Compliance Corner: N.Y. Approval of Settlements

New York, NY (WorkersCompensation.com) -- Beginning July 1, New York's Workers' Compensation Board will use a desk review process in place of a formal hearing to review Section 32 waiver agreements involving claimants who are represented by counsel and in which the gross settlement amount is $10,000 or less.

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The board still has the right to schedule a hearing before a workers' compensation law judge to consider a Section 32 waiver in any case in which the board determines that a hearing is warranted based on the facts and circumstances of the case.

Offer Requirement

New York law requires carriers to offer claimants the opportunity to enter into an agreement settling upon and determining the compensation and other benefits due, in the case of disability, within two years after the date the claim was indexed by the board or six months after the claimant is classified with a permanent disability, whichever is later, and in the case of death, within six months after entitlement to benefits is established for all beneficiaries.

Review

Section 32 waiver agreements may be approved administratively by the chair, a designee of the chair, a member of the board, or a WCLJ, based on a review of the record before the board.

The board shall approve the agreement unless it finds the agreement to be unfair, unconscionable, improper as a matter of law or the result of an intentional misrepresentation of a material fact. If the agreement is reviewed administratively, the board shall advise the parties in writing of the date the agreement shall be deemed submitted

The board may also schedule a hearing to question the parties about the agreement. If a hearing is scheduled, the agreement will be deemed submitted for the purposes of Section 32 at such hearing.

A hearing is always scheduled by the board to resolve a Section 32 waiver agreement unless:

+ All parties other than minors and unrepresented claimants request desk review.

+ The agreement settles indemnity benefits only.

Agreements will not be approved for a period of 10 calendar days after submission to the board.

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