How Does a Workers’ Compensation Settlement Work in Ohio?

Many injured workers eventually ask whether they can settle their claim. In Ohio, a settlement is a formal process with its own rules and waiting period. Here is how it works.

Step 1: An offer and an agreement

Either side can raise settlement. The injured worker, the employer, and (for state fund employers) the BWC have to agree on the terms, including the amount and which parts of the claim are being closed. A settlement can cover one or more claims, or only part of a claim.

Step 2: The application

For a state fund employer, the parties file an application for approval of the settlement with the BWC. The settlement agreement is generally signed by both the injured worker and the employer, although there are situations where the employer’s signature is not required, such as when the employer has gone out of business in Ohio.

Step 3: The 30-day waiting period

An approved state fund settlement does not take effect until 30 days after the BWC approves it. (For a self-insured employer, the 30 days run from the date the parties sign.) During that time, any party can change their mind and withdraw consent in writing. This cooling-off period protects you if you have second thoughts.

Step 4: Industrial Commission review

A copy of the settlement goes to the Industrial Commission, where a Staff Hearing Officer reviews it. If the hearing officer finds the settlement is “clearly unfair,” it will be disapproved. Otherwise, it is approved.

Step 5: Payment, and the claim is closed

Once the waiting period passes, the settlement becomes binding and is paid. A settlement cannot be appealed. If it is a full and final settlement, you give up future benefits in that claim, including medical treatment, so the amount has to account for the care you may need down the road.

Things to think about before settling

• How much future medical treatment will you need, and who will pay for it?
• Do you receive, or expect to apply for, Social Security disability or Medicare? A settlement can affect both.
• Are there conditions not yet allowed in the claim that should be?

For more on whether settling makes sense, see Thinking about settling your workers’ comp claim? Do not sign anything before you’ve had it reviewed.

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