I'm going to break down what a Section 32 is, the types of settlements, why people choose them, when to be careful, how the process works, what factors affect value, and what life looks like after. Let's get into it.
A Section 32 is an agreement between you and the insurance company: you get cash now, they close the case for good. Once approved, it’s final—you can’t go back later for more benefits or treatment.
It’s voluntary, so neither side can be forced into it. The big upside is closure and control; the big risk is giving up future protection if your condition gets worse.
The different types of a Section 32 Settlement are:
A lot of people go for a Section 32 because it means one lump-sum check instead of waiting on weekly payments. It also cuts out the constant hearings, disputes, and back-and-forth with the insurance company.
On top of that, once you settle, the risk shifts—the insurer’s stuck if your condition gets worse, while you’ve already got your money.
It’s also a handy way to settle disagreements about your disability or future benefits without more court fights. And if your health has leveled out, it can be a good time to lock in a deal since your future needs are clearer.
Step 1: Negotiation
You and the insurer go back and forth until you reach a deal.
Step 2: Paperwork
Once you agree, everything gets written down so the terms are clear.
Step 3: Judge Review
The Workers’ Comp Board reviews the agreement, and a judge makes sure you understand what you’re giving up.
Step 4: 10-Day Cooling-Off
Even after approval, you’ve got 10 days to change your mind if you decide it’s not right for you.
Step 5: Payment
If you don’t back out, the insurer usually has 10 days to send the check.
There’s no one-size-fits-all number for a Section 32 settlement—it all depends on your situation.
The type of injury is huge: schedule injuries (like an arm or leg) have set values, while non-schedule ones (like back or neck) are based on how much your earning ability is reduced, which can stretch over years.
Your average weekly wage sets the starting point, and your doctor’s disability rating helps show how serious the injury is.
Future medical needs, your age, and what you’ve already been paid all come into play too. Insurers will sometimes throw in a little extra—often called a “Section 32 premium”—just to close the case. And don’t forget, attorney fees and things like child support are usually taken out before you see your final check.
The “sweet spot” is after your condition has leveled out but before the judge rules on permanency. At that point, insurers still face uncertainty and are often willing to pay more for closure.
Section 32 isn’t one-size-fits-all. If you want a quick gut check on timing, value, or whether a deal makes sense, call me, Rex Zachofsky. No pressure—just straightforward answers so you can make the choice that’s right for you.
