There is virtually no established timeline for settling a workers’ compensation case. Settlements are negotiated between the insurance company and the injured worker whenever both parties can agree to settle. To complicate matters, there’s no set timeline for resolving a workers’ compensation claim. A settlement can be offered at any stage of the process, but it usually depends on factors like the severity of the injury, the stage of medical treatment, and whether both parties are open to negotiation. Understanding the circumstances that tend to lead to settlement discussions can help injured workers better anticipate what to expect and when.
What Is Section 32 in New York Workers’ Compensation?
In New York, Section 32 governs all workers’ compensation settlements. It included a provision that states that a settlement must be offered within two years of the injury or six months after the claimant is determined to have a permanent disability. However, nothing in the law requires that this settlement offer has to be fair or reasonable. Technically, the settlement doesn’t even need a set dollar amount assigned to it. In practical terms, there is no way to force an insurance carrier to even discuss a settlement.
When Will Workers’ Compensation Offer a Settlement?
There are a few situations where the possibility of a settlement may arise.
Early in the Case
Sometimes, an insurance carrier anxious about the potential future costs of a case might offer the injured worker a quick settlement to close the case. These offers rarely cover the real value of the case and should be looked at with suspicion.
Around the Time of Permanent Disability Classification
These situations are more common. At this point in a case, often one year or more from the date of injury, injured workers may be wrapping up treatment or returning to work. Carriers will look to close cases in times where injured workers, likely frustrated with workers’ compensation and wanting to move on with their lives, might accept less to settle than they otherwise would obtain.
What Should a Workers’ Compensation Settlement Include?
A good settlement takes into account the injured workers’ likely future medical treatment (if that is being settled) and payments from the carrier. The injured worker is giving up their right to receive those benefits in exchange for a lump sum of money. There are complex calculations involved in determining these amounts, especially if the injured worker is receiving Social Security, Medicare, or other benefits. A settlement is a negotiation, so the insurance carrier always wants to settle for as little as possible.
Why Do You Need a Workers’ Compensation Attorney?
Insurance companies will always retain an attorney to handle the process of settling a workers’ compensation claim. The process involves determining and negotiating value, drafting lengthy paperwork, and seeking approval from a judge at the Workers’ Compensation Board. By working with an attorney, you can make sure you are fairly compensated for the rights you are waiving when you settle.
The attorneys at Lewis & Lewis, P.C. have negotiated thousands of settlements on behalf of our clients. We offer free consultation to discuss settlement or any other issue on your workers’ compensation, personal injury, or Social Security case.
