Will Workers Comp Pay for Pain and Suffering?

No. Workers’ Compensation will not typically pay for pain and suffering. Non-economic damages can be difficult to collect, and workers’ compensation insurance will only pay them under certain circumstances.

Your non-economic damages may still be collectible from third parties, and a workers’ compensation attorney can help you determine who is liable and whether or not you can receive non-economic compensation.

What Is Pain and Suffering?

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

Pain and suffering are considered a non-economic item. These 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. When you are injured, your life changes and these changes may be difficult for you to accept and may make life harder for you. Additionally, your injury could cause you to suffer from pain for days, weeks, or even months.

Is Pain and Suffering Taxable?

Possibly. 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. 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.

To avoid reporting issues, attach a statement of the compensation you receive to your tax return. 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?

Pain and suffering is calculated using two different methods.

• 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 is advisable to gain a ballpark figure that you may be owed for your pain and suffering. You can fine-tune a dollar amount in negotiations but this is a good starting place.

Remember that an insurance company adjuster is not your friend. Their job is to pay you the lowest amount possible for your injuries. This means that regardless of the method they use, they will argue to use the smaller multiplier or the smaller amount between the two methods of computation.

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

Yes. There are three instances when workers’ compensation will pay for pain and suffering.

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 worker’s 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 workers’ 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 a Settlement?

You can attempt to negotiate pain and suffering as part of a claims settlement, but keep in mind this will be apart from your workers’ compensation claim. Hiring an experienced personal injury attorney can help you build a case for your pain and suffering and help you manage expectations about the amount you will be able to recover. You will need to be able to prove how your injuries have caused you pain and discomfort, and how you have been emotionally impacted.

Collecting character testimonies, mental health therapy visits, and medical bills, and describing (in detail) how your life has changed since your accident are helpful ways to build your case 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 Compensation for Pain and Suffering if Workers’ Comp Won’t Pay?

If you have received workers’ 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.

Talk to a Lawyer Today if You’re Having Difficulty Receiving Workers’ Comp Benefits

Workers’ compensation is a benefit for people who have been injured or become sick on the job. These benefits help people when they need it 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 consultation.