What Happens at Workers’ Comp Mediation in Pennsylvania?

If you are unfamiliar with the process of a Workers’ Compensation claim, there may be different parts of the case, like hearings and mediation, that sound somewhat similar but actually have quite different rules, requirements, and outcomes.

Mediation is a non-binding process where both sides of a case sit down with a “mediator” and try to work out an agreement that satisfies both sides and allows them to settle.  Sometimes, mediation is mandatory, but it may be skipped in cases where the judge thinks it would be useless.  Either party can walk away from mediation if it is not getting the results they want, and the final determinations made at mediation are non-binding unless the parties sign an official settlement agreement at the end of mediation.  The goal is to try to speed up cases and resolve them without the need for hearings, but the final results will need to be affirmed by a judge in most cases anyway.

For help with your Workers’ Comp claim, call our Certified Pennsylvania Workers’ Compensation Lawyers at Cardamone Law today at (267) 651-7945.

What is Mediation in a Workers’ Comp Claim in Pennsylvania?

In a Workers’ Compensation claim, the insurance carrier first hears the claim and determines whether or not they will agree to pay it.  Often, the answer is no, and injured workers need to file petitions before a Workers’ Comp Judge to get their case heard.  While we could see every case go to a hearing, it would put a lot more work on judges and require additional time and resources from the state to hear every case that way.  In an attempt to speed up cases and get workers and insurance carriers to settle faster, mediation is often required by the Workers’ Comp Judge.

Alternative Dispute Resolution

Mediation is a form of “alternative dispute resolution,” which means that the parties work out the case through a guided process instead of having the judge make the decision for them.  With mediation, both parties sit down with a neutral mediator (often a Workers’ Comp Judge or someone your judge appoints) to try to work out an agreement.  If they want to walk away, nothing requires them to stay, but the process is a bit more guided and intentional than simply setting up conferences or meetings to negotiate a settlement without a mediator.  At the end, if they agree, they can sign a settlement; otherwise, they can tell the Judge they could not come to an agreement, and the case can move on to a hearing as usual.

During the entire process, our Pennsylvania Workers’ Comp lawyers can be there to represent you, speak for you in negotiations, and communicate with the judge on your behalf about plans, the status of your case, and mediation procedures.

Mediation vs. Arbitration vs. Workers’ Comp Hearings

Another popular form of alternative dispute resolution is “arbitration,” where both parties attend a hearing put on by a neutral arbitrator or panel of arbitrators instead of taking a case to court before a judge.  Arbitration is not common in Workers’ Compensation, as the typical Workers’ Compensation Judge who hears these cases is already quite similar to an arbitrator.  Workers’ Comp cases go before these administrative law judges instead of being filed in open court, where the case could go before a judge or jury.  This Workers’ Comp hearing process is ultimately very similar to arbitration in the first place.

Arbitration is binding, whereas mediation is non-binding, and the parties can walk away from it unless they sign a binding settlement agreement first.  Workers’ Comp hearings are also binding, though a Workers’ Comp Judge’s decisions can be appealed to the Workers’ Comp Appeals Board and Commonwealth Court in Pennsylvania.

Mediation vs. Settlement

Cases can also be resolved through informal settlement meetings, conversations, and negotiations between the parties.  There is no requirement that a case has to go to mediation for the parties to reach a settlement; they are free to do that on their own.  In any case, however, the judge usually needs to sign off on an agreement to allow the settlement to move forward.

Is Mediation Mandatory in a Workers’ Comp Claim in Pennsylvania?

Mediation can be mandatory, meaning the judge tells the parties to go to mediation, or voluntary, meaning one or both parties requested mediation.  When a judge orders mandatory mediation, the parties have to at least give mediation a good faith effort, and if it doesn’t work out, they can go to a hearing as normal.  There is no requirement that they reach the end of mandatory mediation.  With voluntary mediation, parties often choose to go in hopes that they can avoid needing additional evidence and depositions and simply reach an agreement that satisfies everyone – but one party might be reluctant.

Generally speaking, if one or both parties are reluctant to even sit down to mediation, it would be a sign that reaching an actual settlement would be far off.  In many cases where the parties are strongly at odds or have incredibly different views of what’s going on in the case, judges may even skip mandatory mediation with the recognition that it won’t do the case any good.

Even so, some judges have great faith in their or their mediators’ abilities and might require the parties to at least give mediation a chance.

Are the Results of Mediation Binding in Pennsylvania Workers’ Comp Cases?

Mediation often results in a memorandum of understanding or similar document – a document where the parties record their understanding of what each party’s goals are and what they want to agree to in a settlement.  This is not a binding, enforceable document and merely outlines what they want.  From there, however, the parties can write up and sign a settlement agreement.

A settlement is only binding once both parties sign it, and just because mediation was “successful” does not mean that they then have to sign the agreement afterward.

Generally, a settlement comes in the form of a “compromise and release” agreement, where the injured worker agrees to drop the rest of their claim and accept the amount of money they negotiated with the insurance company.  Before signing anything, it is vital to have your lawyers review the settlement offer and make sure that there is enough money in the offer to cover your lost wages and medical care needs going forward.

Often, judges need to sign off on agreements once the case is before them.

Call Our Workers’ Comp Lawyers in Pennsylvania Today

Call Cardamone Law’s Philadelphia Workers’ Compensation attorneys for a free case review at (267) 651-7945.