Resolving a Workers’ Compensation Lien on a Personal Injury Claim in Ohio

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.

Detailed Answer

In Ohio, when you receive a workers’ compensation award and later bring a separate personal injury claim—such as against a negligent third party—your employer or the Bureau of Workers’ Compensation (BWC) may assert a lien on any recovery you obtain. Ohio Revised Code § 4123.931 governs that lien and outlines how it must be resolved before you disburse settlement funds.

1. Identify and Quantify the Lien

Begin by requesting a written statement of your lien balance from the employer or the BWC. Under ORC 4123.931, they must provide the total amount of benefits paid, including medical and wage-loss benefits, plus any statutory interest. You should receive this within 30 days of your request.

2. Provide Notice to All Parties

Once you know the lien amount, notify the defendant (or the defendant’s insurer) and your attorney of record. Include the lien amount and a copy of the lien statement. This notice satisfies procedural requirements and prevents delayed objections.

3. Negotiate a Resolution

Ohio law allows you to negotiate the lien amount in certain circumstances. If liability is disputed, you may negotiate a reduction. Both parties often enter into a stipulation that outlines how much of the settlement will satisfy the BWC’s subrogation lien. Any reduction must be approved by the BWC or the Industrial Commission of Ohio.

4. Obtain Approval from the Industrial Commission

File a motion with the Industrial Commission of Ohio (IC) for approval of the lien resolution. Include the settlement agreement and stipulation regarding lien payment. Under ORC 4123.93–.931, the IC must approve the deduction before funds disburse. Approval prevents future clawback actions by the BWC.

5. Distribute Settlement Funds

After IC approval, distribute the funds according to the approved stipulation. First, pay the BWC or employer the agreed-upon amount. Then distribute remaining settlement proceeds to your attorney and yourself. Ensure your attorney files a final report with the IC documenting compliance.

6. File Final Reports and Close the Case

Within 30 days of distribution, your attorney should file a closing report with the IC, indicating that the lien has been satisfied. This filing formally closes the lien and removes any future claims on the settlement funds.

Helpful Hints

• Always request the lien statement in writing to verify the exact balance. (ORC § 4123.931)
• Keep clear records of all communications with the BWC, employer, and opposing counsel.
• Consider negotiating early to avoid administrative delays with the Industrial Commission.
• Secure IC approval before disbursing any settlement funds to prevent clawback.
• Consult an attorney familiar with Ohio workers’ compensation and personal injury subrogation.

References

• Ohio Revised Code § 4123.931: codes.ohio.gov/4123.931
• Ohio Revised Code § 4123.93: codes.ohio.gov/4123.93
• Industrial Commission of Ohio: ic.ohio.gov