WorkersCompDecodedIndependent guide · New York edition
Reviewed against NYS WCB primary sources · Last reviewed August 2026

Endgame

Section 32 settlements in New York workers' comp

A Section 32 agreement is how most workers' comp cases finally end: a voluntary, Board-approved settlement — usually a lump sum — that closes the claim for good. It can be life-changing money, or a costly mistake, depending on what you give up.

Key facts

What you're actually deciding

A settlement can cover indemnity only (your cash benefits) or be a full settlement that also closes future medical care. Closing medical is where the risk lives — if you may need surgery, injections, or long-term treatment, giving up medical for a lump sum can cost you far more than you receive.

Upside

Certainty & a lump sum

Money now, no more fighting the carrier, no more IMEs, and freedom to move on. Useful when the ongoing benefit is small or the case is contested.

Downside

You give up the future

No reopening, and if you settled medical, you pay for future care yourself. If you're on (or headed for) Medicare, a Medicare Set-Aside may be required so future treatment isn't shifted to Medicare.

How the process works

Before you signA §32 interacts with Social Security and Medicare. Spreading the lump sum over your lifetime in the settlement language can reduce the SSDI offset. Have a workers' comp attorney review it — their fee comes out of the award, and the Board must approve it.
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