Settling a Workers’ Compensation Case in Tennessee
Under Tennessee workers’ compensation law, the employer (and/or workers’ compensation carrier) and the employee have the right to settle a workers’ compensation claim without having to go to trial. However, the settlement must be reduced to writing and must be approved by a judge in either chancery or circuit court of the county in which the claim is entitled to be made.
Approval of the settlement rests on the trial court judge’s examination of the proposed settlement to determine whether the employee is substantially receiving the benefits that he/she would be entitled to under the compensation laws. If the judge approves, the judge will enter an order approving the settlement and binding the parties to the terms of the settlement agreement.
Before agreeing to settle, you should know that once the order is issued it is generally final. This means that the terms of settlement cannot be adjusted, according to the provisions of TCA 50-6-230. There is however an exception for awards payable periodically for more than six months, as outlined in TCA 50-6-231. This exception typically comes up when a settlement is approved and finalized, but, sometime later, the employee’s work-related injury worsens and produces greater incapacity than originally anticipated. In this instance, the employee has two choices: The employee can seek agreement to modify the award with the employer (or comp carrier), or, if the employer does not agree, the employee can petition the court to modify the settlement based on the ground of “increase or decrease of incapacity due solely to the injury.”
It should be noted, however, that modification is only available for periodic payment settlements and not settlements or awards that have been commuted to lump sum payments, which means that the employee receives the total amount he/she is entitled to receive in one (or more) lump sum payments. Accordingly, before entering into a settlement agreement, the attorney should advise his/her client of the pros and cons of settlement options, particularly when there is a possibility that the work-related injury could produce greater incapacity.
Injured on the job and your employer refuses to pay workers’ compensation benefits? If so, contact an experienced workers’ compensation attorney who can help you receive the compensation you deserve in a form that works best for you and your family.
At Baker Associates, we have enjoyed great success helping clients settle claims and, when necessary, going to trial to resolve disputes. If you’ve been injured at work, call 866-853-2888 to schedule a free case consultation.
