What You Should Know About Workers’ Compensation Mediation

The process of navigating a workers’ compensation claim can be daunting – the paperwork, the appointments, and the endless emails. Mediation serves as a beneficial tool for resolving conflicts without the need for lengthy litigation. Understanding the mediation process can help both parties achieve a fair and efficient resolution.

What is Workers’ Compensation Mediation?

Workers’ compensation mediation is a voluntary process where a neutral third-party mediator helps the disputing parties—typically an injured worker and the employer or their insurance carrier—reach a mutually acceptable agreement. Mediation aims to facilitate communication, identify issues, and explore potential solutions that satisfy both parties. Almost always, the neutral third party is a workers’ compensation judge who is not assigned to your case. However, the mediator does not issue decisions or impose solutions. Instead, the mediator acts as a facilitator, guiding the discussion, encouraging open communication, and helping the parties understand each other’s perspectives. The mediator’s goal is to assist the parties in finding common ground and reaching a voluntary agreement.

In a workers’ compensation case, mediation can be mandatory or voluntary. Beginning in 2006, parties to a workers’ compensation claim were required to attend a mandatory mediation session once either side files a petition. The goal of mandatory mediation is to try to encourage settlements and ensure timely decisions. Though it is not mandatory to reach a settlement, the mediator often requires that all parties attend a mandatory mediation. Voluntary mediation occurs at the request of the parties. It follows the same procedures as mandatory mediation – happening in front of a neutral third party in the presence of all parties – but can be requested as many times as necessary at the agreement of both parties.

Mediation may result in a settlement. In the context of workers’ compensation, a settlement is a formal agreement between an injured worker and their employer (or the employer’s insurance company) to resolve a workers’ compensation claim. This agreement often involves the injured worker receiving a lump sum payment in exchange for releasing the employer from any further liability related to the injury. The lump sum settlement typically covers medical expenses, lost wages, and other benefits the worker might be entitled to under workers’ compensation laws. Once a settlement is reached and approved, it usually becomes legally binding, thereby concluding the dispute and preventing any future claims related to the same injury.

Mediations, especially those that result in settlements, can speed up the litigation process to save time, money, and resources. Mediation is a useful tool when resolving your case, as it fosters a collaborative environment that can help preserve professional relationships. This is particularly important in workers’ compensation cases, where the employee may return to work after the dispute is resolved.

How to Prepare for Your Workers’ Compensation Settlement Conference

1. Consult with an Attorney: If possible, consult with an experienced workers’ compensation attorney before mediation. They can provide legal advice, review your case, and offer strategies for negotiation. An attorney can ensure that your rights are protected and help you navigate complex legal issues that may arise during mediation. The experienced attorneys at Stern & Cohen are here to help – call today for a free consultation.
2. Understand Your Case: If you are represented by an attorney, you may not be required to attend the mediation, and your attorney may appear on your behalf. However, preparation is the key to maximizing the effectiveness of the mediation process. Be sure to understand the timeline of your claim and locate any relevant medical or employment records.
3. Consider Your Goals: Identify your priorities and goals for mediation. These may include financial compensation, medical treatment, or a return-to-work plan. Make sure you stay flexible and willing to explore different options and solutions. If an offer does not meet your objectives, you are not required to settle. The parties may proceed with litigation. Consider working with an attorney to determine whether a settlement offer aligns with your long-term and short-term goals.
4. Understand Your Starting Demand: The mediation process begins with the employee’s starting demand. A starting demand is typically an amount more than what is expected of the insurance company to pay. As negotiations progress, the mediator works back and forth between the parties, aiming to adjust the settlement amount gradually towards a mutually agreeable middle ground. An attorney will help you ensure your settlement is a fair compensation for your injury.

Final Thoughts

Workers’ compensation mediation offers a valuable alternative to traditional litigation, promoting efficiency, cost-effectiveness, and preserving relationships. By understanding how mediation works and preparing effectively, you can help ensure any solutions meet your needs. Consider mediation as a constructive approach to resolving your workers’ compensation issues. Contact the attorneys at Stern & Cohen to help you with your claim today.