In a third-party case with the described figures, what is the net recovery to the injured worker after attorney fees, costs, and WC lien?

• A. $10,000
• B. $56,000
• C. $20,000
• D. $60,000

Answer: (C)

The main idea is that the amount the injured worker finally receives from a third-party recovery is what’s left after paying the WC lien, attorney fees, and costs from that third-party settlement.

Using the described figures: start with the third-party recovery of 60,000. Pay back the workers’ compensation lien of 25,000 to reimburse benefits already paid. Then subtract the attorney fees, which are typically a percentage of the third-party recovery (here 15% of 60,000, i.e., 9,000). Finally subtract the litigation costs, 6,000. So the calculation is:

60,000 - 25,000 - 9,000 - 6,000 = 20,000.

Thus the net recovery to the injured worker, after attorney fees, costs, and the WC lien, is 20,000.