So how do you know what the value of your case is? What’s the step-by-step process for filing a Section 32 agreement? And how do you make sure you don’t get taken advantage of by the insurance company along the way? Strap yourself in, because we’re answering all of these questions right now!
If you get hurt on the job, your employer’s workers’ comp insurance covers lost wages, medical treatment, and permanent disability. But in some cases, it might make more sense to settle with the insurance company instead of continuing to get those ongoing benefits.
A Section 32 agreement is a way to close out your claim completely—you give up your right to future medical and cash benefits in exchange for a one-time, tax-free lump sum from the insurance company. It’s officially called a “Section 32 Waiver Agreement” because you’re waiving your right to ask for more money or medical coverage down the road. In some cases, there’s an “indemnity only” Section 32, which settles just the money side of things while keeping medical benefits open, but most of the time, Section 32 agreements wrap up everything for good.
One thing to keep in mind—once you agree to a Section 32 settlement, that’s it. The case is closed, and you can’t reopen it later unless the insurance company allows it, which almost never happens. If you get a new injury at work—even in the same spot—you can always file a new claim. But if years from now you suddenly need surgery for the old injury, you’re on your own for the medical bills.
There are a bunch of reasons why you might want to settle your case with a Section 32 agreement:
From what I’ve seen, Section 32 settlements are most common when an injured worker has been classified with a permanent partial disability and is supposed to receive weekly payments over a set period—what we call the “cap.” The lump sum payout in a settlement is usually a percentage of that total cap, but the exact amount depends on the details of your case.
The Section 32 settlement process kicks off when either you or the insurance company brings it up. This can happen right after you file your claim, months into receiving benefits, or sometimes not at all.
Every case is different, and its value depends on the details. If you have a permanent partial disability that affects your ability to earn wages, you can estimate your benefits using the non-schedule chart on the New York Workers' Compensation Board website.
Here’s how it works: Let’s say a judge decides you have a 75% loss of wage-earning capacity. That means you’d be entitled to 75% of two-thirds of your average weekly wage, multiplied by the maximum number of weeks listed on the non-schedule chart. But there’s more to consider—future medical costs also play a role, and if you’re on (or eligible for) Medicare, you might need a Medicare Set Aside Account to cover those expenses.
Once you figure out the total value of your permanent partial disability and future medical costs, your Section 32 settlement will usually land somewhere between 30% and 80% of that cap amount. Most settlements for permanent partial disability fall within that range.
If your case involves a schedule loss of use (SLU) award—which compensates you for losing use of certain body parts—there’s a separate chart on the Workers' Compensation Board website that tells you how many weeks of benefits each body part is worth.
Many people think that the longer they wait, the more their settlement will be worth. But in many cases, the opposite is true. If you have a 75% permanent disability and are entitled to 400 weeks of benefits, every week that passes reduces the overall value of your settlement.
Having an attorney is crucial because they know when to strike while the iron is hot, maximizing the value of your case. They understand the nuances of the settlement process and can help ensure you get the compensation you deserve.
If you or a loved one have been injured on the job in New York and would like to set up a free consultation with an experienced lawyer who will fight for what you deserve, give me a call at 212-406-8989.
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