Settlement

A lump settlement is a contract between the employee and the employer to close a claim in exchange for an agreed-upon amount of compensation and medical services. Cases in which the employer denies liability or disputes the amount of compensation are often settled by lump sum settlements. By settling such cases, the employee avoids the risk of getting no compensation or less than is provided in the settlement. Unless they provide otherwise, approved settlement agreements usually close out the employee's rights to future medical benefits, vocational rehabilitation, and additional compensation, even if the employee's condition worsens.