Lump Sum Settlements

If you have an allowed claim under Ohio's Workers’ Compensation system, the law allows all employees the opportunity to settle these claims for a "Lump Sum Settlement" (LSS) amount—if agreed to by the employee, employer, and Ohio Bureau of Workers’ Compensation.  If all three parties agree to such a settlement, the employee will receive a lump sum cash settlement in exchange for giving up any future claims to benefits for this injury.  Such benefits would include all medical bills, lost wages, or any other type of payment.

Once a settlement agreement has been negotiated, a settlement form (which is required by law) will be submitted to the Bureau of Workers’ Compensation to review and approve any such agreement. Ohio's Industrial Commission also has the authority to approve these agreements within a 30 day period.

The settlement document will lay out the exact terms of the agreement in writing. At a minimum, the agreement should include the following information and terms:

  • Agreement and Settlement Date - This will generally be the date that the BWC approved the negotiated settlement.  (The employee is not entitled to receive any additional benefits for the claim after the settlement date.  Again, this would include benefits such as coverage of medical bills, provision for lost wages, or further disability payments.  This also applies to services that were performed prior to the settlement date, but billed after the agreement was signed off on.)

  • Any and all Lump Sum Settlements are subject to any family support orders issued by the court, such as child support.

  • The BWC is also entitled to reduce the LSS in order to recover any overpayments made in the past on the claim being settled.

  • Additionally, the Bureau does not waive its subrogation rights under the claim.  For example, if the BWC is entitled to recover money from a third party, it may still claim these sums even after a settlement has been reached.

  • Finally, if the Bureau determines that there has been any fraudulent activity, they have the right to rescind the agreement and recover any sums paid out as a result of such activity.