Louisiana Workers’ Compensation Misconceptions | Part 4: Settlements

As we’ve discussed in previous blog posts, when it comes to Louisiana Workers’ Compensation, legal misconceptions are abundant. For that reason, we decided to address the most common misconceptions that our clients face to help eliminate confusion. Follow along for the final topic in our multi-part series addressing these misunderstandings. In Part 4, we address Louisiana settlement misconceptions related to workers’ comp.

*If you missed Part 1, Part 2, or Part 3 regarding misconceptions related to workers’ compensation claims or indemnity benefits, you can view them on our Blog.

MISCONCEPTION # 1: The workers compensation insurance company is required to settle with me.

There is no law requiring that the workers compensation insurance company settle your claim. While most claims do settle at some point in time, every claim is different and sometimes claims do not settle.

MISCONCEPTION #2: If I settle my motor vehicle accident claim while working, I don’t have to pay back any workers’ compensation benefits.

If you are in a motor vehicle accident while working, you may have both a motor vehicle accident claim and a workers compensation claim. If the workers’ compensation carrier pays any money for the same injuries you claim in the motor vehicle accident claim, you will likely have to pay the workers’ compensation insurance company back UNLESS you negotiate with them to take less or waive their subrogation and credits.

MISCONCEPTION #3: If I settle my workers’ compensation claim, I will never work again because employers will know that I made a claim.

If you file for workers’ compensation benefits, there will be a record of your open claim. An employer is not permitted to hire or fire an individual based on the existence of a workers’ comp claim, though. They may, however, ask you about the previous accident, injuries, and the workers’ compensation claim after you’ve been hired in what is known as a post-hire questionnaire.

MISCONCEPTION #4: I can’t settle my client because I am also on Medicare.

So long as you and the insurance company adequately protect Medicare’s interest for future medical treatment related to your claim, you can settle your workers’ compensation claim while you’re receiving Medicare benefits. Most of the time, the insurance company will obtain a Medicare Set Aside (MSA) to determine what Medicare’s interest might be. Under certain circumstances, the Center for Medicare Services (CMS) will review an MSA to ensure that it adequately protects Medicare’s interest.

MISCONCEPTION #5: The insurance company will pay my attorney’s fees.

Most of the time, the claimant pays their attorney a 20% contingency fee, as allowed by the Louisiana Workers’ Compensation Law. This generally comes from the money received in a settlement or a judgment resulting in a payment to the injured worker. The Workers’ Compensation Judge must approve the fee. Under some circumstances, the insurance company will pay the injured worker a penalty and the attorney a reasonable attorney’s fee, separate from the attorney’s 20% contingency fee. This is typically the result of a Judge’s award or an agreement on “Penalties and Attorney’s Fees.”