What Happens If A Worker Does Not Want To Accept The Compensation Offered By The Employer?

In the workers' compensation system, if an employer offers a compensation settlement after a workplace injury, the employee generally has the right to accept or refuse the offer. Refusing the offer can lead to various legal implications, but workers have legal avenues available to dispute the offer, negotiate a better settlement, or pursue litigation.

Steps to Take If the Compensation Offer Is Refused

Evaluate the Offer

Before refusing the compensation offer, it is important for the worker to understand the full extent of their injuries, the medical treatment required, and the financial implications of accepting or rejecting the offer.

Consult an Attorney

Seek legal advice from an attorney specializing in workers' compensation claims. They can help assess whether the offer is fair, and whether pursuing a larger settlement or alternative options is advisable.

File a Formal Dispute

If the worker refuses the offer, they can file a formal dispute with the workers' compensation board or a court. This might involve a hearing to review the case, assess the worker’s injuries, and determine appropriate compensation.

Negotiate a Settlement

Workers can negotiate a higher settlement with the employer or insurance company if the initial offer is inadequate. Mediation or settlement conferences may be part of this process.

Consider Alternative Legal Action

If the workers' compensation offer does not cover all damages, or if the worker is dissatisfied with the outcome, they can pursue a civil lawsuit in certain cases, especially if third-party negligence caused the injury (such as a manufacturer of defective equipment).

Understand the Risks

Refusing compensation can result in a prolonged legal process. The worker may face the risk of no compensation if they do not win the dispute or lawsuit, or they may end up with a smaller settlement than the one initially offered.

Legal Actions and Protections

Right to Reject

Workers have the legal right to refuse the compensation offer, but it’s crucial to understand the potential risks of not accepting a fair settlement.

Dispute Resolution

If a dispute arises, workers can request a hearing or mediation. This allows for a formal review by a compensation board or a court to determine if a different amount is warranted.

Negotiation and Settlement

Workers can negotiate the terms of the compensation, often with the help of a lawyer. The goal is to secure a fair settlement that covers all medical costs, lost wages, and other related expenses.

Third-Party Claims

If a third party is responsible for the injury (such as a manufacturer or contractor), workers may also file a separate personal injury lawsuit against that party, seeking additional compensation outside of workers' compensation.

Example

Consider a factory worker who suffers a severe hand injury after being caught in a machine. The employer offers a workers' compensation settlement that covers medical bills but offers little compensation for lost wages or future rehabilitation. The worker feels the offer is insufficient and consults a workers' compensation attorney.

• The attorney helps the worker evaluate whether the compensation offer is fair and advises on the best course of action.
• The worker decides to reject the offer and files a dispute with the workers' compensation board.
• A hearing is scheduled, where the worker presents medical records and evidence of ongoing pain. The employer’s insurer offers a higher settlement during the hearing, covering the worker’s full medical expenses and lost wages.

Alternatively, if the employer’s offer is not improved during the dispute, the worker may consider filing a third-party lawsuit against the manufacturer of the machine for negligence, seeking additional compensation.