Lump Sum Agreement Vs Weekly Benefits
A Section 32 lump sum agreement typically ends an injured worker’s right to ongoing workers’ compensation payments and also ends the carrier’s obligation to pay those wages.
As a result, it is important for an injured worker to consider any future medical expenses that may incur due to the work-related injury including any surgery, physical therapy, prescriptions and other costs. It is advisable to seek help from and consult with an experienced New York workers’ compensation attorney before making a final decision on a Section 32 lump sum agreement.
Changes to New York Workers’ Compensation Law in 2007 capped the time for which an injured worker is able to receive benefits for a permanent partial disability. Therefore, receiving a lump sum may be advantageous for those who have been determined to have suffered permanent disability.
In the long run, you may not receive as much compensation if you decide to agree to a lump sum settlement, but this is not always the case. Additionally, there are several other factors to consider which may be more important than the total compensation received when determining whether or not to take a lump sum payment.
What Is The Process Involved In A Section 32 Lump Sum Settlement?
In the context of a New York Workers’ Compensation claim, a lump sum settlement is a final agreement which cannot be reversed. However, there are several necessary steps that must be completed before a lump sum agreement can be settled.
First, a proposed agreement must be approved from a New York Workers’ Compensation Judge. Then there will be a ten day waiting period in which either party involved in the agreement may withdraw and lastly, the final decision will be issued.
After issuance of the final decision in a Section 32 agreement the lump sum payment is made and the case is closed.