Can I settle a workers’ compensation case?

You can settle your workers’ compensation case and receive benefits in a lump sum or in installments. In New Jersey, two types of settlements are used in workers’ compensation cases – Section 20 settlements and Section 22 settlements.

You can enter into a Section 20 settlement and receive a lump sum. You cannot reopen the case once it is settled. A judge must approve the settlement. If the insurance company accepted the claim, you cannot enter into a Section 20 settlement. There must be a dispute involving, for example, the cause of your injury.

You can enter into a Section 22 settlement and agree with the insurance company on your permanent disability rating. You will receive permanent disability benefits in installments. If your condition gets worse after the Section 22 settlement, you can seek additional benefits by filing a petition to reopen the claim. You must seek to reopen the claim within two years from the last payment under the settlement.