Deciding whether to accept a Section 32 settlement in a NY workers’ compensation claim can have a significant impact on your physical and financial well-being. At Nappa, Monterosso & Poznansky, LLP, our workers’ compensation lawyers in Staten Island understand the pressure injured workers face when searching for a secure path forward. Although a Section 32 settlement is often an effective option, this agreement is usually final so it’s vital to consult a lawyer who helps you understand both its benefits and drawbacks.
Key Takeaways:
- A Section 32 settlement typically closes your workers’ compensation claim permanently in exchange for a lump sum or monthly payments.
- If you receive Social Security Disability, accepting a workers’ compensation settlement in New York may reduce your monthly SSDI checks if the agreement isn’t structured correctly.
- Every settlement must be reviewed and approved by a Workers’ Compensation Board judge (WCBJ) to ensure it is fair to you.
- Our Staten Island workers’ compensation lawyers have more than 30 years of experience and a proven track record of success helping clients get the benefits they deserve.
What is a Section 32 Settlement?
Also known as a Section 32 Waiver Agreement, a Section 32 settlement is a contract between you and your employer’s workers’ compensation insurance carrier. In a typical settlement, you receive a lump sum or structured payments in exchange for closing your claim and waiving your right to future medical coverage and/or wage replacement benefits.
Settling Specific Sections of Your Claim
While insurance carriers often push for full and final closure when offering a settlement, you are not always required to close out every part of your claim at once. This flexibility is vital for workers who need immediate financial support but have long-term medical needs.
- Indemnity benefits (wage replacement) —This section covers your lost wages. You can choose to settle this portion for a lump sum of cash or annuity while keeping your medical benefits open. This allows you to receive the funds you need to protect your financial stability, but the insurance company remains responsible for your future medical care like doctors’ appointments, physical therapy, surgeries, and prescriptions.
- Medical benefits —This section covers all healthcare costs related to your workplace injury. Settling this part means you take a lump sum today in exchange for paying all your own future medical bills related to your workplace injury.
Although the most common type of agreement settles both the cash and medical sections simultaneously, it’s important to have an experienced workers’ compensation lawyer evaluate your case to determine which option will best meet your needs.
Benefits and Drawbacks of Accepting a Section 32 Settlement in NY
Each case is unique. While a settlement is the right choice for some injured workers, others benefit more from keeping their weekly wage replacement and medical coverage active.
Pros
- You receive a lump sum of money upfront, providing immediate financial relief.
- Alternatively, you may receive all or a portion of your settlement in payments over time, which can help to ensure you have funds future medical expenses.
- You gain more control over your health, as you no longer need the insurance company’s approval for medical treatment.
- You don’t have to deal with the stress of ongoing appeals and hassles like independent medical examinations (IMEs}.
Cons
- If you accept a settlement that completely closes out your claim, you are responsible for all future medical bills, prescriptions, and other care related to your injury.
- If your condition gets worse years later, you cannot reopen the claim.
- Without proper legal phrasing, a Section 32 settlement can significantly lower your Social Security Disability (SSDI) payments.
How A Section 32 Settlement Can Impact SSDI Payments
In some cases, an injured worker may qualify for both SSDI and a workers’ compensation settlement in New York. However, under Social Security Administration (SSA) rules, your combined benefits cannot exceed a certain percentage of your prior earnings. If you receive a large settlement, the Social Security Administration may offset or reduce your monthly SSDI payment to stay under that limit.
How a Workers’ Compensation Attorney Can Help Maximize Your Benefits
There are several a ways our attorneys help maximize your SSDI and workers’ compensation benefits. One way is by including specific language in your settlement that spreads your lump sum out in small monthly payments over your lifetime. This often eliminates the SSDI offset so you keep more money in your pocket.
Proper Timing
Timing is also a critical factor in these cases, as the date you file for SSDI and the date you settle your workers’ compensation claim can change the total amount you receive. Our workers compensation lawyers in Staten Island can help you navigate both confusing systems and ensure they work to your advantage.
Securing a Fair Settlement
An insurance company’s number one priority is protecting their bottom line. Our team has decades of experience accurately valuing settlements that reflect the true long-term value of workers’ compensation claims. We don’t just look at what you need today—our workers’ compensation lawyers consider what type of medical care and financial support you’ll require 10 or 20 years from now. We successfully take on powerful insurance companies and negotiate aggressively on your behalf to ensure your current and future well-being are protected.
Working Light Duty or Part-Time
If you’re currently working light duty or considering a part-time return to work, it is essential to understand how your earnings could impact your final settlement. We help you navigate these transitions so your return to the workforce doesn’t jeopardize your compensation.
How Long Does a Section 32 Settlement Take?
While every case is different, the process usually moves through three stages: negotiation, hearing, and payment. Once your workers’ compensation attorney reaches an agreement with the insurer, a hearing is typically scheduled within a few weeks and the Section 32 settlement is approved or rejected by a Workers’ Compensation judge. However, there is a 10-day waiting period after the hearing that allows you to change your mind. Once this period is over, the insurance company must pay you within 10 days. Generally, the process takes about two to three months from the time negotiations end.
It’s important to keep in mind that while the settlement phase moves quickly, negotiations for a Section 32 Waiver agreement often follow a long appeals process. This means the total time from your initial injury to your final settlement payment can be significantly longer.
Why Choose Our Staten Island Workers’ Compensation Attorneys?
As the largest workers’ compensation firm in Staten Island, Nappa, Monterosso & Poznansky, LLP, takes pride in being a local resource for workers in the greater New York City area. We’re invested in our communities and understand the physical and emotional toll a workplace accident takes on families.
Our lawyers provide direct, personal service; you won’t be passed off to a different person every time you call. Partner and attorney Rolando Cubela is fluent in Spanish and provides quality representation to our Spanish-speaking clients. Our team takes cases on contingency, which means you won’t incur any upfront costs and we only get paid if we win your case.
Find a Workers’ Compensation Lawyer Near You in Staten Island
If you’re considering a Section 32 settlement in NY, Nappa, Monterosso & Poznansky, LLP can protect your rights and help you understand your options. Contact us or call 718-273-9000 today to schedule a free consultation with a worker’s comp lawyer near you in Staten Island. We serve clients throughout the greater New York City area.
