Section 32 settlements in New York. Know what you are signing.

A Section 32 closes your case. Forever.

NY Workers’ Compensation Law § 32 allows a claimant and an insurance carrier to settle all future benefits — indemnity and medical — in a single lump-sum payment. The settlement must be approved by a Workers’ Compensation Law Judge, who determines whether the agreement is in the claimant’s best interest. The Judge reviews the settlement at a hearing called a Section 32 conference. You must appear in person or by video and confirm on the record that you understand the terms.

What the settlement resolves matters as much as the dollar amount. A Section 32 can close indemnity benefits only (leaving medical open), or it can close everything — including future medical. Closing medical means Medicare or your private insurer becomes responsible for all future treatment of that injury. CMS (the Centers for Medicare and Medicaid Services) requires a Medicare Set-Aside (MSA) allocation in many cases to protect Medicare’s interests, which can reduce the net amount you receive.

The right time to settle depends on three factors: your age and expected future medical costs, the strength of your permanency rating under § 15(3), and the carrier’s litigation risk. A young claimant closing a spinal case for life may be giving up $200,000 in future authorized medical care for a number that looks large today. An older claimant near retirement with minimal expected treatment may benefit from a lump sum that the estate can keep if they pass before collecting the full SLU award.