Injured workers settle their workers comp cases everyday without attorneys – this is nothing new. But what most people don’t understand is that by signing a settlement agreement without consulting a workers compensation lawyer can cause you all sorts of problems. Many times, as part of the settlement, your employer will ask you to sign a separate release of any and all claims that you currently have, or may have in the future, against your employer. For injured workers without an attorney, this is dangerous territory.
There are a number of issues that could potentially come up in this separate release, and if you don’t have a workers compensation lawyer helping you to negotiate this agreement, you could run into several problems later on. Here are the main issues that we frequently see:
- The Settlement agreement does not comply with Industrial Commission rules and NC Statutes – making it unenforceable if you have second thoughts
- You may be asked to give up other substantive law claims against your employer, such as claims of discrimination, retaliation, wrongful discharge, etc.
- You may be giving up your rights to separate employee benefits, such as ERISA or COBRA benefits.
- Many injured workers are asked to “resign” their position in connection with signing the settlement contract – this could have a negative impact if you are in the process of applying for, or are already receiving unemployment benefits
- Often times, we see provisions stating that the injured workers will not file any lawsuits or participate in any lawsuits against the employer.
- Many releases contain a provision indicating that the injured workers will never again seek employment from the defendant employer. This can be a problem if you live in a small community where there is one main employer for most of the population, and nowhere else to work
The bottom line is that if you have decided to settle your case without the advice of counsel, there are a number of pitfalls that you can run into when signing a settlement agreement and release. Consider speaking with a workers compensation lawyer if you have questions about this. You may contact us at (919) 460-5422 or use our online form.