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Do lump sum awards get employees back to work sooner?

When someone is hurt or becomes ill while working it is possible that they could secure workers’ compensation benefits from his or her employer. While most employers in the state of Pennsylvania must carry workers’ comp insurance, employees in need of the payments sometimes struggle with securing them.

A study conducted several years ago indicates that at least where lump sum payments are concerned, employers might want to think twice. Conducted by the Workers Compensation Research Institute’s, the study set out to determine whether lump sum settlements encourage or discourage workers from going back to work.

The study focused on a total of 2,138 workers who were hurt while working and who all received a lump-sum settlement. Those workers were followed for a period of four years. Following the receipt of the lump-sum payment, the employment status of 78 percent of the individuals remained the same—either employed or unemployed. Perhaps more telling is that with the exception of older workers, on average more workers who were hurt and received a lump-sum settlement, went back to work, as compared to those that did not.

The results of the Return to Work after a Lump-Sum Settlement study may come as a surprise to some. Nonetheless, they are worth paying attention to. Since it is in the best interest of most employers and workers to get back to work, employers might want to reconsider their approach.

In some situations workers struggling to secure workers’ compensation benefits could benefit from working with a lawyer.

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