What are the “penalties” that are imposed on the employee and the third party if they settle the suit (in which the employer/insurer has filed an intervention) without the employers approval?
An employee who settles his claim against a third party without the approval of the employer/insurer forfeits his right to future workers’ compensation benefits (indemnity and medical). This penalty applies against the employee even if the employer has not filed an intervention. The third party who settles the suit will be required to pay the entire lien without need of the employer to establish “fault”. This penalty only applies against the third party if the employer has filed an intervention.
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