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Settlements, Section 32, & Schedule Loss.

When your case starts moving toward a number, the math, the timing, and the strategy all matter. Here's how settlement actually works in New York workers' compensation — and what to watch for.

01What is a Section 32 settlement?

A Section 32 settlement is a one-time, lump-sum agreement that closes out some or all of a workers' compensation claim. Both sides — claimant and carrier — agree to a number, the Board approves it after reviewing the file and questioning the claimant on the record, and the carrier writes a check.

Section 32 settlements can resolve:

  • Indemnity (lost wages) only — you get a lump sum, but the carrier remains on the hook for future medical care
  • Medical only — less common, but used when wage loss is mostly past and medical exposure is the open question
  • Full and final — both indemnity and medical, completely closing the case

Once the WCLJ approves the agreement and the appeal period passes, it is final. You cannot reopen it later because your back got worse, you needed surgery, or your condition was misjudged. That permanence is the entire reason carriers pay lump sums in the first place — and the entire reason the number has to be right before you sign.

02How long does a settlement take?

From "let's talk numbers" to money in your account, expect 3 to 9 months. The phases:

  1. Negotiation (4–8 weeks). Demand letters, counter-offers, sometimes a mediator. The right number depends on permanency rating, future medical exposure, life expectancy, and how strong your AWW position is.
  2. Drafting the Section 32 agreement (1–2 weeks). The agreement itself is a detailed document — far more than just the dollar number. Future medical, Medicare set-aside language, language about other body parts, and indemnity allocations all get specified.
  3. Section 32 hearing (4–8 weeks to schedule). The WCLJ reviews the agreement on the record, asks the claimant a list of questions to confirm understanding, and approves or rejects. Approval at the hearing is the norm.
  4. 10-day appeal window. Either side can withdraw within 10 days of approval.
  5. Payment (usually within 30 days of finality). The carrier issues the check after the appeal window closes.

The cheapest settlement isn't the worst settlement. The wrong settlement is — the one that closes future medical right before a fusion, or that locks in an undervalued AWW.

— Levi A. Grosswald, Esq., NY Workers' Compensation Attorney

03Schedule Loss of Use awards.

SLU is a parallel track to Section 32 — and often a better one when your injury is to an extremity. The law assigns each body part a maximum number of weeks of benefits, payable as a lump sum at your weekly rate, multiplied by your percentage of loss.

Body PartMax Weeks (100% Loss)
Arm312
Leg288
Hand244
Foot205
Eye160
Thumb75
First Finger46
Hearing (one ear)60

The SLU amount is computed at your weekly rate × the assigned weeks × your loss percentage. Example: a 25% schedule loss of use of the arm at the current maximum weekly rate is $1,222.42 × 312 × 25% = roughly $95,348.76 (less credits for indemnity already paid).

Interactive Estimator

Run the SLU Estimator — actual NY guideline math, shoulder & knee.

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Free Tool · For Settlement Math

Calculate the weekly indemnity rate that backs into your SLU and Section 32 numbers — and audit prior carrier payments period-by-period.

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04Attorney fees, demystified.

You don't pay legal fees out of pocket in a New York workers' comp case. Attorney fees are set by statute (WCL § 24) and approved on the record by the Workers' Compensation Law Judge — typically 15% of past-due, retroactive, SLU, or Section 32 awards — out of the moved money. If no money moves on your behalf, no fee.

The 15% Rule, Specifically

15% of moved money means: 15% of past-due indemnity the carrier paid as a retroactive lump, 15% of an SLU award, 15% of a Section 32 settlement amount. It does not come out of your ongoing biweekly checks once they are flowing routinely. It does not come out of medical benefits.

05Medicare and your settlement.

If you're on Medicare, about to be on Medicare, or have a reasonable expectation of Medicare within 30 months, your settlement may need a Workers' Compensation Medicare Set-Aside Arrangement (WCMSA). This is money carved out of the settlement and earmarked for future treatment that Medicare would otherwise cover.

WCMSAs are technical, sometimes large, and easy to mishandle. The wrong allocation can leave you paying out of pocket for years for treatment Medicare won't cover. The right allocation, professionally administered, protects both you and your settlement.

06Common settlement questions.

What is a fair Section 32 settlement amount?
A fair Section 32 amount is the present value of your remaining indemnity exposure plus your future medical exposure, adjusted for case strength and age. Fair value is a function of your weekly indemnity rate, your remaining indemnity exposure (cap weeks for non-schedule, weeks remaining for SLU), your future medical exposure, your age and life expectancy, the strength of your causation, and any open issues the carrier wants to settle. A real evaluation looks at all of these — not just a multiple of past payments.
How long after my Section 32 hearing will I get paid?
Approval at the hearing starts a 10-day appeal window. Once that closes, the carrier generally has 10 to 30 days to issue payment. Most settlements pay within 30 to 45 days of the hearing.
Will my settlement affect my Social Security Disability?
Yes, a Section 32 settlement can affect Social Security Disability — but proper drafting can minimize or eliminate the SSDI offset. Properly drafted Section 32 language allocates the lump sum over your life expectancy, which spreads the settlement across years rather than triggering an immediate offset. Sloppy drafting can leave SSDI offsetting your settlement for years. This is a place where the legal drafting matters as much as the dollar number.
Can I settle if my case was never established?
Yes. Many Section 32 settlements happen on controverted (denied) claims, where the carrier pays a smaller amount in exchange for closing the case before the merits are decided. These can make sense when liability is genuinely uncertain — but they also can be the carrier's way of buying off a strong case at a discount.
What's the difference between SLU and Section 32?
SLU is a benefit category — a defined lump-sum award for permanent injury to an extremity, calculated by formula. Section 32 is a settlement vehicle — a negotiated agreement to close out some or all of a claim. You can negotiate the value of an SLU finding through a Section 32, or you can let it go through the normal permanency process. Sometimes one approach yields more; sometimes the other does.
Can I change my mind after signing a Section 32?
For 10 days after the WCLJ approves the agreement, yes — either side can withdraw. After that 10-day appeal window expires, the agreement is final and binding. There is essentially no "I changed my mind" remedy after that.

SLU body-part deep dives

Each scheduled body part has its own number-of-weeks value and its own range-of-motion math. The pages below break down the formula, surgical floors, and IME measurement tricks per part.

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What to Do When Your Workers' Comp Claim Is Denied

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