What Is a Section 32 Waiver Agreement and Should You Settle Your Workers’ Comp Case This Way?

What Is a Section 32 Waiver Agreement in NYC Workers’ Compensation?

Quick Answer: A Section 32 Waiver Agreement, also known as a Section 32 Settlement, in New York Workers' Compensation is a negotiated agreement between an injured worker and the insurance company to settle future workers' compensation benefits. This can include indemnity benefits (lost wages) and/or medical benefits, typically in exchange for a lump-sum payment or annuity. This agreement essentially ends the worker's right to future benefits related to that specific claim, but it requires approval from the Workers' Compensation Board.

Here's a breakdown of Section 32 Waiver Agreement:

• What It Is: A Section 32 agreement is a formal, negotiated settlement in a New York workers' compensation case. It allows the injured worker and the insurance carrier to resolve future obligations for both indemnity benefits (payments for lost wages) and/or medical benefits in exchange for a one-time payment or a structured annuity.
• How It Works: The agreement involves a payment from the insurance carrier that concludes their responsibility for any future benefits related to the specific work injury. This effectively closes the claim permanently from the carrier's perspective, providing the injured worker with a defined sum.
• Approval Is Key: The agreement is not legally binding or effective until it has been formally reviewed and approved by the New York State Workers' Compensation Board. The Board ensures the settlement is fair, equitable, and in the best interest of the injured worker.
• Finality: Once approved by the Workers' Compensation Board, a Section 32 settlement is legally binding on all parties involved and generally cannot be appealed. This means the workers' compensation claim is considered permanently closed, and the claim generally cannot be reopened. However, under WCL § 32(d), a Section 32 agreement may be modified at any time if all interested parties agree and the modification is approved by the Board.
• Benefits of a Section 32: This type of settlement allows the injured worker to receive a lump-sum payment, which can help address immediate financial needs, pay off debts, or provide capital for future planning. It also offers the worker control over their medical care and settlement funds.
• Important Note: In some cases, a Section 32 agreement might only settle either the indemnity benefits portion or the medical benefits portion of a claim, leaving the other portion open. This allows for flexibility in reaching a resolution for specific aspects of the claim.

How Does a Section 32 Settlement Differ from Regular Workers' Comp Benefits?

• Payment Type: Regular benefits come in weekly checks. A Section 32 settlement gives you a lump-sum payment all at once.
• Medical Coverage: Regular workers’ comp usually continues to cover your medical treatment. With a Section 32, you often give up the right to future medical care through workers’ comp unless your agreement says otherwise.
• Ongoing Benefits: Regular benefits can continue as long as you qualify. A Section 32 ends your right to future payments related to that claim.
• Case Closure: Section 32 is final. Once approved, you usually can’t reopen your case or ask for more money later.

What Are the Pros and Cons of a Section 32 Waiver Agreement?

• Lump sum payment: You may receive a one-time cash payment to close your case. This can give you financial relief upfront and can be helpful if you have urgent expenses or want to move on from the system.
• Close your case for good: Once approved, a Section 32 agreement ends your claim. You no longer have to deal with hearings, insurance adjusters, or waiting for weekly benefits.
• Flexibility: You can use the money in ways that work best for you. Some people use it to pay debts, go back to school, or switch careers.
• Private settlement: Agreements are reviewed and approved by the New York Workers’ Compensation Board, but the terms are usually not made public. This offers a level of privacy.

• No future benefits: Once you settle, you usually give up the right to any future payments—even if your condition gets worse. For some injuries, this could be risky.
• No more medical coverage: In most cases, you also give up your right to have future medical treatment paid by workers' comp. You may have to use personal health insurance or pay out-of-pocket.
• May affect other benefits: A settlement could impact your eligibility for Social Security Disability or Medicare. It's important to get legal advice about how it will affect those programs.
• Approval needed: The Workers’ Compensation Board must approve the agreement, and the process can take time. There is no guarantee it will be accepted.

Who Can Qualify for a Section 32 Settlement in New York?

• You have an open workers’ compensation claim: This means you filed a claim for a work-related injury or illness, and it has been accepted or is still being reviewed.
• Your injury has stabilized: You may qualify once you’ve reached what doctors call “maximum medical improvement,” which means your condition is unlikely to improve much more with treatment.
• You’re no longer receiving treatment or benefits, or they may stop soon: Section 32 is often considered when ongoing payments or medical care are expected to end or slow down.
• You and the insurance company agree to settle: Both sides — you and the workers’ comp insurance carrier — must agree to the settlement. It is a voluntary agreement.

When Is It a Good Idea to Settle Your Workers’ Comp Case Through Section 32?

• Your medical treatment is finished: If your doctors say you’ve reached “maximum medical improvement” (meaning your condition won’t get better with more care), a settlement may allow you to move on without waiting for more benefit payments.
• You want control over your money: A Section 32 agreement pays you a lump sum. This can give you more freedom to manage your finances or plan for future expenses, especially if your regular workers’ comp checks are not enough to meet your needs.
• You want to avoid further hearings or appeals: Workers’ compensation cases can involve many hearings, decisions, and appeals. If you’re tired of the process or worried it will go on for a long time, settling can help bring closure more quickly.
• Your benefits have been denied or reduced: If the insurance company is disputing your claim, or if your weekly checks have been lowered, a settlement may offer a fair way to resolve the disagreement.
• You are considering returning to work: If you're easing back into the workforce or starting a new job, a Section 32 settlement can resolve your case and eliminate the risk that future earnings will reduce your benefits.

How Is the Amount of a Section 32 Settlement Decided?

• Amount of lost wages: This includes past lost wages and any future wages you may lose due to the injury.
• Cost of medical care: This includes your past medical bills and any expected future treatments related to the work injury.
• Extent of the injury: More serious or long-lasting injuries usually result in higher settlement amounts.
• How long you’ve been receiving benefits: If you've already received wage or medical benefits for a long time, it may affect the final amount offered.
• Disputes in your case: If there is disagreement about whether your injury is work-related or how severe it is, that may lower the insurance company’s offer.

What Happens After You Sign a Section 32 Agreement in NYC?

1. Approval by the Workers’ Compensation Board

2. Attending the Settlement Hearing

3. Judge’s Decision

4. Payment of the Settlement

• Lump sum : One-time full payment.
• Structured payment : Scheduled payments over time (less common).

5. Tax and Benefit Considerations

6. Case Closure

Can You Change Your Mind After Agreeing to a Section 32 Settlement?

• You must submit a written notice of withdrawal to the Board within 10 calendar days from the date the agreement was submitted.
• You cannot cancel the agreement just by telling someone —you must submit it in writing to the Workers’ Compensation Board.
• Once those 10 days pass, the agreement becomes final, conclusive, and binding on all parties. You generally cannot reopen the case afterward, even if your medical condition worsens.

What Should You Consider Before Signing a Section 32 Waiver Agreement in NYC?

• You Give Up Future Benefits: A Section 32 settlement usually means you give up your right to any future workers’ comp benefits related to your injury. This includes medical care and payments for lost wages. If your condition gets worse later, you cannot ask for more money.
• Make Sure Medical Needs Are Covered: Before settling, think about your future medical costs. If you still need treatment, ask whether the settlement includes funds for long-term care. In some cases, a Medicare Set-Aside account might be needed to cover future medical bills.
• Understand What You’re Signing: The language in a Section 32 agreement can be hard to understand. It’s important to read everything carefully or have a workers’ compensation attorney explain the terms to you.
• Consider Your Current Situation: Ask yourself if you’re financially ready to handle future costs if something goes wrong. A quick payment now may seem helpful, but it might not be enough to cover long-term needs.
• The Settlement Is Final: Once the agreement is approved, you cannot change your mind. You can’t reopen the case or file another claim for the same injury. That’s why making the right decision now is so critical.
• Insurance Company Goals May Differ from Yours: Insurance companies often want to close cases quickly and for as little money as possible. Their interests may not align with your health, income, or future needs.
• Impact on Other Benefits: A Section 32 settlement might affect other public benefits you receive, like Social Security Disability or Medicaid. Always ask how a large sum of money could impact these programs.

Frequently Asked Questions About Section 32 Waiver Agreements in New York

1. What is a Section 32 waiver agreement? A Section 32 waiver agreement is a type of workers' compensation settlement in New York. It is a legal agreement where the injured worker agrees to close out their claim in exchange for a one-time payment. After signing this agreement, the worker usually gives up the right to ask for more benefits related to that injury in the future.
2. Can I still get medical treatment after signing a Section 32 settlement? It depends on the agreement. Many Section 32 agreements include a waiver of future medical benefits. That means you’ll be responsible for your own treatment costs once the case is closed. In some cases, future medical coverage may be handled by a different insurer, like Medicare or a private plan.
3. Do I need approval from a judge? Yes. All Section 32 waiver agreements must be approved by the New York Workers’ Compensation Board. The judge will review the deal to make sure it is fair to all sides and that you understand what you’re giving up.
4. Can I back out after signing the agreement? You have 10 calendar days from the date the agreement is submitted to the Workers' Compensation Board to withdraw. Once that period passes without a written withdrawal, the agreement is final and cannot be changed.
5. What makes a Section 32 settlement different from ongoing benefits? Regular workers’ comp benefits are paid over time. They may include payments for lost wages and medical bills. A Section 32 settlement, on the other hand, is a one-time lump sum payment that ends your right to future benefits related to that claim.
6. Will settling affect my Social Security or Medicare? It could. A Section 32 settlement might lower your future Social Security Disability (SSD) or Medicare benefits if not handled properly. That’s why it’s important to structure the settlement in a way that protects those benefits.
7. How is the settlement amount decided? The amount depends on several factors. These include how serious your injury is, whether you can return to work, how much treatment you need, and how much the insurance company estimates your future benefits would cost.
8. Can I include more than one type of benefit in a Section 32 agreement? Yes. A Section 32 settlement can cover lost wages, future medical care, or both. However, once both are included and the agreement is approved, you can’t reopen the case later to ask for more.
9. Is a Section 32 settlement right for everyone? Not always. This type of settlement can be helpful if you want to avoid long legal battles. But it also means giving up future benefits, so it’s important to look at your long-term needs before deciding.
10. Should I talk to a lawyer before signing? Yes. A Section 32 agreement is a legal contract with lasting effects. Speaking with a workers' compensation lawyer can help you understand your rights, weigh your options, and make sure your settlement is fair.

Sources

• NYS Workers' Compensation Board – Section 32 Waiver Agreements
• NYS Workers' Compensation Board – Section 32 FAQ
• NYS Workers' Compensation Board – Section 32 Waiver Agreements Guidance
• NY Senate – WCL § 32 Full Text

Contact The Orlow Firm for a Free Consultation on Your Workers’ Comp Case

• Review your case details to understand your medical condition and financial needs.
• Explain how a Section 32 agreement works and what you would be giving up.
• Help estimate the value of a fair settlement based on your situation.
• Negotiate with insurance companies to help pursue the best outcome possible.
• Guide you through the approval process with the New York Workers’ Compensation Board.