Should I Settle My North Carolina Workers’ Compensation Claim?

If you’ve been injured on the job in North Carolina, you may face a big decision at some point: should you settle your workers’ compensation claim? This question comes up for nearly every injured worker, and the answer isn’t always straightforward.

At Johnson & Groninger PLLC, we’ve guided many North Carolina workers through this decision. Let’s look at what settlement really means and the factors you should consider before making this important choice.

What Does Settling Your Workers’ Comp Claim Actually Mean?

First, let’s clarify what “settlement” really means in workers’ compensation cases, because there’s often confusion about this term.

Settlement vs. Rating

Many injured workers believe they’ve settled their claim when they receive payment for their permanent impairment rating. This is not a settlement.

A permanent impairment rating is a percentage assigned by your doctor after you’ve completed treatment. This rating reflects the permanent damage to the injured body part. For example, if you injured your neck, your doctor might assign a permanent impairment rating of 10% to your neck.

Under North Carolina General Statute § 97-31, you’re entitled to compensation based on this rating. The amount depends on the body part injured and the rating percentage.

Important: When you receive payment for your rating, your claim remains open. You still have the right to additional medical treatment for up to two years. This is very different from a settlement.

What Real Settlement Means

A true settlement (sometimes called a “clincher” or “compromise settlement agreement”) is:

• A lump sum payment
• In exchange for giving up all your rights under the workers’ compensation law
• A complete end to your claim
• The workers’ compensation carrier is completely out of your life

Once you settle, you typically cannot ask for more money or medical treatment, even if your condition worsens. It’s final.

Factors to Consider Before Settling

Deciding whether to settle involves weighing several important factors:

1. Your Future Employment Prospects

One major consideration is how likely you are to return to suitable employment. Ask yourself:

• Can you return to your pre-injury job?
• If not, what are your job prospects given your:
  • Age
  • Work experience and training
  • Education level
  • Permanent work restrictions

For example, if you’ve worked in construction for 30 years doing heavy physical labor, and your injury now restricts you to desk work, your employment prospects might be limited without additional training. This uncertainty about future earnings should factor into any settlement decision.

2. Your Future Medical Needs

Another crucial factor is the likelihood of needing additional medical treatment:

• Is your injury fully healed, or will it require ongoing care?
• Might you need major medical procedures in the future?
• Could your condition worsen over time?

For instance, if you had knee surgery, your doctor might indicate you’ll eventually need a knee replacement related to your work injury. This future medical cost should be considered in any settlement.

Once you settle, the insurance carrier typically won’t pay for any further treatment, even if it’s related to your original injury.

3. Timing Considerations

Timing is critical when considering settlement:

• Early settlement is rarely advisable. If you haven’t received all necessary medical treatment, it’s difficult to know the full extent of your injury and future needs.
• Before major medical procedures. If you need surgery, it generally makes sense to have the carrier pay for that before settling.
• After maximum medical improvement (MMI). Settlement discussions usually make more sense after your doctor indicates you’ve reached maximum healing.

4. Personal Factors

Sometimes, personal circumstances influence the settlement decision:

• Are you experiencing difficulties with the workers’ compensation system?
• Are your checks consistently late?
• Do you feel you’re under surveillance?
• Do you have urgent financial needs?

While these factors may create pressure to settle, they should be weighed against the long-term implications of giving up your rights to future benefits.

The Settlement Process

If you decide that a settlement is right for you, the process typically involves:

1. Negotiation: Your attorney will negotiate with the insurance carrier based on the value of your future benefits and medical treatment.
2. Mediation: Often, a neutral third party helps facilitate settlement discussions.
3. Agreement: If both sides reach terms they can accept, a settlement agreement is drafted.
4. Approval: The North Carolina Industrial Commission must approve the settlement.
5. Payment: Once approved, you receive your lump sum payment.

A settlement document is sometimes called a “clincher,” though many attorneys prefer the term “compromise settlement agreement” as it better reflects what’s happening—a compromise between parties.

When Settlement Makes Sense

Settlement might make sense when:

• You’ve received all necessary medical treatment
• Your condition is stable and unlikely to change significantly
• You understand your future medical needs and have accounted for them
• You have realistic plans for returning to work or another source of income
• The settlement amount adequately compensates for what you’re giving up

When Settlement Doesn’t Make Sense

Settlement might not be advisable when:

• You still need significant medical treatment
• Your doctor hasn’t given a clear prognosis
• You’re about to undergo surgery or other major treatment
• The settlement offer doesn’t account for future medical needs
• You have no other reliable source of income

It’s Your Decision, But Get Informed Advice

Ultimately, whether to settle your workers’ compensation claim is your decision. It’s a personal choice, but one that should be guided by a clear understanding of:

• Your legal rights
• The true value of your claim
• The long-term implications of settlement

While we can provide information and advice, we respect that sometimes immediate needs outweigh long-term considerations. Our role is to help you make an informed decision based on your unique circumstances.

Talk to an Attorney Before Deciding

Before settling your North Carolina workers’ compensation claim, it’s crucial to understand exactly what you’re giving up and what you’re getting in return.

At Johnson & Groninger PLLC, we can help you evaluate whether settlement makes sense for your situation, and if so, work to ensure the settlement amount fairly compensates you for the rights you’re surrendering.

Contact us for a free consultation about your workers’ compensation claim and settlement options.

The information in this blog post is general in nature and should not be considered legal advice for your specific situation.