Detailed Answer
When you receive a personal injury settlement and your case involves a prior workers’ compensation claim, Wisconsin law gives your employer or its insurer a lien for recovery of benefits paid under Wis. Stat. § 102.29. To verify and satisfy this lien, follow these key steps:
- Identify Potential Lien: Determine if you received workers’ compensation benefits related to the same injury. Wis. Stat. § 102.29(1) grants a lien against third-party recovery for the amount of benefits paid.
- Request Lien Statement: Ask the employer or insurer for a detailed statement of compensation paid, medical expenses, and authorized costs. They must include medical records, benefit dates, and calculations.
- Verify Amounts: Review the statement to ensure accuracy. Compare listed benefit amounts against your own records or contact the Wisconsin Department of Workforce Development (DWD) if discrepancies arise.
- Determine Pro Rata Share: Under Wis. Stat. § 102.29(4), you must allocate fees and expenses proportionally between the lien and your attorney’s fees. This ensures fair distribution of costs.
- Obtain DWD Approval: Wisconsin requires DWD to approve any settlement involving a workers’ compensation lien. File a petition with the DWD’s Office of the Commissioner of Insurance, attaching the settlement agreement and lien statement.
- Satisfy the Lien: After approval, pay the employer or insurer the approved lien amount out of your settlement proceeds. Obtain a lien release or letter of satisfaction from the employer or insurer.
- File Release with Court: Submit the lien release and DWD’s approval to the court handling your personal injury claim. This ensures clear title to settlement funds and avoids future disputes.
Helpful Hints
- Start early: Address potential liens before finalizing your personal injury settlement.
- Maintain Records: Keep copies of all benefit statements, medical bills, and correspondence with your employer or insurer.
- Communicate: Inform your personal injury attorney about any prior workers’ compensation claims.
- Budget for Costs: Plan for attorney’s fees and expenses related to lien verification and DWD filings.
- Consult DWD Resources: Visit the Wisconsin DWD website for forms and guidance: https://dwd.wisconsin.gov/wc/.
Disclaimer: This article is for informational purposes only. It does not constitute legal advice. Consult a licensed attorney for guidance tailored to your situation.