Workers' Comp Settlements in Wisconsin

A workers' compensation claim may be resolved by compromise, stipulation or agreement without a hearing, and the Department of Workforce Development's administrative law judges may approve, review, set aside, modify or confirm settlements and compromises. A settlement is treated as a compromise only if the word "compromise" appears in the stipulation; otherwise further claims are not barred. The Department may review and set aside, modify or confirm a compromise within one year after it is filed or an award based on it is entered, and the employer, insurer and employee have equal rights to seek that review. Payments under a compromise, including a lump sum, may be paid directly to the employee.

Temporary disability benefits are payable weekly during the disability; the statute does not set an overall maximum number of weeks for temporary total disability. Temporary disability includes time reasonably needed for training in the use of artificial members and appliances, and time spent in approved vocational retraining; temporary disability paid only because of retraining is limited to 80 weeks unless the Department of Workforce Development determines that additional training is warranted. If a renewed period of temporary disability begins more than 2 years after the injury, it is paid at the maximum rate in effect when the new period begins (or the same proportion of it).

Wisconsin law caps attorney (or representative) fees in worker's compensation cases at 20 percent of the amount at which the claim is compromised, awarded or collected, unless the department has authorized otherwise. Where liability is admitted, the amount is undisputed and no hearing or appeal is needed, the fee may not exceed 10 percent and no more than $250. On application, the department may set the fee and order it paid from the award, directly to the attorney. DWD notes fees and costs are deducted from the worker's payments, and settlements must be approved by the Worker's Compensation Division.