Settlement Mediations

What is a workers’ compensation mediation?

Mediation is a form of alternative dispute resolution where a neutral third party (the mediator) helps the injured worker and the employer/insurer discuss the case and try to reach a settlement agreement.

Mediation is confidential and non-binding, which means nothing said can be used against you later, and no one can force you to settle. The benefit of mediation is that it gives both sides a chance to avoid the risk and delay of a hearing by coming to a mutually agreeable solution.

Is a mediation required?

Mediation is not required to settle a workers’ compensation case. However, it can offer several advantages for both injured workers and employers/insurers. The only way a mediation occurs is if both parties agree to it. If either side is unwilling to mediate, the case will proceed to a formal hearing.

What happens during a mediation?

During mediation, the discussion almost always centers on the amount of money the parties would take to settle the claim. The settlement amount is based on what the insurance company may have to pay in workers’ compensation benefits over the life of your claim. Your attorneys job is to explain the strengths of your case and why you deserve a certain amount. And, the insurer’s attorney will argue for a lower amount.

You and your attorney can negotiate and the mediator will shuttle offers back and forth. Many workers’ comp disputes do get settled at mediation or shortly thereafter if both sides are willing to compromise. If you reach a settlement, it will be put in writing and must be approved by the State Board (this is to ensure it meets legal requirements). Once the Board approves a settlement, the insurer typically must send the payment within 20 days of the approval, so the case wraps up relatively quickly compared to continued litigation.

If mediation is unsuccessful (no agreement is reached), don’t worry – you still have the right to proceed to the formal hearing. Nothing said in the mediation will bind you at the hearing. You essentially pick up where you left off in the appeals process. Sometimes even if a mediation doesn’t result in an immediate settlement, it opens the door for negotiations that might lead to a settlement later on, even on the eve of the hearing.

Settlement negotiations can also happen informally at any stage. Often, as the hearing date approaches, both sides gain a clearer picture of the strengths and weaknesses of the case, which can prompt renewed talks of settlement. Attorneys on each side might exchange settlement offers via phone or email. It’s not uncommon for cases to settle during discovery, during mediation, or even on the day of the hearing before the hearing starts. A settlement can significantly shorten the timeline – for instance, if you settle a month or two after filing the WC-14, you avoid the additional months of waiting for a hearing and decision.

Always discuss with your attorney the pros and cons of any settlement offers – you want to make sure any agreement is in your best interest, since once a settlement is approved, you generally can’t reopen the claim later. If no settlement is reached, the case moves forward to the scheduled hearing, and the process continues.