Yes, it is possible to collect unemployment after a workers’ compensation settlement. However, a resignation letter to your employer will often become part of the settlement deal. Thus, ending your unemployment benefits. If you were collecting unemployment while awaiting a settlement from your workers’ compensation claim, then your settlement will be reduced by the amount you collected from unemployment benefits.
Depending on the details of your workers’ compensation case, there may be legal avenues available to continue your unemployment benefits after settling your claim. To determine your eligibility for unemployment after a workers’ compensation settlement, contact Maison Law for a free consultation and case evaluation.
Workers’ Compensation Settlements
Even though most workers’ compensation settlement deals require you to officially resign from your employer, there is no specific workers’ compensation rule or law that requires you to voluntarily resign from your job when you settle your workers’ compensation claim. A Workers’ Compensation Attorney can negotiate for you to keep your job as part of the settlement, and your workers’ compensation case will be settled without quitting your job.
It is important to remember that workers’ compensation settlements are voluntary. You do not have to seek a settlement for your claim and all settlement offers are entirely optional. So, if your employer insists that you resign after you’ve been offered a lump sum payment from your workers’ compensation case, you are under no obligation to accept that deal. For this reason, it is important to partner with an attorney who can help you navigate the complexities of workers’ compensation settlement negotiations.
Types of Worker’s Compensation Settlements
Worker’s compensation can be settled through a compromise and release, or a stipulation and award. The difference between these types of settlements can have a substantial impact on lawsuits, which is why it is important to consult with a worker’s compensation attorney before accepting one.
Under a compromise and release settlement, the insurer will offer you a lump sum of money to settle your lawsuit. This settlement can be accepted all at once or spread out over time in a structured settlement. This amount typically reflects your lost wages, ongoing treatment, and out-of-pocket expenses. Once this settlement is accepted, your worker’s compensation claim is closed.
While less common in worker’s compensation claims, a stipulation award is a settlement that creates an ongoing relationship between the injured victim and the insurer. The insurer agrees to continue to pay medical bills associated with the work-related accident while continuing to pay disability benefits caused by your impairment.
How to Collect Unemployment After Receiving Workers’ Compensation Benefits
Workers’ compensation benefits are typically limited to the duration of a person’s disability or until maximum medical improvement (MMI) has been reached. MMI is when your treating physician gets you back as much of your bodily function as possible so you can return to work.
So, once you’re deemed MMI, your workers’ compensation benefits will typically end. However, it is important to note that just because you’ve been diagnosed as MMI, this does not mean you are as physically capable as you were before your injury. Sometimes, injured workers can suffer permanent or temporary disabilities and still be considered MMI. California Law defines permanent disability as:
“A disability is considered permanent when the employee has reached maximal medical improvement, meaning his or her condition is well stabilized, and unlikely to change substantially in the next year with or without medical treatment.”
If you are left unemployed after your benefits end, then you may be able to apply for unemployment benefits if you meet the eligible criteria. Another way you can receive unemployment after a work injury is if your workers’ compensation claim has been denied. While you appeal the denial, you may be eligible for unemployment benefits while you’re awaiting a decision. But once your workers’ compensation claim is approved, the state of California will need to be repaid for any unemployment benefits you received.
What if I am Terminated Before I File a Workers’ Compensation Claim?
In the unfortunate event that you are let go from your job, but realize you have suffered a work-related injury, you can still file a workers’ compensation claim. In order to do this, you will have to show:
- The employer was aware of your injury prior to the termination
- There are medical records prior to the layoff that show evidence of an injury
- The injury took place after you were notified you would be let go but before your last day of work
- The injury occurred over time, and you did not suffer any effect until after you were notified you would be terminated
Contact a Workers’ Compensation Lawyer in California
It is recommended to speak to a lawyer as soon as you suffer a work-related injury in California. Maison Law specializes in the complex legal process of workers’ compensation claims. Our firm will build a strong claim on your behalf and file a lawsuit against workers’ compensation, as well as help you collect unemployment if you are eligible. For expert legal counsel, contact Maison Law today for a free consultation and case evaluation. There are no upfront charges for our services and you will not have to pay a cent unless we win your case.
