can potentially avoid shouldering the full burden of providing benefits. 

How A Workers’ Comp Attorney in Atlanta Can Help

We take a meticulous and comprehensive approach to your case. We maintain close communication with all involved parties, such as your employer, insurance carriers, and healthcare providers, to track expenses tied to diagnosing and rehabilitating your injury.

Once we have a full accounting of costs, we negotiate settlements and potential third-party claims on your behalf. Our goal is to maximize your award by exploring all available means of recovery through the workers’ comp system, as well as any other responsible entities if applicable under the law.

With our strategic and diligent representation, you can focus entirely on your recovery while we fight to secure the adequate financial support you need and deserve.

Contact an Atlanta Workers’ Compensation Law Firm Today

Having a full understanding of workers’ compensation liens is critical to making sure injured workers receive every payment they are owed. The attorneys at John Foy & Associates have years of experience advocating for clients during the complex lien resolution process.

Our team will thoroughly analyze each case to determine liability and compensation amounts while entering into strong yet productive negotiations with insurance carriers. By pursuing all potential means of financial recovery, from workers’ comp benefits to third-party claims, we are able to maximize our clients’ settlements.

We also aim to establish fair lien amounts that don’t unduly burden the injured workers we represent. Contact us for a free case evaluation. Our goal is to make the compensation process as stress-free as possible so you can focus fully on your recovery.