Calculating Workers’ Compensation Settlement Amounts in Arizona

In the past, employees in Arizona were not given the option of settling their workers’ compensation claims. Fortunately, however, Arizona law now permits settlements, giving employees an additional compensation option following a work-related injury. Below is an overview of how workers’ compensation settlement amounts are calculated in Arizona.

What is a Workers’ Compensation Settlement?

A workers’ compensation settlement gives financial compensation to an employee who has sustained a work-related injury.  Most states allow employees to receive workers’ compensation settlements in either a lump sum or installments. The process of calculating a workers’ compensation settlement amount depends on a number of factors, including the severity, location, and type of injury.

THE CALCULATION PROCESS

It is recommended that employees wait until all medical treatments are completed and all injuries have improved before filing a workers’ compensation claim. After doing so, an injured employee must compile a number of items to begin the workers’ compensation settlement calculation process, including:

• Billing statements;
• Medical records;
• Accident reports; and
• Witness statements.

While every case is different and many factors are considered when calculating a workers’ compensation settlement amount, most settlements are determined using the factors below.

• Bodily impairment – Most settlements consider the percentage of bodily impairment suffered by the injured employee. In order to calculate this percentage, a doctor’s examination is necessary. During such an examination, the physician evaluates the employee’s injury and determines the level of impairment the injury has caused.

• Comparison – Once the bodily impairment percentage is established, it is compared with Arizona’s laws on the estimated time it should take for an injury to heal and the amount of compensation the employee is entitled to.

• Wage amount – Following the above steps, the bodily impairment percentage is multiplied by the employee’s wage amount.

• Future medical expenses – Future medical expenses and medical treatments are also calculated once initial treatments have concluded. The estimated amount of future medical expenses is then added to workers’ compensation settlement total.

• Legal fees – Finally, legal fees and costs are added to the final settlement amount.

Finalizing the Settlement

All workers’ compensation settlements must be approved by the Arizona Industrial Commission. Approval is obtained by filing documentation with the Commission. However, this process can be complicated, so the assistance of an Arizona workers’ compensation attorney is highly recommended.

Arizona Worker’s Compensation Attorneys

All injured Arizona employees should approach workers’ compensation settlement offers with extreme caution. Before settling a claim, it’s important to understand exactly what you are giving up and what you are receiving in exchange. In order to ensure that you are fully compensated for your injuries, we highly recommend consulting with an experienced Arizona workers’ compensation attorney prior to beginning the settlement process. Therefore, if you or a loved one have been injured on the job, please contact Arizona Injury Law Group, Attorneys at Law, PLLC, as soon as possible for a free consultation. Call 602-346-9009 to speak with one of our experienced attorneys today.