#section 32

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Scheduled Loss of Use (SLU) or Section 32? It's a question our clients and potential clients ask every day, and it's important to know because the difference between the two claims can be significant. But what exactly are they? This guide will help you understand how they work and what they cover so that you can make the most out of your workers' compensation package.

How Does a Schedule Loss of Use Occur?

Schedule Loss of use refers to a permanent loss of a limb or an extremity resulting from a work injury. It can be challenging and time-consuming to accurately determine when there has been a schedule loss of use. A doctor normally begins the process when they decide you require no more treatment after an accident, which can occur as early as nine months after the accident.

Workers' Compensation Law specifies the number of weeks for each extremity or digit.

The following formula is used to work out the compensation award:

Your injured body parts

How much you earn on average each week

As determined by the judge, the percentage of function loss (or SLU percentage)

Qualifications for Scheduled Loss of Use

An SLU only applies to injuries to the legs, arms, knees, feet, hands, and fingers. Back, neck, or head injuries are not covered. Your claim should be settled when your doctor declares that you have reached Maximum Medical Improvement (MMI). The law always requires that these payments be made at the total compensation rate.

A Schedule Loss of Use is not necessarily intended to make up for income lost. Thus, an SLU may be awarded even if:

Injured workers are not absent from work

An injured worker cannot work or

An injured worker returns to work without receiving reduced earnings

An SLU award is determined by how many benefit weeks the worker is eligible for, their level of disability, and past earnings. The doctor will state the percentage of disability with the number of weeks allowed to determine if an employee has reached MMI. 

Section 32 Settlements

Workers who agree to accept Section 32 settlements promise they will no longer pursue workers' compensation claims in return for a one-time, tax-free payment. Section 32 settlements are often used to resolve medical claims and lost wages.

An agreed-on settlement (involving indemnity or medical benefits) is closed once it is approved by the Workers' Compensation Board. When this occurs, the insurance provider is no longer responsible. However, it is important to note that unless the Workers' Compensation Board has approved the Section 32 Settlement, it is not binding.

If you wish to pursue a Section 32 Settlement, follow the following steps that must be followed:

The claim will be settled either by the insurance company contacting your lawyer or by contacting the insurance company. A person without a lawyer will deal directly with the insurance company and its lawyer.

The insurer drafts the settlement agreement.

Your lawyer, you, and the insurance company must be in agreement.

Once an agreement is reached, the Workers' Compensation Board will review it.

The Workers' Compensation Board must approve a settlement for it to be final and binding.

You have ten days to withdraw from the Section 32 Settlement submission if you no longer wish to proceed. The submission date is the hearing date if you have one. The settlement board will issue its final decision unless the settlement is withdrawn in writing within the withdrawal period.

The insurance company has ten days from the date the final decision was issued to pay you. A proposed decision will be mailed to you if the board approves the settlement without requiring a hearing. After receiving the decision, you will have ten days to withdraw. If neither party withdraws, the agreement becomes final, and the Insurer must pay you within ten days.

Occasionally, the Board will use its authority under Rule 300.36(e) to conduct a desk review of Section 32 Waiver Agreements and ultimately decide whether to approve or deny the agreement.

A couple of possible desk review examples:

An injured worker (other than a minor dependent) is represented by an attorney in an indemnity case

There is agreement among all parties in the case of conducting a desk review.

Options for Section 32 Settlements

Medical care and lost wages are included in workers' compensation benefits. Therefore, you can settle one case while keeping the other case open under a Section 32 Settlement. Also, you and the insurance company can decide to settle both and end your case.

Medical Care

It is important to note that the insurance company will never pay for your medical care again if you end your medical care with a Section 32 Settlement. Instead, you will get a lump sum amount. Save this money away in case you need it in the future for surgeries, procedures, or medicine.

Lost Wages

They can pay your lost income to you either in one lump sum or as an annual payment. Your lawyer, the insurance company, and you will negotiate the amount of your workers' compensation payment. Besides being tax-free, this payment will be your last one.

The most significant thing to keep in mind when settling a claim for losing an extremity is making sure that you maximize your settlement and retain medical coverage for life if necessary. For example, loss of Use Schedules ('SLUs') provides lifetime medical protection, whereas a Global Section 32 agreement permanently ends your case.

If an insurance company offers you a Global Section 32, it will give you a lump sum now, but you will be responsible for all future medical expenses. If future medical treatment is negligible and can be paid for from one's pocket, then a Section 32 agreement is appropriate.

Typically, a shoulder or knee injury treated with surgery may require another surgery years later because of the natural degeneration of the joint. The settlement must therefore include medical protection for life.

Know Your Options

An experienced workers' compensation attorney can be of assistance if you've been injured on the job, and especially if you believe that your injury may result in permanent impairment. However, in trying to determine the correct path for your claim, you cannot rely solely on what you hear. At Littman & Babiarz Attorneys at Law, we believe in being open and honest with clients, and we encourage you to participate in your case.

Call the Littman & Babiarz Attorneys at Law workers compensation attorneys who serve in Geneva, Ithaca, Auburn, Tompkins County, Seneca County, Cayuga County, Cortland County, Schuyler County, Chemung County, Tioga County, Yates County, Onondaga County, Broome County, Lansing, Watkins Glen, and Owego at 607-277-7527 (Ithaca location) or 315-253-8967 (Auburn location) to schedule a free consultation.