Disclaimer: This article does not provide legal advice. It offers general information about Ohio law only.
Detailed Answer
When you suffer a workplace injury in Ohio and the Ohio Bureau of Workers’ Compensation (BWC) pays benefits, the BWC or your employer’s insurance carrier obtains a lien against any third-party recovery. Under Ohio Revised Code Section 4123.931, the BWC may recover the benefits it paid from the net proceeds of any settlement, judgment, or other compensation you receive from a negligent third party. (See Ohio Rev. Code §4123.931.)
Here is how the lien typically affects your final amount:
- You pursue a third-party claim for damages like pain and suffering, lost wages, or medical expenses.
- If you secure a settlement or verdict, the BWC files a lien for the benefits it paid.
- The lien reduces the gross recovery dollar-for-dollar. For example, if you settle for $100,000 and the BWC paid $30,000 in benefits, you must reimburse $30,000.
- Your attorney fees and case costs are calculated before or after the lien deduction depending on your fee agreement. Often, fees apply only to your net recovery, not the amount required to reimburse the BWC.
- If a court allocates the settlement into separate portions (e.g., medical expenses vs. pain and suffering), you may minimize the lien by allocating more to non-lienable categories. However, the BWC has the right to review any allocation to ensure it matches Ohio law.
- After reimbursement, you keep the remainder. In our example, after repaying $30,000, you would net $70,000 minus attorney fees and costs.
- If your third-party recovery does not cover the full lien, Ohio law still obligates you to pay the balance. You may negotiate a payment plan with the BWC or seek a lien reduction, but the statutory reimbursement obligation remains.
Helpful Hints
- Review your fee agreement carefully to understand how attorney fees apply to lien reimbursements.
- Work with your attorney to allocate settlement proceeds strategically between damages categories.
- Document all workers’ compensation benefits you received to verify the lien amount.
- Contact the BWC early in negotiations to confirm the lien amount and avoid surprises at settlement.
- Discuss the possibility of a structured settlement to handle repayments over time if needed.
- Understand that the BWC lien survives even if you dismiss your third-party claim before trial.
- Seek experienced counsel to navigate procedural steps under Ohio Rev. Code §4123.931.