Workers’ Compensation in Delaware and Liens by Creditors

The workers’ comp attorneys at Silverman, McDonald & Friedman work to protect the safety of Delaware employees. We serve clients just like you out of our Seaford, Newark, and Wilmington offices.

When you’re injured or get sick on the job, you need your benefits. A workplace accident can require emergency room care, surgery, a hospital stay, treatments with specialists, and follow-ups with a general practitioner. You may need physical therapists and occupational therapists and, depending on the severity or circumstances of the accident, you might also need a psychologist or therapy.

Injured and ill workers need income in order to pay their home bills and support their family while recuperating from injuries or an occupational illness. Workers’ compensation provides this support, and some workers may be entitled to additional benefits so they can learn a new job – allowing them to continue or embark on a new career post-injury.

Who else gets my workers’ comp money?

As a practical matter, physicians are generally reimbursed directly from your workers’ compensation insurance carrier or the state of Delaware. The employer’s insurance carrier also reimburses schools directly. Lastly, attorney fees typically come out of the workers’ comp payment before it’s added to your paycheck.

If you owe money to creditors, the IRS, or for traffic tickets and other court-related fees, they cannot garnish or seize any workers’ compensation payments paid to the doctors, schools, and lawyers – because those payments aren’t designated for the worker. Spouses owed alimony and children owed child support may have a stronger claim the workers’ compensation payments for lost income.

Garnishment and seizure of workers’ compensation income benefits

Whether or not a spouse, a creditor, or a court can garnish or seize the income payments is a question you should review with an experienced Delaware workers’ compensation lawyer.

Consider these questions:

• Can someone garnish debts I already owe?
• Can future obligations be garnished?
• What happens if I make a lump sum settlement?
• Which laws apply? Federal laws or Delaware laws?

Workers’ compensation pays two-thirds of average weekly wages while they are on temporary disability. When the worker reaches maximum medical improvement (meaning additional medical care won’t make the worker healthier), the insurance company makes an evaluation of the worker’s permanent disability. Once a worker reaches maximum medical improvement, they may negotiate a settlement if appropriate.

Generally, in Delaware, only up to 15% of any disposable income (gross income minus mandatory deductions such as FICA) can be garnished. The Delaware courts also state:

“The amount of wages which may be garnished is limited by both Delaware and Federal law and, in some cases none of a defendant’s wages may be garnished because his or her disposable income is below the limit set by law (Civil Form 34). In addition, under Delaware law, there may be only one garnishment of an individual’s wages. Thus, if the defendant’s wages are already being garnished by another creditor, the plaintiff will not be able to garnish the defendant’s wages.”

Generally, workers’ compensation benefits cannot be garnished by creditors. They may be subject to garnishment for child support orders. The Delaware Workers’ Compensation Act provides:

“Attorneys for employees may take such action as is necessary to comply with domestic support garnishment orders, or any other valid court orders, requiring sums be deducted from ongoing benefit checks.”

Bank accounts generally can’t be garnished in Delaware.

At Silverman, McDonald & Friedman, our dedicated Delaware workers’ compensation lawyers fight to obtain all the benefits workers deserve. We understand the practical and legal issues involved when creditors and others make claims against your payments. To speak with an experienced work injury lawyer who will work to protect your interests, please call us at 302.888.2900 or use our contact form. to discuss your claim. We represent Delaware workers from our offices in Newark, Wilmington, and Seaford.