How Value Is Determined, Settlement Types, and the Process
A lump-sum settlement can bring closure and financial certainty after a work injury—but only if it’s calculated correctly and approved under Ohio law. Below we explain (1) how claim value is determined, (2) the types of settlements available (full vs. partial/indemnity-only; administrative vs. court), and (3) the approval process and 30-day “cooling-off” period. This post complements our earlier article on timelines by focusing on valuation and settlement structure.
If questions come up as you read, you can always call the Justice Law Firm at (614) 543-1320 for quick guidance.
1) How Ohio BWC evaluates settlement value
Ohio does not use a single formula. Instead, settlements are negotiated against the projected value of the claim’s future indemnity (compensation) and future medical exposure, adjusted by probability and legal risk. The Bureau of Workers’ Compensation (BWC) policy expressly directs staff to assess “Assessing the Value of the Settlement,” “Probability Factors,” “Medical Benefits/Costs,” and “Evaluating Future Indemnity.”
Key drivers your lawyer will quantify and document:
- Future wage-loss/TTD/PTD exposure (including any scheduled loss/PPD already paid or pending).
- Future medical costs (treatment plans, likelihood of surgery, pharmacy, etc); probabilities must be weighed, not assumed.
- Medicare considerations (MSA) when the worker is a Medicare beneficiary or will likely become one.
- Subrogation/VSSR and court appeals.
- Net present value (NPV) and time-value of money.
- Arm’s-length negotiation and fairness—BWC negotiates settlements.
Unsure how these factors apply to your file? A focused phone consult can help—reach us at (614) 543-1320.
2) Settlement types you can use to tailor risk and benefits
Ohio law and BWC policy allow several structures. The right choice depends on your medical outlook and financial goals.
A. Administrative settlements
These are negotiated with BWC (state-fund claims) and require BWC approval, followed by Industrial Commission (IC) review.
Full (final) settlement. Closes compensation and medical for the settled items/claims in exchange for a lump sum. After the 30-day waiting period, it becomes binding.
Partial / Indemnity-only settlement. Resolves compensation exposure while leaving medical open (less common but available under certain circumstances).
B. Court settlements
If a claim is in court, settlements are approved by the court, then processed by BWC under defined authority thresholds and procedures.
C. Self-insured (SI) employer settlements
Self-insured settlements use SI-42 (and related IC forms) and are submitted to the Industrial Commission for approval.
Not sure whether a full or indemnity-only structure makes sense for you? We’re happy to talk it through at (614) 543-1320.
3) The approval workflow and the 30-day “cooling-off” period
Step 1: File the settlement application
For administrative settlements, the terms are set on Form C-240; for “intent to settle” in court-appeal contexts, use C-512 within the statutory window.
Step 2: BWC approval and notice to parties
BWC independently evaluates fairness and issues an approval letter if appropriate.
Step 3: 30-day waiting period (cannot be waived)
Day 1 is the day after BWC’s approval letter; any party may withdraw in writing during this period (subject to certain limits). Ongoing comp and medical suspend effective the approval date.
- If the 30th day falls on a weekend/holiday, it moves to the next business day.
- The IC must review within this same 30-day window and may disapprove only if the terms are “clearly unfair” or a “gross miscarriage of justice.” If the IC does not act, the settlement is approved by operation of law.
Step 4: Finality after 30 days
Once the 30-day period expires, settlements are final and cannot be altered; the claim cannot be re-opened for the settled items.
Employer consent limits. Ohio law restricts a state-fund employer’s ability to block settlement if the claim is out of the employer’s experience and the worker is no longer employed there.
Death during the 30 days. Any party may void for good cause; otherwise, the settlement becomes final at day 30.
If you want a second set of eyes before signing, call (614) 543-1320—we can review the draft terms and timing with you.
4) How we calculate your number (what we’ll do for you)
When the Justice Law Firm values a case, we:
- Build a medical roadmap with treating-physician input; model low/medium/high-probability futures (e.g., surgery vs. conservative care).
- Project indemnity (TTD, wage loss, PPD/PTD exposure), apply probability factors, and discount to NPV.
- Resolve compliance issues.
- Clear obstacles before filing.
- Select the right structure (full vs. indemnity-only; administrative vs. court) to match your goals and medical needs.
Prefer to talk numbers privately? A brief call to (614) 543-1320 gets you a no-cost settlement valuation.
5) Frequently asked legal checkpoints
- What if my employer won’t sign? In state-fund claims, an employer signature is required when (1) you are still employed by that employer or (2) the claim is still within the employer’s experience (i.e., impacting its premiums). If a required signature is missing, BWC will request it; if the employer does not respond, BWC will disapprove the settlement.
When can BWC proceed without the employer’s signature? In defined exceptions, for example, when BWC sends the employer a 30-day notice and receives no response and either (a) you are no longer employed by that employer and the claim no longer impacts that employer’s experience, or (b) the employer is lapsed or had no coverage for the injury date. If you are no longer employed and the claim is no longer in the employer’s experience, the employer is prohibited from denying or withdrawing consent.
If you’re unsure which category you’re in, we can check your status and experience dates—call (614) 543-1320.
- Is my settlement appealable? Administrative settlements are not appealable.
- What happens after a state-fund settlement is final? BWC processes payment and updates claim status as settled.
6) Why now—and why Justice Law Firm
Settling too early or too broadly can jeopardize care or undervalue your claim. Settling too late can leave money on the table. Our role is to quantify the right number, select the right form, and shepherd the file through BWC and the IC so it clears the legal checkpoints above.
Contact Us
If you’re considering settlement or wondering whether a prior offer was fair, don’t navigate the process alone. Call the Justice Law Firm at (614) 543-1320 to schedule a free consultation, or we invite you to complete our online contact form at any time. We’re here to help you every step of the way.