Search Site
Menu
What is a Section 32 Settlement?

If you’re in the midst of a workers’ compensation claim in New York, you may be eager for a resolution of your claim(s). You may have heard of Section 32 settlements, which offer workers’ compensation claimants in a one-time lump sum payment that resolves either all or a portion of an injured worker’s claims. While Section 32 settlements can be a great solution for some, they’re also accompanied by certain risks. Read on to learn if you’re a good candidate for a Section 32 settlement.

How do Section 32 settlements work?

Section 32 settlements offer injured workers a one-time tax-free payment to a worker in exchange for that worker’s promise that he or she will no longer pursue their workers’ compensation claim(s). Most Section 32 settlements resolve both the worker’s lost wage payments as well as their medical claims. However, sometimes insurers will agree to settle only the lost wages claims. An insurance carrier may make you a Section 32 settlement offer, but you should spend time with your attorney calculating what you believe you should receive in lost wages and medical payments before accepting such an offer, to ensure that it is fair and will provide for your needs.

Your doctor should be able to tell you whether or not you will need a medical care en future, and how much that care is expected to cost. If you anticipate needing to pay for a great deal more medical care, the settlement may need to include a Medicare Set Aside (MSA). This portion of your settlement is intended to be used only for future medical payments. Once the MSA is depleted, then Medicare should cover your injury-related expenses, though likely not to the full extent that workers’ compensation would cover these expenses.

Should I consider a Section 32 settlement?

New York places a cap on the number of years that workers with a permanent partial disability can collect weekly workers’ compensation payments. This might make a lump sum settlement of those payments more appealing  to some claimants under certain circumstances. It is important to reach an accurate projection of the amount in lost wages you anticipate receiving to settle your claim(s) for a fair sum,  for and the amount and extent of future medical care, if required

A Section 32 settlement might be a great solution for you if your medical claims are largely understood and resolved. If your doctor is unable to say with certainty how much more care you will need, or cannot opine how successful any future surgeries may be, then accepting a Section 32 settlement could be risky.  Unless settlement of your compensation claim is for lost wage benefits only  (indemnity settlement only) such settlement may leave you with a limited sum to pay for additional care if such settlement includes  your medical benefits.  Additionally if you re-injure yourself at work, your Section 32 settlement could affect future lost wage benefits and medical care for such re-injury. It is critical to speak with an experienced and trustworthy attorney before accepting a Section 32 settlement.

If you have been hurt on the job in NYS and need help understanding the multiplicity of complex issues affecting your Worker’s Compensation claim vis-à-vis a Section 32 settlement, or any of the other issues surrounding a NYS Retirement Disability case, a Worker’s Compensation case, or a Social Security Disability appeal, feel free to contact Peter M. Cordovano at 845-691-4200.

Contact us

Please fill out the form below and our attorney will contact you.

Quick Contact Form

Our Office
  • Highland Office
    1 N Roberts Road
    Highland, New York 12528
    Phone: 845-691-4200
Awards
  • Martindale-Hubbell AV Preeminent Peer Review Rating Badge showing Peter M. Cordovano is rated AV Preeminent
  • Avvo Rating Badge showing Peter M. Cordovano is rated a 9.0 Top Attorney
  • New York State Bar Association Logo
  • New York State Trial Lawyers Association Logo
  • Manhattan College
  • Touro Law College logo
Testimonial
  • "Peter, you can go ahead and start paperwork. I know it’s not a fair settlement, but I’m drowning. Don’t know what else to do Thank you for everything you’ve done for me. I really do appreciate you."  -–Valerie S

  • "I hope that this letter finds you in good spirits and in excellent health. I know we’ve had our difficult moments (usually due to my constant need for reassurance from you). But there isn’t a day that I don’t thank God for your levelheadedness and perseverance. Thank you."  -–Eileen

  • "Dear Peter, We can’t thank you enough for all of your help! We appreciate it more than you know! Thanks."  -–Rick, Debbie & Ricky

  • "I would like to thank you for all you have done for me and my family. You’re the best!"  -–A. Chambers

  • "Many thanks for your donation to our 2nd Annual Huskies 5K Challenge. The event was a tremendous success due in large to your generous support."  -–HMS PTA

  • "Thank you for sponsoring me to play on the Dutchess Debs. I am having lots of fun and learning a lot. I look forward to the upcoming spring season."  -–Jordan C.

  • "We are so tardy thanking you so please know we are so grateful for your time with us, prep phone calls to Bob Lackaye and follow up work on behalf of Spencer. We are resting with her anxiety about moving forward and pushing Spencer out to be a part of the workforce and world again. Believe me we are so thankful for the many miracles since the accident on July 12, 2014! Thank you for meeting us and assessing Spencer and his needs in such a caring and professional way. Your staff was friendly, caring and supportive the entire time we were in touch with your office. Many thanks for your time! Blessings to you all!"  -–D.E

  • "Dear Peter, Thank you so very much for your thoughtful and beautiful plant. Believe it or not, it will join the one you sent 5 years ago which has developed into many others too!"  -–Fondly, Deb & Jo

  • "Mr. Cordovano, Hello! First, I’d like to thank you for the job you did on my case earlier this year! I really appreciate all you did, and will refer anyone I know that needs wc legal help to you! I opened my mail today and received this! I was rather surprised. MAC NEEDS to pay this. It was from the day I hurt myself! Thanks again for all your help!"  -–Sincerely, Ferris Rugar

  • "I wish to thank Peter Cordovano and the rest of your staff for a job well done. Your excellent services and hospitality will be shared and highly recommended. Thanks again so much."  -–John Dorn.