Settlement Guide for Injured Workers

Georgia Workers’ Compensation Settlements

A workers’ compensation settlement is an agreement to resolve a workers’ comp claim for a certain amount of money. Instead of continuing weekly benefit checks or ongoing medical payments, the injured worker and the employer’s insurance company agree on a lump sum or payment plan to close the case. However, it’s important to remember that once you settle and the agreement is approved, you usually cannot go back and ask for more money later. This means you have only one chance to get a fair amount, so understanding settlements is very important.

Can a judge award me a workers compensation settlement?

No. A judge cannot order a settlement. A judge can only order the payment of benefits that you are entitled to under the law, such as the payment of medical bills or weekly checks for lost income while you are out of work. The Judge does not have the power to order a settlement, which is a lump sum payment to close the case. If you want to settle your case, you must negotiate a settlement with the insurance company.

Liability Settlements

Another way to describe settlements is by whether the employer/insurer admits responsibility for the injury. In a liability settlement, all parties agree that the injury is work-related and the employer’s insurance is liable (responsible) to pay workers’ comp benefits. This kind of settlement usually happens when the insurance company has been paying benefits, and it essentially finalizes the claim with an agreed payment.

No-Liability Settlements

In a no-liability settlement (also called a “denial” or disputed claim settlement), the insurance company disagrees that the injury or illness is work-related or disputes the benefits, but is still willing to pay some amount to settle the case. In other words, the insurer does not admit fault or liability, yet offers money so that both sides avoid the cost and uncertainty of a court decision. No-liability settlements often require a bit more paperwork and Board oversight because the insurer hasn’t formally accepted the claim. Whether a case settles on a liability or no-liability basis usually depends on the situation – for example, if you already received weekly benefits, it’s likely a liability settlement; if your claim was denied from the start, any settlement would likely be no-liability

From the injured worker’s perspective, a no-liability settlement means the employer isn’t officially admitting the injury was their responsibility. But the practical result is similar: you receive an agreed sum of money and in exchange give up the right to pursue further claims for that injury. Keep in mind, you are never required to accept a settlement – it’s a voluntary agreement. If you feel a no-liability offer is too low or unfair, you have the right to refuse and take your case to the State Board of Workers’ Compensation for a hearing. But the judge can only order the insurer to pay for things like medical treatment and back due wages, they cannot order a lump sum settlement.

Filing a Claim is Required

First, you must have a workers’ compensation claim. This starts when you report your work injury to your employer and file the appropriate forms . You should be receiving benefits if your claim is accepted – such as medical treatment coverage and weekly income benefits – or you might be in a dispute if the claim was denied. Settlements usually come into play after the claim is filed and both sides have information about the injury.

Medical Treatment and Evaluation

Before a settlement is discussed, you would usually receive medical care for your injury. The doctors’ reports and your recovery progress help everyone understand the extent of your injury, the treatment you need, and whether you have any permanent disability. These factors influence how much your case is worth. Often, it’s wise to wait until you have reached Maximum Medical Improvement (MMI) – meaning your condition has stabilized as much as possible – so that future needs are clearer. (While this isn’t a formal requirement, settling too early can be risky if you don’t yet know how fully you will recover.)

Initiating Settlement Talks

Settlement can be suggested by either party. In many cases, the insurance company will offer a settlement to close the claim, especially if they believe you have strong evidence for benefits. They may reach out with an offer, or your attorney (if you have one) might contact them to start negotiations. There is no specific time in Georgia law when a settlement must be offered – and indeed, the law does not force either side to settle at all. It’s a voluntary process. However, most claims do eventually end in a settlement, because it provides closure for both the worker and the insurer. If the insurer refuses to settle or offers too little, you can continue your claim through hearings and appeals instead.

Determining the true value of your case

The value of a workers’ compensation case is based on how much the insurance company may have to pay out in future benefit costs. This is mostly based on the three main benefits provided by workers’ compensation:

When we add up the value of the future benefits you may be entitled to, we can understand the insurance company’s potential exposure. In other words, the total amount of money the insurance company may have to pay out if the case never settles.

However, insurance companies use many tactics to try to limit their exposure. For example, they may try to pressure you to return to work before you are ready, deny future medical treatments as unrelated, or any number of other tactics. In workers’ compensation law, there are complicated regulations that place limits on how long you can receive benefits and the max amounts you can receive. And, for many rules that limit your future benefits, there are also exceptions that can increase the value of your case. These complicated legal rules are contained in Title 34, chapter 9 of the Georgia Code and the Georgia State Board of Workers’ Compensation Rules and Regulations.

Understanding how all of these pieces fit together requires a deep understanding of Georgia workers’ compensation law. Unfortunately, there is no simple formula to determine the value of a workers’ compensation case. The value of your case depends on the unique facts and circumstances. Every case is different. After proper investigation, an experienced attorney will be able to provide you with an accurate estimate of the value of your case and help you negotiate a fair settlement.

Negotiating the amount

Negotiation is where both sides discuss how much money will be paid and under what terms. This can happen informally through phone calls or letters, or sometimes through mediation (a meeting with a neutral mediator) if needed. You and the insurance company will consider the cost of your remaining medical treatment, the amount of weekly wage benefits you might receive in the future, any permanent disability rating, and other factors like job retraining needs or disputed issues.

The insurance company’s goal is to close the case for the lowest amount they feel you’ll accept – their adjuster’s job is literally to adjust (lower) the value of the claim. Your goal is to make sure the amount is enough to cover your needs. This back-and-forth may involve multiple offers and counter-offers. It can take some time (weeks or even months) to reach an agreement that both sides find acceptable. Remember, you do not have to take the first offer if it seems too low – it’s common to negotiate for a fair amount. Insurance companies will often try to lowball injured workers who are not represented by an attorney, so it’s a good idea to consult with a lawyer before negotiating any settlement offer.

State Board approval is required

In Georgia, a workers’ comp settlement must be approved by the State Board of Workers’ Compensation (SBWC) to become final. This is a legal requirement to protect injured workers. The settlement documents are sent to the SBWC’s settlement division for review. The Board will check that the agreement is fair and meets all legal rules. This includes making sure necessary information is included (like medical reports, attorney fee contracts, etc., if applicable). If everything is in order, the Board will issue an approval order. It usually takes some days or a couple of weeks for the Board to review and approve a settlement once submitted. If there’s a problem (for example, a missing document or a term that is not allowed), the Board might ask for it to be corrected. In most cases, any issues are minor and can be fixed quickly so the settlement can be approved. Occasionally, the Board could deny approval if they believe the settlement is fundamentally unfair, but that is not common when both sides are represented and agree.

Payment of your settlement

After the settlement is officially approved by the SBWC, the insurance company is required to pay the settlement amount within a set time. Georgia law gives the employer/insurer 20 days to send the payment once the Board approves the settlement. This means you should receive your check (or first payment, if structured) within about three weeks after approval. If the insurer is late (beyond 20 days), they may have to pay a penalty – usually an extra 20% of the amount – for the delay. In practice, most insurers meet the deadline. Payment is often made by check and sent to you or to your attorney (who will then disburse the funds to you after deducting any approved attorney fees or other costs).

The case is closed after settlement

Once you have received your settlement money, your workers’ compensation case is considered closed (in a global settlement, all aspects are resolved). You will not continue to get weekly wage benefits or medical treatment paid by workers’ comp after that. The settlement is a final resolution of the claim. (In rare cases, if the settlement was structured to leave some part open, like future medical treatment for a limited time, then that part would continue as specified. But most settlements close everything.) The State Board will typically not have further involvement, except to ensure the settlement terms are honored (for example, that you were paid on time).

What Injured Workers Should Consider Before Settling

Deciding whether to settle – and for how much – is a big decision. Injured workers should carefully consider several factors before agreeing to any settlement:

Medical Expenses (Past and Future): Make sure the settlement amount accounts for all of your medical bills from the injury, including any that might not have been paid yet, and future medical needs. Ask yourself: Will I need ongoing treatment, medication, or possibly surgery later on? Workers’ comp typically covers medical treatment while the claim is open, but after a settlement, you will likely be responsible for future medical costs out of your settlement money or through your health insurance. For example, if you might need a knee replacement in two years because of this injury, you’d want the settlement to include money for that. It’s wise to talk with your doctor about your long-term outlook. Don’t settle until you have a clear picture of what your injury will require medically down the road. It would also help if you can get private insurance to cover future medical expenses.
Lost Wages and Future Income: Consider how the injury affects your ability to work. Settlements usually include an amount to cover some of your lost wages (often based on the weekly benefits you’d receive over time). If you have a permanent disability or cannot return to the same kind of job, think about your future lost earning capacity. Will you be able to find other work? If not, you might use the settlement money to support yourself for a longer period. Make sure the amount is enough to make up for the income you’re losing while you recover or if you have reduced earning ability. This calculation should include any permanent partial disability benefits you’d be entitled to under the law for a lasting impairment. Once you settle, you won’t get weekly checks anymore, so the money has to last or cover the gap until you can earn wages again.
Degree of Disability: If your injury left you with a long-term or permanent disability, weigh that heavily. For example, losing function in an arm or having chronic back pain can affect you for life. Georgia’s workers’ comp has formulas for permanent partial disability ratings (PPD), which convert to a certain number of weeks of benefits. Know what your rating is (if you have one) and how much that would pay if you did not settle. Ensure the settlement at least covers that amount (and usually more, since it may also be closing future medical). If you’re permanently totally disabled and cannot work at all, consider that you might qualify for other benefits like Social Security Disability. But any workers’ comp settlement should be sufficient given you may never earn as much as before.
Remaining Benefits if You Don’t Settle: Try to estimate how much you would receive if you did not settle and instead continued on workers’ comp. For instance, if you could potentially receive another year or two of weekly benefits, add that up. Also consider the value of ongoing medical treatment that would be covered. This creates a baseline to compare against the settlement offer. If the settlement amount is significantly lower than what you expect to get over time by keeping the claim open, it might not be a good deal. On the other hand, if the offer is close to or more than what you’d likely get (especially factoring in that you get the money now as a lump sum), then it could make sense. Keep in mind the insurance company isn’t offering “free” money – they calculate a settlement largely based on what they expect to pay out anyway. Often, they discount it a bit since they are paying early and taking on the risk. You have to decide if that trade-off is acceptable.
Financial Needs and Stability: Your personal financial situation matters. Some workers might need a lump sum right away – for example, if you have mounting medical bills, other debt, or you need to pay for a big expense. Getting money now can sometimes be more valuable to you than slowly over time. If you are in a tough financial spot and workers’ comp checks aren’t enough to stay afloat, a settlement could help. But be cautious: don’t let immediate money problems force you into a cheap settlement. There are sometimes other ways to get help (like short-term disability, family help, etc.) while you negotiate for a fair amount. On the flip side, if you’re managing okay with the weekly benefits and medical bills paid, you might not feel pressure to settle quickly. You could afford to wait for a better offer or until you reach MMI.
Ability to Manage a Lump Sum: Think about how comfortable you are handling a large sum of money. Some people might spend the money quickly or not budget well, and then struggle later when it’s gone. If you worry about that, a structured settlement or a conservative financial plan might be better. Or you might decide to continue with weekly benefits (which act like a steady paycheck) rather than take a lump sum now. It’s your money and your decision, but be honest with yourself about money management. If you do take a lump sum, it can be wise to consult a financial planner or at least plan a budget for it, especially if it needs to last for many years.
Desire for Closure vs. Ongoing Claim: Some injured workers just want to “move on” from the workers’ comp process. The weekly checks, doctor appointments, and maybe vocational rehab or legal hearings can be stressful. Settling can give emotional closure – you get your money and you’re done, no more dealing with the insurance company or nurse case managers. This can be a big relief mentally. On the other hand, if you settle, you lose the safety net of workers’ comp. You can’t later say “my condition got worse, please restart my benefits” – that option is gone. So consider your peace of mind: Would you feel better having a lump sum and ending the case, or do you feel more secure keeping the benefits in place as long as you can? There’s no right answer; it depends on your personal comfort.

Before agreeing to a settlement, weigh all these factors together. It can be like putting together a puzzle: your health, your finances, your family’s needs, and your future. It’s often helpful to discuss these considerations with a workers’ comp attorney who can estimate the value of your case and advise on whether an offer is reasonable. As the saying goes, “don’t leave money on the table” – once you sign, you can’t get more later, so think it through thoroughly now.

Impact on Employment:

If you were still employed or on leave with the employer where you got hurt, a settlement might affect that. The vast majority of settlements come with a resignation requirement – meaning the employer asks you to resign as part of the deal. This can happen especially if the injury was severe or caused tensions, or if they don’t have a suitable job for you within your restrictions. If you agreed to that, you’ll need to turn in a resignation letter and possibly you may get paperwork about COBRA health insurance or final paycheck, etc. If there was no such requirement and you are physically able to work, you might return to your job (though if you’re fully recovered and settling, usually you’ve already returned or you might choose to move on anyway). Make sure you understand whether your employment status is affected by the settlement. If you are leaving the job, plan for your next steps – whether it’s job hunting, retraining (sometimes you can use settlement money for school or training), or retirement if that’s the case.

Reasons to hire an attorney to negotiate a settlement

Negotiating a settlement can be a challenging process, which is why having an experienced workers’ compensation lawyer on your side is so important. On average, injured workers who hire lawyers recevie signifigantly higher settlements than those who don’t. Here are some reasons why:

An experienced attorney not only advocates for you but also crafts a compelling demand letter that sets the stage for a fair settlement. An experienced lawyer gathers every piece of relevant information about your case. They know how to calculate the full value of your claim—including future medical treatments, lost wages, and any permanent impairment—ensuring that your demand letter is backed by solid evidence. This expertise prevents the insurance company from undervaluing your case and helps build a strong foundation for negotiations.
An experienced workers’ comp attorney will know when you are entitled to additional benefits but are not receiveing them. For example, if your disability is permanent and you will not be able to return to work, you may be entitled to a catastrophic designation which would entitle you to lifetime medical benefits. This designation would signifigantly increase the potential value of your case. An attorney will know when to ask for this designation and how to get it.
An experienced workers’ comp attorney understands that the initial offer from an insurance company is often low, using it as a starting point for further negotiations. They know not to rush the process and will make sure you continue to receive your benefits while they build a persuasive case. With their guidance, you won’t settle too early and risk leaving money on the table.
Unrepresented workers can unintintionally make mistakes that can hurt their case. Small mistakes could reduce the value of your claim or even lead to a denial. An attorney helps you avoid these pitfalls by guiding you through the process and ensuring that all necessary documents are filed correctly and on time.
Finally, your lawyer will advise you on the best moment to accept a settlement offer or hold out for more. They have a deep understanding of the risks of going to trial versus the benefits of settling early, and their guidance helps you make an informed decision. An experienced lawyer will have expereince handling hundreds of settlements so they will know what the true value of the case is. When you do decide to settle, you can be confident that the final agreement truly reflects the full value of your claim.

Example

Imagine “James” injured his back at work. He received medical treatment and was out of work for several months. He was eventually able to return to a light-duty job but still had pain and limitations. His doctor said he had a 10% disability rating. The workers compensation insurance adjuster calls him, and offers a settlement of $20,000 by the insurance company to close his case. The adjuster makes it sound like they are doing James a big favor. However, James did not know that his disability rating entitled him to receive that money anyway under Georgia law, even if he never settled.

In that case, the settlement would be a lowball offer. Offereing a settlement offer right after an injured worker gets a PPD rating is a common tactic by insurance companies to close out claims. This tactic can be very deceptive when the insurance company does not explain that the injured worker is entitled to that money anyway. Without the help of an attorney, James could have settled his case for much less than it was worth.