Settlements of your workers' compensation claim are permitted under the Workers' Compensation Law. These settlements are commonly known as "§32" settlements as the settlement process is governed by §32 of the Workers' Compensation Law. That section was amended in 1996 to allow much more flexibilty in settling workers' compensation claims.
Prior to that amendment, settlements were covered under §15 of the Workers' Compensation Law. Those settlements were called "lump sum" settlements and generally were much more limited in scope. The amount of the settlement was quite rigid so overall the amendment of §32 has helped to benefit injured workers.
However, settlements under §32 of the Workers' Compensation Law are very different than a settlement of a personal injury lawsuit. Most significantly, the Workers' Compensationn Law does not provide compensation for "pain and suffering". The amount of a §32 settlement is generally dependent upon the value of the claim which is comprised of weekly benefits for lost wages, compensation for a permanent injury, and the value of future medical expenses. The settlement is negotiated between the claimant's attorney and the insurance carrier. You are not entitled to a §32 settlement as a matter of right. The settlement must be agreed to by all of the parties and approved by the Workers' Compensation Board.
If an individual is receiving Medicare or is eligible for Medicare then the Social Security Administration's interest must be taken into account in settling the case. That portion of the settlement which represents compensation for future medical benefits is therefore commonly referred to as a Medicare set-aside or MSA.
The monetary range of a §32 settlement is quite broad and every case is unique. In some instances it is possible to settle the lost wage portion of the case and leave open the injured workers entitlement to future medical expenses. This is commonly referred to as an "indemnity only" settlement.
The biggest factors in determining a fair and reasonable amount of the settlement are the injured workers age, his or her earnings, the degree of permanent physical impairment and the need for ongoing medical care. Our attorneys are experts at securing for our clients the maximum settlement possible under the law. At all times our firm endeavors to secure the settlement that is most beneficial to our client.