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How Long Do Workers Comp Settlements Take?

Published October 31, 2024 by Matt Fendon Law Group | Workers' Compensation

If you’ve been injured at your job and your injury is preventing you from working fully or at all, there’s a heavy chance that you already feel the effects of lost income. 

Arizona’s workers’ compensation system is meant to help you when you cannot keep up your income after a work-related injury or medical condition. However, many affected employees may wonder, “How long do workers comp settlements take before I start seeing benefits?”

At the Matt Fendon Law Group, our workers’ compensation attorneys work to ensure you receive the maximum benefits you deserve as quickly as possible.

If you have recently been hurt on the job in Arizona or are having trouble with an ongoing workers’ compensation claim, call us at 800-229-3880 to speak with one of our workers’ compensation specialist lawyers in a free consultation. They, along with this guide, will help you understand how long a workers’ comp settlement can take. 

Factors Within Your Control

The speed of your workers’ compensation settlement largely depends on how quickly you file your claim and take action.

When You File Your Claim

You have up to one year from the date of your injury or work-related medical condition discovery to file a workers’ compensation claim with your employer. The longer you wait to file, the longer it will take to get the settlement process underway.

You are responsible for initiating your claim and understanding all the related documentation and notice periods involved in the claim process. You cannot count on your employer or insurer acting for you.

This is one reason why having an experienced lawyer help with your claim can work to your advantage. An experienced attorney will know what documents and deadlines are required, ensuring that you file your claim quickly and correctly.

An infographic listing the key deadlines for filing workers' compensation claims.

Responding to a Claim Denial

Not all workers’ compensation claims are accepted right away. If your claim gets denied for any reason, Arizona workers’ compensation law allows a 90-day period to file a protest.

This can be done by writing a demand letter or by filing a Request for Hearing form that you can get from the Industrial Commission of Arizona (the ICA). Your attorney can file this request on your behalf.

Once the ICA receives your letter or Request for Hearing form, it will notify you of the time and place for a hearing on your protest. Again, it is your responsibility to know when this hearing takes place. If you fail to act when necessary, your claim settlement may be delayed.

Helping the ICA With Wage Calculations

Sometimes, the ICA will not agree with the insurance company’s calculations of your average monthly wage. When this happens, the ICA will ask for your help establishing the correct wage amount. You have 90 days to protest the insurer’s average monthly wage calculation, and missing this deadline is another way that you can inadvertently delay your settlement. If you are working with a workers’ compensation law firm, your lawyers can ensure you do not miss this reply deadline.

Keeping the Insurer and the ICA Informed When You Receive Temporary Benefits

Before you receive a final workers’ compensation settlement, you may receive either temporary total or temporary partial workers’ compensation benefits until your condition becomes medically stationary. This means that you have reached your point of maximum medical improvement.

If you’re receiving temporary partial benefits, it is your responsibility to inform the workers’ compensation insurer of your job search efforts and report any income you earn. Not doing so can give the insurance company grounds to challenge your claim status or accuse you of making a fraudulent claim. This, again, will cause delays in receiving your full settlement.

Attending Insurer-Scheduled Medical Examinations

While you receive medical treatment for your work injury or condition, the workers’ comp insurer has the right to schedule you for a medical evaluation periodically. You are responsible for attending these evaluations; if you do not, the insurance company can suspend your temporary benefits and even require you to pay for the missed exam. This can also adversely affect your settlement claim.

Challenging Insurer Closure of Your Claim

When you have reached the point of maximum medical recovery, the insurance company will provide you with a new Notice of Claim status. The ICA considers it your responsibility to understand this notice and, if you disagree with it, request a hearing with the ICA within 90 days from the date on the notice or when the insurer’s notice becomes final.

An infographic listing ways to avoid delays in receiving workers' compensation benefits.

Factors Outside of Your Control

Although the ICA considers it your responsibility to understand your part in keeping the settlement process going, many factors can delay that process which you have little or no influence over.

Some of these relate to the seriousness of your injury or medical condition, how long it will take for you to recover, and whether you can fully recover or suffer from a permanent disability. Others may be because of inefficiencies, errors, or even deliberate behaviors by the workers’ comp insurance company.

Workers’ compensation insurance carriers are like any other insurers: to keep their profits up, they will do what they can to minimize payouts. This means the insurance company will not be very interested in helping you to make your claim, correct any claim mistakes, or help you find every benefit you are entitled to in the settlement.

Insurance companies may even “play hardball” with you on your claim by using tactics meant to slow down settlement or deny your workplace injury claim altogether.

Here are a couple of ways that your settlement agreement with the insurance company can be delayed through no fault of your own:

  • The insurance company may be slow in responding to your claim, delaying their investigation or independent medical examinations. The reason behind this is often innocent, like a heavy claims caseload. However, this can be a purposeful delaying tactic.
  • The insurance company challenges the nature of your injury, like claiming it is a pre-existing condition, that it is not truly work-related, or that you were engaged in behaviors that disqualify your injury claim, like horseplay, violating employer safety requirements, intoxication, or illegal behavior.

It can take weeks or even months for an insurer to work its way through your claim. Once your claim is denied, it can also take months to go through ICA hearings.

Settlement Negotiations With the Workers’ Comp Insurer

You may need to settle your long-term claims if you need workers’ compensation benefits for more than a temporary basis, such as with permanent injuries.

Not every workers’ compensation case settles, and not every settlement is negotiated voluntarily. Sometimes, it may be necessary to file a lawsuit against the insurance company. Often, however, an insurance company will see a settlement amount for your claims as being in its best economic interest and will be interested in settling with you.

What is the Effect of a Settlement Agreement?

A settlement agreement replaces payments made to you through Arizona workers’ compensation. These settlements can cover medical care costs, including anticipated treatment and rehabilitation expenses, and may come as monthly or lump sum payments.

When you settle with the insurance company, you will agree to relinquish rights you would otherwise have through workers’ compensation in return for the settlement offer. Here are some of the considerations to account for when negotiating a workers’ comp settlement:

  • If an insurance company disputes some of your injuries, a settlement may include payment in exchange for relinquishing the right to pursue those injuries through workers’ compensation. These settlements nullify your claim, preventing you from receiving further compensation for additional medical treatment.
  • Some settlements can have the insurer continue to reimburse you for active, ongoing medical treatment and include a lump sum that is meant to cover any anticipated future medical expenses. However, a lump sum settlement generally does not consider long-term inflation effects on your cost of living or medical treatment. The longer your anticipated future needs are, the more you will need to consider whether a structured settlement would be better for you.
  • Some settlements are full and final, meaning the lump sum covers all current and future medical treatment and any workers’ comp payments. Arizona law requires that the amount also considers your age and life expectancy.
  • If the original full-and-final settlement does not completely cover your needs, they can be difficult to reopen. 
  • The ICA reviews full-and-final settlements to confirm their compliance with Arizona legal requirements. They do not ensure that a settlement is in your best interest.
  • Settlements can affect your ability to receive future Social Security Disability Insurance benefits you may be entitled to now or in the future.
  • A lump-sum settlement should consider federal Medicare restrictions on how you use funds for future medical expenses related to workplace injuries.

What Can Affect the Speed of Reaching a Settlement Agreement?

You may face a longer settlement delay if there is a significant difference between your and the insurance company’s claim value estimate. If this gap is small, settling may not take long.

The bigger it gets, however, the more you may need to file a legal claim for a hearing through the ICA to ensure you receive a fair settlement. This hearing takes place before an administrative judge and works in much the same way as a lawsuit in court, which will also cause delays in settlement. 

On the other hand, showing an insurance company that you are serious about taking settlement through an ICA hearing can be beneficial. If you’re willing to fight, the insurance company may be more flexible in settlement negotiations.

A settlement frequently consists of multiple rounds of negotiations. Deciding when to close negotiations is a balancing act. Insurers often start with a low settlement offer, but resisting the temptation of a quick deal can increase your chances of a better payout in the long run.

How Long Will It Be Before I Receive My First Settlement Check?

If you ultimately decide to accept a full and final settlement, under Arizona law (ARS 23-941.01(G)), payments should be issued within 15 days of the award being approved and finalized.

Talk to a Phoenix Workers’ Compensation Lawyer Today

Understanding how long it takes to reach a workers’ compensation settlement agreement claim does not have a simple, black-and-white answer. Factors affecting the settlement phase of your claim can begin as soon as you file your initial claim for benefits after your injury occurred, and not everything is under your control.

Generally, a settlement can take as little as a few weeks to several months to finalize. Everything depends on the unique facts of your case and, to a large extent, on the quality of the legal representation you have on your side.

At the Matt Fendon Law Group, our experienced workers’ compensation lawyers are ready to help you with all aspects of your workers’ compensation claim, including negotiating a settlement agreement with your employer’s insurance company. 

We can help you:

  • Understand what is happening throughout the claims process
  • Deal with your employer
  • Negotiate with the insurance carrier
  • Receive the compensation you deserve
  • Represent you at any claims hearing
  • Handle your appeal
  • File a civil lawsuit

Call us today at 800-229-3880 to schedule a confidential, free consultation with an experienced workers’ compensation lawyer in Phoenix.

You can also contact us online to ask a question or to schedule a free consultation.

We have offices in Phoenix, Prescott, Flagstaff, Scottsdale, and Tucson. Let us show how we can help you with your Phoenix workers’ comp case. We will provide straightforward advice, help you understand your legal options, and zealously represent you so you receive the most favorable outcome possible.

Visit our nearest workers’ compensation law firm.

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