How do you achieve closure after a workers’ compensation claim? Chances are, you’ve been involved in filing and following through with all of the necessary steps of a claim for months.
It can be incredibly frustrating trying to navigate a workers’ compensation case without a clear solution. Fortunately, there is something called the clincher agreement that could offer some much-needed resolution.
In this article, we will explain what the clincher agreement is, how it works and when to use one. So, if you want to make sure your workers’ compensation case ends with a positive resolution then keep reading!
What is the Clincher Agreement?
A clincher agreement is there to provide final resolution for your workers’ compensation case. The Clincher Agreement is a final resolution of your workers’ compensation case. It serves as a release agreement between you and the insurance provider, lawyer or adjuster in which you agree to settle your case in return for money.
In addition to settling the terms of compensation, the Clincher Agreement also releases both parties from future obligations should additional complications arise. That means if you experience a flare up of aggravation or even exacerbate an already existing condition due to work, you will be exempt from follow up examination or financial settlement with the insurer.
The Clincher Agreement outlines everything that was agreed upon during past negotiations and informs all parties involved exactly what is expected from each individual. The agreement should also include timelines of when payments should be made, how benefits will be distributed once they are approved.
This agreement states that all parties have reached a final agreement, and it is only allowed by the North Carolina Industrial Commission when it meets all of the requirements of Rule 502. So, rest assured that there are legal steps that your employer must take to ensure that you have been treated fairly.
What are the Benefits of the Clincher Agreement?
The clincher agreement has several benefits that make it an ideal resolution for a workers’ compensation case. With this agreement, you can receive the compensation you deserve without having to go to court or through a lengthy legal process.
First and foremost, the clincher agreement is designed to provide fair and reasonable compensation more quickly than traditional legal processes. This means that you will not have to wait months or even years to receive the compensation that is rightfully yours. Furthermore, because this option requires no trial or hearing, it eliminates costs associated with a traditional court case such as lawyer fees, court costs, expert testimony, etc.
Another great benefit of the clincher agreement is that it often results in a much lower settlement payment amount than would be available in a traditional lawsuit. This means that while there may be less money involved overall, your settlement may still cover all related medical bills and any applicable lost wages.
Perhaps most significant of all is that both parties are able to retain their dignity throughout the process. Since no public disclosure or appeals are necessary for resolution, the whole ordeal remains private with only those directly involved knowing about it. This makes for an amicable ending to an otherwise contentious dispute and allows everyone involved to put this difficult situation behind them once and for all!
What Should Be Aware of in Creating a Clincher Agreement?
There are a few things of which you should be aware if you are in the process of formulating a clincher agreement with your employer.
Whether or not it seems fair, it’s a fact that many employers seek to obtain a resignation and release of all employment claims at the same time they get a clincher of the workers’ compensation claim. Why? A previously injured employee is a future liability. In their view, and it makes good economic sense to secure an employment resignation and release at the end of the workers’ compensation claim. To ensure things go smoothly, there are a few things to consider before you discuss a resignation and release.
- A resignation and release of employment and employment-related claims should be discussed and negotiated with an employment lawyer to avoid any mistakes that could ultimately cost you.
- The money paid for an employment resignation and release must be separate from the money paid for the workers’ compensation clincher. Make sure the check for the employment resignation and release comes directly from your employer, not the insurance company. Keep in mind that payment from a resignation and release will most likely be considered taxable income. Again, have an employment lawyer negotiate this issue to be certain expectations of both parties are clear.
- Consider mediation, which creates an excellent opportunity to discuss both clinchers and resignation and releases. Typically a mediation make sure that both parties have useful and productive discussions with one another.
It is important to know that you cannot be forced to resign from your employment. If you are not willing to voluntarily and willfully resign your position, make that clear to your employer.
Work with a Lawyer Today!
If you are considering entering into a clincher agreement, it is important to seek the advice of an experienced workers’ compensation lawyer. A lawyer can help to ensure that your rights are fully protected, and that all paperwork is properly completed and filed. They will also be able to provide sound legal advice so that you make the most informed decision possible.
At Oxner + Permar Law, our attorneys are highly experienced in workers’ compensation law and can provide you with the legal guidance and representation needed to ensure that your rights are protected throughout this process. Contact us today to learn more about how we can help you with your clincher agreement!
