Step 1: maximum medical improvement
Maximum medical improvement (MMI) is the point at which your treating doctor expects no significant further improvement from treatment. It is a turning point: in many states temporary disability benefits end or change, and permanent disability benefits begin. Florida's statute, for example, starts impairment income benefits the day after MMI or the end of temporary benefits, whichever is earlier, and Ohio lets you apply for a permanent partial award 26 weeks after temporary benefits end.
Step 2: the impairment rating
At or after MMI, a doctor assigns a permanent impairment rating, often using the AMA Guides to the Evaluation of Permanent Impairment. Your state turns that rating into weeks of benefits, through a body-part schedule or a whole-body formula. That statutory value is the anchor for any settlement offer. Estimate it with the settlement calculator.
What a settlement closes
A settlement trades some or all of your future benefits for an agreed amount. The key question is which benefits it closes:
- Wage (indemnity) benefits only, leaving medical care open.
- Medical benefits too, which shifts the cost of future treatment to you. If you are on Medicare or may be soon, a Medicare set-aside may be needed.
- Lump sum or annuity. New York's Board describes Section 32 agreements as settling indemnity and/or medical benefits for a lump sum payment or an annuity.
Approval by state
| State | Settlement | What the official source says |
|---|---|---|
| New York | Section 32 waiver agreement | Once approved by the Board, whatever is settled is closed forever. |
| Pennsylvania | Compromise and release (LIBC-755) | Not valid and binding unless approved by a workers' compensation judge. |
| North Carolina | Compromise settlement agreement ("clincher") | A voluntary, complete and final settlement for a negotiated amount. |
Before you sign
A final settlement is usually permanent. Check the offer against your statutory award, your expected medical costs, any effect on SSDI, and how a lump sum will be described in the agreement. A workers' compensation attorney can review it before you sign.
Frequently asked questions
How long does it take to get a workers comp settlement?
There is no fixed timeline. Settlements usually come after you reach maximum medical improvement and receive an impairment rating, because until then neither side knows the value of the permanent injury. After an agreement, most states require approval by the agency or a judge before payment.
Should I accept the first workers comp settlement offer?
Compare it first with the statutory value of your rating, which you can estimate with our settlement calculator, and with the cost of any future medical care the settlement would close. Some agreements, such as New York's Section 32 waivers, can settle wage benefits while leaving medical care open.
Can I reopen a workers comp settlement?
A full and final settlement is generally permanent once approved. New York's Board, for example, says that whatever is settled in a Section 32 agreement is closed forever, and Pennsylvania's compromise and release form says the employer will never have to pay other compensation unless the agreement provides for it.
Sources
Checked November 3, 2026.
- NY Workers' Compensation Board, Section 32 waiver agreements
- PA Department of Labor & Industry, Compromise and Release Agreement (LIBC-755)
- NC Industrial Commission, workers' compensation bulletin
- Fla. Stat. 440.15, impairment benefits after maximum medical improvement
- Ohio Rev. Code 4123.57, partial disability compensation
- SSA POMS DI 52150.060, lump sum settlements