Understanding Workers' Compensation Litigation In Wisconsin
November 6th, 2026
3 min. read
By David Collingwood, Director of Workers' Compensation Claims & Safety
Key Takeaways
- Workers’ compensation litigation provides a formal way to resolve disputes about an injury or benefits.
- Prompt reporting, factual documentation, and clear communication can help reduce avoidable disagreements.
- When litigation occurs, employers can support resolution by providing information and coordinating with claims professionals and counsel.
Complete Overview· Workers’ Compensation Litigation Series
Workers’ compensation litigation is the formal process for resolving disputes about a work-related injury or an employee’s entitlement to benefits. For Wisconsin employers, those disputes may involve medical treatment, work restrictions, permanent disability, or return-to-work decisions. Understanding why claims become disputed helps you recognize concerns early and work effectively with your claims professionals.
An otherwise routine claim can become more complicated when a medical provider recommends treatment the insurer disputes or the parties disagree about available work. These disagreements can affect staffing, claim costs, and decisions about the employee’s job. Some can be addressed through clarification and additional information, while others require formal resolution.
Employers can help reduce avoidable disagreements through prompt injury reporting, factual documentation, respectful communication, and coordinated return-to-work planning. This guide explains why workers’ compensation claims become litigated, how employers can help prevent disputes, and what Wisconsin employers should expect when litigation occurs.
Part 1: Why Claims Become Litigated
Litigation can develop when questions remain unresolved as a claim progresses. Attorney involvement alone doesn’t establish fraud or poor claim handling. The underlying disagreement may concern medical evidence, work capacity, or benefits.
Recognizing the specific issue helps you determine what information is needed. Common areas of disagreement include:
- ✓ Whether the injury arose out of employment
- ✓ The need for medical treatment
- ✓ Work restrictions and return-to-work status
- ✓ The extent of permanent disability
- ✓ Benefits owed to the employee
Communication breakdowns can make those disagreements harder to resolve. An employee who doesn’t understand a benefit decision needs a clear explanation, while conflicting medical opinions require evaluation by the appropriate claims and medical professionals. Ask your claims professional what is disputed and how your organization can help clarify the facts.
Issues that lead to litigation can become visible well before a hearing application is filed.
Read more: Why Wisconsin Workers’ Compensation Claims End Up in Litigation
Part 2: Reducing Litigation Risk
Employers influence a claim through the way they respond to an injury and support the employee’s recovery. The first supervisor conversation, the quality of the investigation, and follow-up during an absence all deserve attention. Consistent practices help reduce confusion about what happened and what comes next.
Review how your organization handles these responsibilities. Your team should have clear expectations for:
- ✓ Prompt injury reporting
- ✓ Thorough, factual investigations
- ✓ Consistent documentation
- ✓ Respectful communication
- ✓ Return-to-work planning based on medical restrictions
Supervisors need to know how to receive an injury report and where to direct questions about benefits or treatment. They should document what is known without speculating about an employee’s honesty or medical condition. Make sure employees know whom to contact and when to expect follow-up. When transitional work is available, describe the duties clearly and coordinate their review against documented restrictions.
Your response in the first days after an injury helps establish the information and communication the claim will depend on.
Read more: How Employers Can Reduce Workers’ Compensation Litigation
Part 3: From Dispute to Resolution
Even employers with strong safety and claim management practices can face disputed claims. Once litigation begins, understanding your role helps you support the process. Ask your claims professional and counsel what issues are being evaluated and what they need from your organization.
Depending on the case, the process may involve medical evidence disputes, independent medical examinations, depositions, record gathering, settlement discussions, hearings, or appeals. Attorney involvement doesn’t mean every step will occur. Wisconsin provides options for resolving disputed claims, including informal processes and hearings before an administrative law judge.
Employment decisions need coordination as well. Job accommodations, return-to-work opportunities, performance management, layoffs, and terminations may raise issues alongside the claim. Bring HR, supervisors, claims professionals, and appropriate counsel into those discussions before decisions are made.
Employers support effective claim management by providing reliable information and coordinating employment decisions with the appropriate advisors.
Read more: Wisconsin Workers’ Compensation Litigation: From Dispute to Resolution
What This Means for Your Business
Your reporting, communication, and employment practices influence how a claim develops. Start a conversation with McClone about where those practices could better support injured employees and the people managing your workers’ compensation claims.
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David Collingwood, Director of Workers' Compensation Claims & Safety
In his role at McClone, David is responsible for overseeing two key service areas—workers’ compensation claims advocacy, and safety and loss control. With more than 32 years of leadership experience in carrier work comp claims management, David has worked closely with clients in a variety of industries—construction, manufacturing, healthcare, hospitality, etc.—to help them understand work comp claims processes and mitigate claims. Company safety practices and procedures are key to reducing claims, and David uses his knowledge of state statutes, case law and complex claims to help clients identify risks, increase safety awareness and maximize carrier resources. Prior to joining McClone in 2020, David most recently worked for SECURA Insurance Company. He holds a bachelor’s degree in economics from Illinois State University and served on the board for the Wisconsin Claims Council as well as an insurance liaison on the Wisconsin Workers’ Compensation Advisory Council. David is also actively involved in the Menasha, Wis., community and he currently serves as President of the Congregation for Trinity Lutheran Church.
