We are often asked the question, “Will my settlement be reduced if I go back to work”?
The simplest answer is yes.
And that is because one of the categories of damages/losses that make up a settlement in any personal injury case is the loss of past or future income. If someone returns to work after their injury, their past and/or future income loss lessens thus lessening the overall value of the case.
The More Important Question to Ask
The better and more important question that should be asked is, “How will returning to work impact my case overall”?
Returning to work does not negate any income losses up to the date of the return to work and it does not necessarily eliminate the potential for future income losses.
How Income Losses Are Actually Calculated
Income loss is determined by comparing what a person would have earned if they were not injured to what they are able to earn after the injury.
The analysis isn’t always simple and, in many cases, there are claimable losses – often significant – that can still be made even if a person returns to work after an accident.
In many cases, there are multiple variables that need to be considered. Is the person returning to the same job(s), doing the same duties or earning the same income? Are they as likely to be promoted or get a raise? Are they missing regular time or overtime pay? Will they be able to work until their retirement? If they lost their job, will they be able to easily find another job?
Returning to work when medically able is generally good for people’s mental health and financial stability but also enhances a person’s credibility with insurance companies which can actually help get a good settlement. Both of which are of greater importance than the overall value of any case.
Get Medical and Legal Advice Before Returning to Work
Returning to the workforce after an injury is an important decision and should only be made after consulting both a medical professional and a legal professional. This ensures you have a full understanding of the impact that doing so might have on your health, wellbeing, finances, and your case.
If you, or someone you know, have questions about how a return to work might impact your legal rights feel free to contact us at Beckett for a free consultation or review of your case. Call us today – 1-866-647-4994.
