How Do Workers’ Comp Settlements Work in New York?
How Do Workers’ Comp Settlements Work in New York?
Attorney Reviewed | 7 Min Read
Content reviewed by the attorneys at Aronova & Associates · Last updated November 6, 2026 · Editorial Policy
A settlement can turn a long Workers’ Compensation case into a single payment. In New York, a lump-sum Workers’ Comp settlement is called a Section 32 waiver agreement, or a Section 32 settlement. It can resolve your weekly benefits, your future medical care or both, but it becomes binding only after a Workers’ Compensation judge or the Board approves it, and once it is approved, it generally cannot be reopened. Settlement is voluntary for both sides, and a Section 32 agreement is not the only way a claim can be resolved.
At Aronova & Associates, our New York Workers’ Compensation lawyers evaluate settlement offers, negotiate with insurance companies and represent injured workers at settlement hearings across New York City and Long Island. Every case begins with a free consultation.
Key Facts: Workers’ Comp Settlements in New York
| Item | What the law says |
|---|---|
| What a settlement is | A Section 32 waiver agreement under Workers’ Compensation Law § 32 |
| What can be settled | Weekly (indemnity) benefits, medical benefits, or both |
| Is it required? | No. Settlement is voluntary for both sides |
| Other ways to resolve a claim | A stipulation on a specific issue, a schedule loss of use award or a classification award |
| Who approves it | A Workers’ Compensation Law Judge or the Board |
| Waiting period | No approval until 10 days after the agreement is submitted; during that time, either side can ask the Board to disapprove it |
| After approval | Generally final; it can be changed only if all parties agree and the Board approves |
| Payment | Due within 10 days after the approval decision is filed |
| Attorney fee | 15% of the benefits paid under the agreement, not counting money set aside for future medical care, approved by the Board |
What Is a Section 32 Settlement?
A Section 32 agreement is a contract between you and the insurance company, approved by the Workers’ Compensation Board, that trades some or all of your future benefits for a set amount of money. The agreement must state how much is for weekly benefits, how much is for medical care and how much is the attorney’s fee.
Only the claims named in the agreement are settled. If you have more than one Workers’ Compensation case, any case not listed stays open. Every term must appear in the agreement itself, so there can be no side deals.
When Can You Settle a Workers’ Comp Case?
Settlement is voluntary. Either side can raise it, but neither you nor the insurance company can be required to settle, and a Section 32 agreement takes effect only after both sides sign it and the Board approves it. Because an approved settlement generally cannot be reopened, it is important to know whether your injury is permanent, and how it affects your ability to work, before you decide.
See how permanent injuries to the arms, legs, hands and feet are valued in our guide to schedule loss of use awards.
What Can Be Settled: Weekly Benefits, Medical Care or Both
- Weekly benefits only: You receive a lump sum in place of future weekly payments, and your medical care for the injury can remain open. An agreement that settles weekly benefits only usually does not require a hearing.
- Weekly benefits and medical care: You give up future medical coverage for the injury in exchange for money. The Board closely reviews any agreement that settles both but sets aside less than 10% of the total for future medical care, unless your condition is stable and no future treatment is expected.
- Medicare: If Medicare is involved, the parties decide whether to include a Medicare Set-Aside for future medical expenses. If Medicare has approved the amount, its approval letter is submitted to the Board with the agreement.
Received a Settlement Offer? We Are Here to Help.
Our New York Workers’ Compensation lawyers can tell you what your claim is worth before you sign. Call (516) 640-3900 for a free consultation.
What Happens at a Settlement Hearing?
The Board schedules a hearing for most settlements. The only exceptions are agreements that settle weekly benefits only, and cases in which every party asks for a review on paper instead. A review on paper is not available to injured workers who do not have a lawyer, or to minors, so those agreements always go to a hearing.
At the hearing, the judge reviews the agreement and may ask you questions about it to confirm that you understand what you are giving up. The Board must approve the agreement unless it finds the agreement unfair, unconscionable, improper as a matter of law, or the result of an intentional misrepresentation of a material fact.
Once Approved, a Settlement Is Final
- No appeal of an approval: An approved agreement is not subject to Board review. A decision disapproving an agreement can be reviewed.
- Changes require everyone’s consent: An agreement can be modified only if all parties agree and the Board approves the change.
- Prompt payment: The insurance company must pay within 10 days after the approval decision is filed, or it faces a late payment penalty.
- Child support: If you owe child support arrears, the agreement generally must provide for paying them in full from the settlement.
Other Ways a Workers’ Comp Case Can Be Resolved
A Section 32 agreement is not the only way to resolve a claim or a dispute within it. Depending on your injury and your employer, a case may also be resolved through:
- A stipulation: You and the insurance company agree on a specific issue, such as the percentage of a schedule loss of use, and the agreement is stated on the record at a hearing or submitted in writing. A Workers’ Compensation Law Judge must approve it, and once approved, it is binding. A stipulation resolves only the issues agreed on, rather than settling the whole claim.
- A schedule loss of use (SLU) award: A permanent injury to an arm, leg, hand, foot, finger, toe, eyesight or hearing is paid as a set award, which you can receive as a lump sum. See our guide to schedule loss of use awards.
- A classification award: A permanent injury to the back, neck or another body part that is not on the schedule is paid weekly, for a maximum number of weeks based on your loss of wage-earning capacity.
Some employers, including the City of New York, generally do not resolve claims through Section 32 agreements. If you work for the City, your case is more likely to be resolved through one of these other routes.
How a Settlement Can Affect Social Security Disability
If you also receive Social Security Disability (SSDI), a lump-sum settlement counts toward the limit on combined benefits. Social Security treats the settlement as a substitute for weekly payments and spreads it over time at a monthly rate, and it looks first to the rate written into the settlement itself. How the agreement is worded can therefore affect how much of your SSDI is reduced. Our Social Security Disability lawyers also handle SSDI claims for injured workers.
How Our Lawyers Evaluate a Settlement Offer
Because an approved settlement is final, the offer has to be measured against everything you would give up. Before you sign, we review:
- What your claim is worth over time: We weigh your weekly rate, your classification and the weeks remaining on any cap against the lump sum offered. See how your rate is set in our guide to the maximum Workers’ Comp benefit.
- Your future medical needs: Before you give up medical coverage, we look at the treatment your doctors expect you to need and how the settlement money is allocated.
- Social Security and Medicare: We review the agreement’s wording with any SSDI offset and Medicare considerations in mind.
- Exactly what is being closed: We confirm which claims, benefits and dates the agreement covers, so nothing is settled by accident.
Why Injured Workers Choose Aronova & Associates
Many injured workers contact us when an offer arrives and they are not sure whether it is fair. We explain what the offer covers, what your claim is likely worth and what you would be giving up, in plain terms, so you can decide with confidence.
- A dedicated Workers’ Compensation team: Our lawyers represent injured New Yorkers before the Workers’ Compensation Board every day, including at settlement hearings.
- Help in your language: Our team speaks 8+ languages, so you can review your agreement in the language you are most comfortable with.
- Every benefit, coordinated: We also handle Social Security Disability, so we can structure a settlement with your SSDI in mind.
No Upfront Cost to Start Your Case
You pay nothing upfront. For a settlement, the attorney’s fee is 15% of the benefits paid under the agreement, not counting money set aside for future medical care, and it must be approved by the Board.
Frequently Asked Questions
Do I have to accept a Workers’ Comp settlement in New York?
No. Settlement is voluntary, and a Section 32 agreement takes effect only if you agree to it and the Board approves it.
Are there other ways to resolve a Workers’ Comp case besides Section 32?
Yes. A specific issue, such as the percentage of a schedule loss of use, can be resolved by a stipulation that a Workers’ Compensation Law Judge approves. Permanent injuries are also resolved through schedule loss of use awards or classification awards. Some employers, including the City of New York, generally do not enter into Section 32 agreements.
Can I reopen my case after a Section 32 settlement?
Generally, no. Once approved, a settlement is final and is not subject to Board review. It can be changed only if all parties agree and the Board approves the change.
Will I have to go to a settlement hearing?
Usually, yes. A hearing is held unless the agreement settles weekly benefits only, or all parties ask for a review on paper. Injured workers without a lawyer always have a hearing.
How long does it take to get paid after a settlement is approved?
The insurance company must pay within 10 days after the Board files its approval decision, or it faces a late payment penalty.
How much does a lawyer charge for a Workers’ Comp settlement?
The fee is 15% of the benefits paid under the agreement, not counting money set aside for future medical care, and it must be approved by the Board. There is no upfront cost.
Does a Workers’ Comp settlement affect Social Security Disability?
It can. Social Security treats a lump-sum settlement as a substitute for weekly payments and spreads it over time, so it counts toward the limit on combined benefits.
Sources
Talk With a New York Workers’ Compensation Lawyer Before You Settle
A settlement is one of the most important decisions in a Workers’ Compensation case, and once it is approved, it generally cannot be undone. Our New York Workers’ Compensation lawyers represent injured workers across New York City and Long Island, and we will review any offer with you before you sign.
Call (516) 640-3900 or contact our team for a free consultation.
Attorney Advertising. This article provides general information about the law and is not legal advice about your situation. Reading it does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.
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