Will Workers Comp Pay for Pain and Suffering?

Workers’ compensation benefits are designed to cover medical treatment, partial wage replacement, and disability benefits after a work-related injury or illness. However, pain and suffering, including physical discomfort, emotional distress, and loss of enjoyment of life, are considered non-economic damages and are not included in standard workers’ comp benefits.

That said, there are limited situations where an injured worker may be able to pursue pain and suffering outside of workmans’ comp, such as through a third-party personal injury claim or in cases involving employer misconduct. An experienced workers’ compensation attorney can help determine whether any of these exceptions apply to your case.

What Is Pain and Suffering Compensation?

Injury claims cover two types of damages: economic damages and non-economic damages. Economic damages are those that can easily be quantified, like missed pay or medical bills.

Pain and suffering is considered a non-economic item. Non-economic damages are items that do not have a specific dollar amount and must be determined by previous case law and the individual claim details. 

Pain and suffering refers to physical discomfort and emotional distress brought on by your injury. After an accident, even routine activities may become more difficult, and adjusting to these changes can be both physically and emotionally challenging. Your life changes, and these changes may be difficult for you to accept and may make life harder for you. Injuries may also lead to ongoing pain that lasts days, weeks, or even months, significantly affecting your comfort, independence, and overall quality of life.

Is Pain and Suffering Taxable?

Possibly.  Whether pain and suffering compensation is taxable depends on the nature of the claim and how the damages are classified. If your pain and suffering is not the result of a personal injury or physical illness, the settlement amount you were rewarded may be considered taxable income. However, if the pain and suffering award is unrelated to a physical injury, such as emotional distress alone, some or all of the settlement may be taxable.

Additionally, if you receive compensation for pain and suffering, you may be able to reduce the amount you report if:

• You had related medical expenses that you paid for but did not deduct from your taxes; or
• You had medical expenses deducted for mental anguish and did not get a tax benefit.

Because tax treatment can vary based on individual circumstances, it is important to properly document the compensation you receive and attach a statement to your tax return when required. Hiring a personal injury attorney is useful because they can connect with a tax professional who understands the implications of your settlement amounts and how to properly file your taxes.

How Is Pain and Suffering Calculated?

There is no single formula for calculating pain and suffering. Instead, insurers and attorneys commonly rely on two general methods to estimate the value of non-economic damages. These approaches are used to arrive at a reasonable starting point during settlement discussions.

• The Multiplier Method. This method adds the cost of your medical bills and multiplies them by either 1.5 (the low end) or 4 or 5 (the high end). The multiplier is determined by the severity of your injuries, the prospect of your recovery, the impact of your injuries on your day-to-day life, and who is liable for your injury.
• The Daily Rate Method. The second approach is a “per diem” calculation that calculates a daily rate for the number of days you have had to live with pain, discomfort, and inconvenience as a result of your accident. The per diem rate is usually calculated by taking your yearly earnings and dividing them into a daily amount; that figure is then used as your per diem rate.

Using both methods can help establish a realistic range for pain and suffering damages, which can then be adjusted during negotiations based on the specific details of the case.

It is also important to remember that insurance company adjusters are not focused on maximizing your compensation. Their goal is to resolve claims for as little as possible, which often means arguing for a lower multiplier or the smaller value between calculation methods. Having experienced legal representation can help ensure your pain and suffering is evaluated fairly and supported with appropriate documentation.

Are There Exceptions When Workers’ Comp Pays for Pain and Suffering for Injured Workers?

Yes. In most cases, workman’s compensation does not pay for pain and suffering. However, there are limited circumstances where an injured worker may be able to pursue pain and suffering damages outside of a standard workers’ comp or workman’s comp claim. These situations are exceptions to the general rule and depend heavily on the facts of the case.

Willful Misconduct

When an employer’s willful misconduct directly causes the employee’s illness or injury, the injured or ill employee may be eligible to receive pain and suffering payouts. However, this willful misconduct is not the same as negligent behavior and refers to intentional acts that result in the employee being injured or becoming ill.

Uninsured Employer

If your employer does not carry workers’ compensation insurance, you may be able to file your claim directly against your employer and include a claim for pain and suffering. Most states require that employers carry workman’s’ compensation insurance, but that does not mean that all employers play by the rules.

Third-Party Liability

If your injury is the result of a third party, you may file a claim for pain and suffering with the third party. Examples of third-party liability could include a machine manufacturer, a contracted worker, or a property owner.

Can You Negotiate Pain and Suffering as Part of Your Compensation Benefits?

Yes, but it is important to understand that any negotiation for pain and suffering occurs outside of your workers’ compensation or workmans comp claim. Workers’ comp covers medical expenses, lost wages, and disability benefits, but non-economic damages like pain and suffering are generally not included. To pursue these damages, you would typically need a separate personal injury claim or third-party lawsuit.

Hiring an experienced personal injury attorney can help you build a strong case for pain and suffering while setting realistic expectations for potential recovery. You will need to demonstrate how your injury has caused ongoing physical pain, emotional distress, or significant changes to your daily life.

Supporting evidence can strengthen your claim and may include:

• Medical records and therapy visits documenting your pain and recovery
• Character statements from family, friends, or coworkers describing the impact of your injury
• A detailed account of how your life has changed since the accident

By carefully documenting both the physical and emotional effects of your injury, you increase the likelihood of achieving fair compensation for pain and suffering.

Does a Permanent Disability Rating Affect Compensation for Pain and Suffering?

Yes. A permanent disability rating helps provide a quantifiable basis for a person’s total disability. Using this rating, it is easier to calculate compensation and benefits for the injured party.

A permanent impairment rating is used to help calculate the extent of your pain and suffering-related damages.

How Can I Seek Fair Compensation for Pain and Suffering if Workers’ Comp Won’t Pay?

If you have received workmans’ compensation but they will not pay for your pain and suffering, you still have solutions available. You can file a personal injury lawsuit against your employer to recover non-economic damages even if you have received workers’ compensation benefits.

Should I Hire a Lawyer to Help Me Sue for Pain and Suffering?

It is always advisable to hire an attorney to help you with your claim. Pond Lehocky is the largest workers’ compensation and Social Security disability firm in the country. We can help ensure your claim is given the attention it deserves. From start to finish, we will help file documents accurately and on time, negotiate settlements on your behalf, collect evidence to help build your case, and file a lawsuit against your employer on your behalf when and if necessary.

If you need to recover pain and suffering compensation, our team of experienced attorneys can help you collect all the information necessary to document your life changes and also help you determine a monetary amount that is fair for settlement. By hiring Pond Lehocky, you will avoid accepting lowball settlement offers and ensure your rights to compensation are protected.

Call Us for a Free Consultation if You’re Having Difficulty Getting Non-Economic Damages

Workmans’ compensation is a benefit for people who have been injured or become sick on the job. These benefits help people when they need them most, but it is not likely that they will cover pain and suffering. To collect monetary payouts for pain and suffering, you will need to consider filing a lawsuit against your employer directly.

Pond Lehocky will take your case seriously and fight for the maximum compensation possible while you recover and move forward with your life. Contact us today to schedule a free case review.