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

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Cindy Cordova

Legal Writer at The Orlow Firm | Website

Cindy Cordova is a seasoned legal writer with over seven years of experience crafting clear, informative, and professional content for law firm websites. With a B.A. in English from Trinity Christian College, she combines her strong writing background with a deep understanding of legal topics to help firms connect with their clients through trustworthy and accessible content.

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• June 25, 2025

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 it is highly unlikely that the claim can be reopened unless explicitly agreed upon by the insurance company.
• 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.

If you’re considering a Section 32 settlement or have questions about what it means for your case, the workers comp attorneys at The Orlow Firm are here to help. Call us at (646) 647-3398 for a free and confidential consultation.

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

A Section 32 settlement is very different from getting regular workers’ compensation benefits in New York. Understanding these differences can help you decide what’s best for your situation.

With regular workers’ comp, you may receive weekly payments and have your medical bills paid over time. These benefits can last until your condition improves or your claim is closed. In contrast, a Section 32 waiver agreement is a one-time payment that ends your case for good.

Here are some key differences:

• 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.

For example, a worker injured on a NYC construction site might get regular workers’ comp benefits for months or even years. But if they enter into a Section 32 settlement, they’ll take an agreed-upon lump sum and close the case completely—even if their condition gets worse later.

This can be helpful if the person wants to move on or needs ongoing money fast. But it can also be risky if more treatment is needed in the future. That’s why it’s important to think carefully before accepting a Section 32 settlement.

If you’re unsure whether to settle or continue receiving weekly benefits, speaking with a workers’ compensation attorney can help you weigh your options. For guidance tailored to your case, contact The Orlow Firm at (646) 647-3398 for a free consultation.

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

Choosing a Section 32 waiver agreement in your New York workers’ compensation case can offer important benefits—but it also comes with some drawbacks. Understanding both the pros and cons can help you decide whether settling your case this way is the right move for you.

Pros 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.

Cons of a Section 32 Waiver Agreement

• 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.

A Section 32 waiver agreement can make sense if you want to take control of your future and end your involvement with the workers’ comp system. But it’s not right for everyone—especially if your medical needs are ongoing or unclear.

Before making a decision, it’s helpful to speak with a lawyer who understands workers’ compensation law in New York City. To discuss your options, call The Orlow Firm at (646) 647-3398 for a free consultation.

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

In New York, almost anyone with an open workers’ compensation claim may qualify for a Section 32 waiver agreement. A Section 32 settlement is a way to close out your workers’ comp case in exchange for a lump-sum payment. However, not every case is right for this type of settlement.

Here are the basic requirements and situations where you might qualify for a Section 32 agreement:

• 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.

It’s important to know that both full-time and part-time workers may qualify, including construction workers, health care employees, restaurant staff, and delivery drivers — all common roles in NYC. Even undocumented workers can qualify for workers’ compensation benefits and may access a Section 32 settlement.

There are also different types of Section 32 settlements. Some include medical coverage, while others close out both wage and medical benefits. If your injury is serious and you still need treatment, you may consider settling wage benefits only and keeping your medical coverage open.

Before agreeing to a Section 32 settlement, it’s important to fully understand what you’re giving up and what you’re receiving in return. Once approved, these agreements are final and hard to undo. Talking with an experienced workers’ compensation attorney in New York City can help you decide if this is the right step for you.

To learn more about whether you qualify for a Section 32 settlement, call The Orlow Firm at (646) 647-3398 for a free and confidential consultation.

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

Settling your workers’ compensation case under a Section 32 waiver agreement might make sense in certain situations. This type of settlement closes your case in exchange for a one-time lump sum payment. While it’s not right for everyone, there are times when it can be a smart choice.

Here are some examples of when settling through a Section 32 agreement might be a good idea:

• 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.

Of course, every case is different. For example, if you’re still getting medical treatment or your condition is expected to get worse, it might be better to keep your case open. Once a Section 32 agreement is final, you cannot ask for more benefits later—even if your condition changes.

If you’re thinking about settling your workers’ comp case, it’s important to understand how a Section 32 agreement works and how it might affect your future. A lawyer familiar with New York workers’ compensation law can help you decide whether a settlement is the right step for you. To speak with someone about your options, call The Orlow Firm at (646) 647-3398 for a free consultation.

How Is the Amount of a Section 32 Settlement Decided?

The amount of a Section 32 settlement in New York is not fixed. It is based on many factors that are unique to each worker’s comp case. A Section 32 agreement is a legal settlement between the injured worker and the insurance company. Once agreed upon, it ends the worker’s right to receive future payments or medical care related to the injury.

Here are the main factors that help decide how much money you may receive in a Section 32 settlement:

• 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.

In New York City, cost of living and medical expenses may also play a role. Settlements are usually paid in one lump sum. Sometimes, benefits set aside for future medical care are part of the deal. This is called a Medicare Set-Aside (MSA) and is required in some cases when the worker is eligible for Medicare.

Insurance companies will often try to settle for less to reduce their risk. That’s why it’s important to carefully review any offer before agreeing. Once approved by a workers’ compensation judge, the settlement is final and usually cannot be changed.

Before you settle your case, it may help to speak with someone who understands Section 32 agreements and how they are handled in New York. For support with your workers’ comp case, contact The Orlow Firm at (646) 647-3398 to schedule a free consultation.

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

After you sign a Section 32 waiver agreement in New York City, your workers’ compensation case does not close right away. There are still a few important steps that need to happen before the agreement becomes final and you receive your settlement.

1. Approval by the Workers’ Compensation Board

Once both sides sign the agreement, it must be sent to the New York State Workers’ Compensation Board for review. The Board will look at the agreement to make sure it is fair and that all legal requirements are met.

A Workers’ Compensation Law Judge will then schedule a hearing to review the agreement. This hearing usually happens within a few weeks.

2. Attending the Settlement Hearing

You will need to attend the hearing, either in person or virtually. The judge will ask if you understand the terms of the agreement and if you are agreeing freely. If you don’t understand any part of the agreement, this is the time to speak up.

In some cases, especially if you are not represented by a lawyer, the judge may spend more time making sure the settlement is fair and clearly understood.

3. Judge’s Decision

If the judge believes the settlement is fair and that you fully understand the terms, they will approve the agreement. At that point, your workers’ comp case is officially closed, and you will no longer receive weekly benefits or future medical coverage unless the agreement says otherwise.

4. Payment of the Settlement

Once the settlement is approved, the insurance company has 10 days to send the agreed payment. This can be made as either:

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

Make sure you ask how and when the payment will be made so you can plan your finances accordingly.

5. Tax and Benefit Considerations

In most cases, Section 32 payments are not taxable. However, you may need to report it if you receive other types of government assistance. Also, settling your case might affect your eligibility for Medicare or Social Security Disability benefits. It’s helpful to speak with someone who understands how these programs work.

6. Case Closure

After payment is made and the case is closed, you generally cannot go back and ask for more money. You also give up the right to future medical treatment related to your injury unless the agreement says otherwise. That’s why it’s important to be certain before signing.

Need help understanding what happens after you sign? Call The Orlow Firm at (646) 647-3398 for a free consultation. We can explain your options and answer your questions with care and clarity.

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

Once you sign a Section 32 waiver agreement in New York, you may still have a short time to change your mind. However, the ability to cancel or “back out” is very limited and time-sensitive.

In NYC, a Section 32 settlement becomes official only after a judge from the New York State Workers’ Compensation Board approves it. This approval usually happens following a hearing where both sides—the injured worker and the insurance company—agree on the terms.

After the judge approves the agreement, you have 10 calendar days to change your mind. This means:

• You must file a written request to cancel the agreement within 10 days from the date the judge approves it.
• 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 settlement is final and legally binding. You usually can’t reopen the case afterward, even if your medical condition worsens.

Here’s an example: If the judge approves your Section 32 settlement on June 1, you have until June 11 to file a written notice if you want to cancel it. After that, you no longer have the option.

This 10-day “revocation period” gives injured workers a chance to rethink the agreement. Sometimes, people feel rushed or uncertain during the hearing. This window gives you time to reconsider and consult with a workers’ compensation attorney if you haven’t already.

Because Section 32 settlements close your case for good, it’s important to understand what you’re giving up. These agreements usually mean giving up rights to future medical care and wage replacement for the same injury. Once finalized, the insurance carrier no longer has to pay for any more treatment.

If you are unsure about your settlement or think you made a mistake, time is critical. You must act quickly before the 10-day period ends. If you have questions or need legal guidance, call The Orlow Firm at (646) 647-3398 for a free and confidential consultation.

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

Before signing a Section 32 waiver agreement in New York City, it’s important to carefully consider all the risks and benefits. A Section 32 agreement settles your workers’ compensation case in exchange for a lump sum payment. Once it’s approved by the Workers’ Compensation Board, your case is permanently closed and cannot be reopened. That’s why you should make sure you fully understand what you’re agreeing to.

• 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.

In a busy and expensive city like New York, having reliable income and medical coverage matters. Before signing a Section 32 waiver agreement, it’s smart to get legal advice. You deserve to make the choice that protects both your health and financial future.

If you’re considering a Section 32 settlement in NYC and have questions, contact The Orlow Firm at (646) 647-3398 for a free, confidential consultation. We’re here to help you understand your options and make informed decisions.

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 up to 10 days to cancel a Section 32 settlement after the Workers’ Compensation Board approves it. After that, the agreement is final and can’t 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.

If you have more questions about Section 32 waiver agreements in New York City, or if you’re unsure whether settling is the right choice for you, call The Orlow Firm at (646) 647-3398 for a free and confidential consultation. We’re here to help guide you through the process with care and clarity.

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

If you are considering a Section 32 waiver agreement to settle your New York workers’ compensation case, it’s important to fully understand your rights. At The Orlow Firm, we offer free, confidential consultations to help you explore your legal options and decide whether a Section 32 settlement is right for you.

A Section 32 waiver agreement is a legal way to settle your workers’ comp case by giving up future benefits in exchange for a lump-sum payment. While this can be a good choice for some, it is not the best solution for everyone. Every case is different, and making this decision without legal guidance can lead to problems later on.

The Orlow Firm has years of experience helping injured workers in New York City. When you contact us, we can:

• 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.

We understand how overwhelming a work injury can be—physically, emotionally, and financially. That’s why we offer compassionate legal help with no commitment during your first consultation.

To speak with a New York workers’ compensation attorney about your Section 32 agreement or any other part of your case, call (646) 647-3398. Our team is ready to answer your questions and help you take the next steps with confidence.

The Following People Contributed to This Page

Cindy Cordova

Legal Writer at The Orlow Firm | Website

Cindy Cordova is a seasoned legal writer with over seven years of experience crafting clear, informative, and professional content for law firm websites. With a B.A. in English from Trinity Christian College, she combines her strong writing background with a deep understanding of legal topics to help firms connect with their clients through trustworthy and accessible content.

Read More