Workers' Comp Settlements in Rhode Island

Yes. The parties may petition the Workers' Compensation Court to approve a settlement of future liability for a lump sum or structured periodic payments. A judge may grant it if the lump sum is shown to be in the best interest of all parties, keeping in mind the law's policy that compensation be paid weekly; the chief judge may reject a proposed settlement worth more than 104 weeks of partial incapacity compensation. The settlement must be placed on the record in open session, and an insured employer must have been told of the possible effect on its premium and given a chance to object. On payment, the employer and insurer receive a full release. The employee's attorney fee is set by the court and capped at 20 percent.

Total incapacity benefits have no fixed week limit in the statute. Partial incapacity benefits are limited to 312 weeks; weeks paid for total incapacity do not count toward that period. At least 26 weeks before the 312 weeks end, the employer or insurer must notify the worker and the director of its intent to stop benefits and of the worker's right to ask for continuation. The worker may petition the Workers' Compensation Court, and partial benefits continue if the worker shows that the partial incapacity is a material hindrance to getting suitable work.

Rhode Island law makes the employer pay costs, including the employee's counsel fees and expert witness fees, when the employee successfully prosecutes a petition (for example, for compensation or medical expenses) or successfully defends against an effort to reduce or end benefits. Fees are awarded by the judge, appellate panel or supreme court for the services rendered at that level and made part of the decree, and the employee's attorney may not accept any other or additional fee for that petition. The court says an attorney is not required but is recommended; the Rhode Island Bar Association gives referrals at 401-421-5740.