Workers' Comp Settlements in Utah

Claims can be settled in two ways: a compromise settlement, used when there is a real dispute over whether a benefit is owed, and a commutation, used when the parties agree a benefit is owed and replace the regular payments with a lump-sum estimate of future compensation and medical costs. The Labor Commission says the law requires the Commission to approve these agreements even when the worker and insurer have agreed. For a compromise, the Commission checks that the claim was denied for a legally allowed reason, that a real dispute exists and that the compromise is fair; a commutation is allowed only under special circumstances, considering factors such as future medical needs, the worker's age and ability to return to work.

Temporary total disability benefits are paid as long as the disability is total, but may not exceed 312 weeks over a period of 12 years from the date of injury. Temporary partial disability benefits likewise may not exceed 312 weeks and may not continue more than 12 years after the injury. Permanent total disability benefits have an initial 312-week entitlement; for injuries on or after July 1, 1994, the insurer or self-insured employer is responsible for lifetime permanent total benefits.

Industrial Accidents Division staff can explain an injured worker's rights under the Utah Workers' Compensation Act at no charge, but cannot give legal advice or represent you. Utah law also lets the Labor Commission award an "add-on" attorney fee, paid by the insurance carrier on top of the benefits and any agreed attorney fee, when a represented worker wins a medical claim the carrier unconditionally denied and any indemnity award is under $5,000; at the commission level it is the lesser of 25% of the medical expenses awarded or $25,000.