GQ Corner
Q: We have a subrogation lien on our workers’ compensation claim. Does the statute mandate that we automatically have to reduce our lien 1/3 for the claimant’s attorney’s fees even though we didn’t hire him? I thought it was customary and we can reduce the lien by 1/3 but, I thought the law states we get first monies up to the full amount of the lien.
A: This is controlled by Sections 417.001, 417.002 and 417.003. The workers comp carrier does get the first monies; however, the attorney pursuing the third party suit is entitled up to 33 % of the recovery. If the carrier has its own attorney, then the two attorneys would split the 33 %. The amount of the split between the two would be up to the court.
Q: What is the maximum amount or maximum percentage we can take out of the injured workers’ TIBs check for a child support lien? The claimant is at the max rate of $861, but his attorney is receiving 25% of that. I have now received a lien from the state of Idaho for back child support and they want $346.15 a week, which would only leave him $299.60 a week. Is this okay or am I limited to 25%?
A: Here are the general rules for allocating child support:
1) First, pay usual attorneys fee lien. They take precedence.
2) Then pay child support lien out of any income benefits, including TIBs.
3) Pay up to 50% of weekly benefits to fund current child support obligation until further ordered.
4) For arrearage (back child support remaining unpaid) specifically identified in the order, pay up to 100% of benefits until the amount has been fully reimbursed but no more per week than order provides per week if a maximum amount per week is specified in the order. After accrued arrearage is fully paid, contact the Child Support Division at the number indicated on the notice to determine if a further balance has accrued. If not, resume full payments to worker or resume withholding only for current obligation per terms of the order.
5) Order of withholding should direct whether lien is for current or arrearage and if does not, we should assume that we pay no more than 50% of weekly benefit per week.
6) If we have a D&O from DWC, and if we are ordered to pay a lien, and if it does not specify whether it is arrearage or current, then we should assume current, and should withhold 50% of weekly benefits times the number of weeks payable under the D&O.
7) If there are multiple current child support obligations you will allocate equally between each up to the maximum 50%.
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