Settling Your New York Workers' Compensation Case

Understanding Workers’ Compensation Settlements in New York

New York Workers Compensation provides compensation for lost wages and medical care resulting from a job-related injury or illness. Most claims culminate in a settlement, where the injured worker and the insurance company agree on a lump sum or a schedule of payments. In this blog post, I'll break down the different types of settlements available, the step-by-step process for settling your claim, and provide tips to maximize your settlement.

Types of Workers’ Comp Settlements

In New York, there are two main types of workers’ compensation settlements: stipulated agreements and Section 32 waiver agreements. Both of these settlements are tax-free.

Stipulated Agreements

A stipulated agreement is essentially an agreement between you and the insurance company about the extent of your disability and the amount of money you will receive. This type of settlement can be used for both Schedule Loss of Use (SLU) cases and permanent partial disability cases, but it is more commonly used for settling SLU of an injured extremity.

One of the benefits of stipulated agreements is that they can be reopened if your condition worsens. In such cases, you can request the New York Workers’ Compensation Board to reopen your claim for additional treatment and reevaluation of your permanent disability or impairment.

Section 32 Waiver Agreements

A Section 32 waiver agreement, on the other hand, ends your right to ongoing benefits in exchange for a lump sum payment. By entering this agreement, you "waive" your right to request additional benefits in the future. This settlement usually results in a full and final closure of the claim, meaning you will not receive any further monetary awards or medical benefits.

However, in some cases, you might enter into an "indemnity only Section 32 agreement," where the settlement covers only the monetary part of the claim, and the insurance company remains liable for ongoing medical care related to the injury.

Once a full and final Section 32 agreement is settled, it cannot be reopened, even if your condition worsens or you need additional medical treatment.

How Does the Settlement Process Work?

The settlement process involves negotiating with the insurance company. Here’s a step-by-step breakdown:

1. Initiation: You or your lawyer can approach the insurance company, or vice versa. The insurance company might initially offer a low settlement.
2. Negotiation: Don't be discouraged by a low initial offer. Your lawyer is obligated to present any offer to you, but negotiations will continue until a fair agreement is reached.
3. Drafting the Agreement: Once terms are agreed upon, either the insurance company or your lawyer will draft the settlement agreement.
4. Review and Hearing: The agreement is submitted to the New York State Workers' Compensation Board, which will schedule a settlement hearing with a law judge.
5. Cooling-Off Period: After approval, there is a 10-day cooling-off period during which either party can back out of the settlement by providing written notice.
6. Final Approval and Payment: Once the cooling-off period passes without withdrawal, the Workers’ Compensation Board files a Section 32 notice of approval. The insurance company then has ten days to pay the award.

How to Maximize Your Settlement

Maximizing your workers' compensation settlement involves several strategic steps:

1. File Early: Submit your claim as soon as possible to avoid delays and potential complications.
2. Keep Records: Meticulously document all out-of-pocket medical and travel expenses related to your claim, as you are entitled to reimbursement.
3. Avoid Recorded Statements: Do not provide recorded statements to the insurance company without consulting your lawyer, as these can be used to devalue your claim.
4. Be Transparent with Doctors: Communicate openly with your treating physicians and the insurance company’s consulting doctors about all injuries, including those that may have improved or new pain that develops over time.
5. Hire a Lawyer: Having an experienced workers' comp lawyer can significantly increase your settlement amount. They know how to effectively negotiate with insurance companies and can advocate on your behalf.

If you or a loved one has been injured on the job in New York, a free consultation can be the first step towards securing the settlement you deserve. Call me, Rex Zachofsky, at 212-406-8989 today.

For more detailed information about stipulated and Section 32 waiver agreements, visit the New York Workers’ Compensation Board's official page.

Conclusion

Understanding the intricacies of workers' compensation settlements in New York can make a significant difference in the outcome of your claim. By knowing the types of settlements available, the steps in the settlement process, and strategies to maximize your compensation, you can navigate your claim with confidence and secure the benefits you deserve. If you need professional assistance, don't hesitate to reach out for a free consultation.

Stay informed and protected, and remember, having the right legal support can transform your workers’ compensation experience.