Understanding Workers’ Compensation Liens in Missouri
If you receive workers’ compensation benefits for a workplace injury, Missouri law allows your employer or its insurer to claim a lien on any subsequent personal injury recovery against a third party. This means they can seek repayment of the benefits they’ve paid from your settlement or judgment.
Detailed Answer
What triggers a workers’ compensation lien?
Under Missouri Revised Statutes section 287.220, your employer or insurer gains a subrogation lien when it pays for your medical care, disability or wage benefits. Once you pursue a third‐party claim (for example, if a negligent driver causes your injury), the employer may assert its right to repayment from your recovery. See RSMo § 287.220: revisor.mo.gov/main/OneSection.aspx?section=287.220.
How does the lien affect your net recovery?
When you resolve a third‐party claim, the lien attaches to the gross proceeds of your settlement or judgment. In practice, you and your attorney negotiate how much of the recovery goes to pay liened benefits. Courts in Missouri typically allow you to deduct attorney fees, litigation costs and certain case‐related expenses on a pro rata basis before reimbursing the employer. For instance, if you recover $100,000 and have $20,000 in legal fees, your net recovery is $80,000. If the lien equals $20,000, it reduces your net share accordingly.
Steps to address a workers’ comp lien:
- Identify all benefits paid under your workers’ compensation claim (medical, temporary or permanent disability, vocational rehab).
- Calculate attorney fees and case expenses tied to your third‐party claim.
- Work with your attorney to allocate costs and negotiate a fair lien payoff.
- Document any agreed reduction or compromise in writing to avoid future disputes.
Common issues: Disputes often arise over whether attorney fees apply to lien amounts or whether certain benefits (like vocational rehab) count toward the lien. Always confirm calculations under RSMo § 287.220 and relevant case law.
Helpful Hints
- Track every dollar of workers’ comp benefits and third‐party recovery costs.
- Notify your attorney about any comp benefits before filing a third‐party claim.
- Negotiate lien repayments based on net, not gross, settlement funds.
- Review the exact language of RSMo § 287.220 with a legal professional.
- Consider alternative dispute resolution to settle lien amounts quickly.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss how Missouri workers’ compensation liens may apply to your personal injury recovery.