Study: Lump-sum settlements from workers compensation encourage retainment

07/18/2012

In what may come as a surprise to some businessowners, employees who are injured on the job are more likely to return to work after receiving lump-sum settlements from workers compensation, a new report indicates.<br/><br/>According to the Workers Compensation Research Institute, which followed more than 2,100 workers in Michigan who were injured at work and received a lump-sum payment from workers compensation, 78 percent of those injured did not change their employment status while on disability. WCRI says this is an indication that they returned to work once fully healed.<br/><br/>Bogdan Savych, lead author of the report and public policy analyst at WCRI, explained why the study&#39;s results are noteworthy.<br/><br/>&ldquo;This is an important study because we need to find out whether settlements discourage return to work for injured workers who want to return to work or assist them in closing this chapter of their life and moving on with their career,&quot; said Savych. My hope is this research will help policymakers and other stakeholders understand how workers respond to receiving a lump-sum settlement.&quot;<br/><br/>Workers compensation is an insurance package that&#39;s required of businesses in most states, as it&#39;s separate from standard professional insurance.