Suffering an injury at work can be a life-altering experience. Not only are you faced with physical pain and rehabilitation, but also potential loss of income and uncertainty about when you’ll be able to return to work.
If you’ve been injured on the job, you may be entitled to workers’ compensation benefits to cover your medical treatment and compensate for lost wages. However, these benefits may not fully cover all your losses from the injury.Â
In some cases, you may be able to negotiate a lump sum work injury settlement with your employer’s insurance company.
How New York Workers’ Comp Settlements Work
There are two main types of New York workers’ comp settlements:
- Stipulation Agreements – These confirm the benefits you will receive based on a schedule of compensation amounts laid out in the law. For example, if you lost a limb, the scheduled amount for that injury would be stipulated.
- Section 32 Settlements – These close out your entire claim in exchange for a lump sum payment. Most workers’ comp cases end in a Section 32 settlement at some point.
To get a Section 32 settlement, you must first reach maximum medical improvement. This is when your treatment has concluded and your condition has stabilized. At this point, the insurance company will likely make a settlement offer.
The amount offered depends on factors like:
- The severity of your injury
- Your wages before the injury
- The impact on your ability to work
Settlements typically range from a few thousand dollars for minor injuries up to several hundred thousand for permanent, debilitating injuries.
When Can I Get a Settlement?
In New York, you can settle your workers’ comp claim anytime. However, it’s best to wait until you have reached maximum improvement. Settling a workers’ compensation claim too early makes it hard to value your claim properly since the long-term effects aren’t clear yet.
Many experienced workers’ comp attorneys recommend waiting at least 2 years after an injury before settling. This ensures your treatment is complete and that any complications have surfaced. However, some less serious injuries can settle earlier.
While you can settle whenever you want, the insurance company cannot force you to settle until 2 years post-injury in New York. This gives injured workers ample time to recover before closing out a claim.
Should You Accept a Settlement Offer?
The decision of whether to settle your workers’ compensation claim is an important one. A lump sum payout provides immediate financial assistance and requires you to pay future medical bills yourself.
Here are some pros and cons to weigh:
Potential Pros of Settling
- Get a large payout all at once
- Avoid having to prove ongoing disability
- Close the books on your claim
Potential Cons of Settling
- Pay for future medical expenses out of pocket
- Waive the right to seek additional benefits
- Unexpected complications not covered
It makes sense to settle your claim once you’ve reached maximum medical recovery. This is the point when treatment will no longer substantially improve your condition. Settling at this stage lets you maximize your payout while minimizing surprise medical costs.
However, every situation is unique. Consulting with an experienced New York work injury attorney is highly recommended before accepting any settlement offer. They can objectively decide whether the proposed amount adequately compensates you.
Mistakes to Avoid When Seeking a Settlement
Pursuing a workers’ compensation settlement requires understanding the process and potential pitfalls. Here are some common mistakes injured workers make:
- Settling too early before the full extent of injury is known
- Accepting the first offer instead of negotiating
- Lacking experienced legal counsel
- Failing to consider long-term medical needs
- Not understanding all settlement terms
An inadequate settlement can leave you without the care and wage replacement you need for your recovery. That’s why it’s critical to consult a knowledgeable workers’ compensation attorney prior to agreeing to any offer.
Getting Your Settlement Approved
All workers’ comp settlements must be approved by a judge at a hearing. This involves signing settlement documents and testifying that:
- You understand the settlement terms
- You agree the settlement is fair
Judges typically approve settlements negotiated by experienced attorneys. But expect close questioning if you don’t have a lawyer.
Bringing a knowledgeable workers’ compensation attorney to your settlement hearing gives you the best chance of approval since the judge will recognize their expertise.
Does a Settlement Mean I Can’t Sue My Employer?
If you settle your New York workers’ compensation claim, you give up the right to seek any other damages against your employer for the settled injury. This includes the ability to:
- Bring legal action for personal injuries against your employer.
- Seek additional benefits from workers’ compensation
- Reopen your claim if your condition worsens
However, a workers’ comp settlement does NOT prevent you from making a third-party injury claim. For example, if a vendor’s negligence on site contributed to your injury, you could potentially sue them after settling with workers’ compensation.
An experienced attorney can advise whether you have any viable third-party claims worth pursuing before you settle. It is important to fully understand what rights you are giving up in any settlement agreement.
Pursuing Maximum Compensation for Your Injuries
Partnering with an attorney experienced in settling New York workers’ comp claims is highly advisable. At O’Connor Law, their team has decades of experience negotiating and finalizing settlements.
The law firm works on contingency, meaning no fees until they get you paid. Contact their team today to learn your options for getting a fair settlement payment after being injured at work.
