My Employer Went Bankrupt – What Happens to My Workers’ Compensation Benefits?

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  2. My Employer Went Bankrupt – What Happens to My Workers’ Compensation Benefits?
My Employer Went Bankrupt – What Happens to My Workers’ Compensation Benefits?

Job losses can occur for different reasons in a troubled economy, including bankruptcy. If your Oklahoma employer goes bankrupt, it should not have significant implications for your Workers’ Compensation benefits. Workers’ Compensation is designed to provide financial assistance to employees who are injured or become ill due to their work.

However, when a company goes bankrupt, it can lead to uncertainty and concern for employees who are relying on these benefits. The Armstrong Law Firm, PLC, in Tulsa, recommends that you consult with an experienced Oklahoma Workers’ Compensation attorney right away to protect your rights.

How Workers’ Compensation Works

One of the main concerns for employees is whether they will still receive their Workers’ Compensation benefits if their employer goes bankrupt. The answer to this question is “Yes,” but it may be impacted by the specific circumstances of the bankruptcy and the laws in the relevant jurisdiction.

First and foremost, it’s important to understand that an insurance company provides Workers’ Compensation benefits; they are not an employer’s obligation. The state of Oklahoma requires most employers to carry Workers’ Compensation insurance, which was developed to protect the interests of both employers and employees.

Oklahoma Workers’ Compensation provides several primary benefits for employees who become ill or injured at work. They include:

  • Medical benefits to cover the cost of all related treatment
  • Disability benefits that cover a portion of your lost wages
  • Vocational rehabilitation to help you with job placement
  • Death benefits for a surviving spouse and/or children of a worker who dies from a work-related injury or illness

Even if your employer owes Workers’ Compensation insurance dues at the time of bankruptcy, this debt may be treated as a priority that must be paid before other debts. However, this will not impact your benefits. The insurance company still covers an approved claim, even if you lose your job.

Possible Setbacks from an Employer’s Bankruptcy

When a Workers’ Compensation claim is recently submitted or still under investigation, there may be obstacles to overcome. An Oklahoma Workers’ Compensation lawyer can provide valuable assistance in advancing your claim in such situations. Business closures can lead to several potential challenges, including:

  • Loss or destruction of important work and injury records
  • Difficulties in contacting key witnesses or employee representatives
  • Loss or destruction of crucial evidence

Proving your ability to return to work can also become more complex. Delays in gathering essential facts and information about your claim can result in the insurance company postponing benefits, leaving you needing critical replacement wages and medical care payments. Any confusion surrounding the circumstances of your injury could even lead to the insurance company denying your claim.

In addition, questions about your claim approval or denial may impact your medical care. Doubts about payment arrangements may cause complications with your provider and require making alternate financial arrangements.

Get Seasoned Workers’ Compensation Representation

In some cases, uncommon circumstances can affect your Workers’ Compensation benefits. That’s why it’s crucial to have an experienced Oklahoma Workers’ Compensation attorney on your side. They can help gather evidence, locate witnesses, and obtain records to support your claim, ensuring you receive the benefits you deserve.

Employees should understand their rights and consult with an attorney from The Armstrong Law Firm, PLC, specializing in Workers’ Compensation law. Our experienced attorneys can provide valuable guidance and representation to help employees navigate the complex legal and financial issues that can arise in these situations.

Ultimately, the impact of an employer’s bankruptcy on Workers’ Compensation benefits can be complex and challenging. Employees should proactively seek information and assistance to continue receiving the necessary benefits. Contact us today for the help and advice you need.

 

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