If you’ve been receiving workers’ compensation benefits in North Carolina, your employer’s insurer may eventually offer a settlement to close your claim. One common way to resolve a workers’ comp case is through what’s known as a clincher agreement.
Before you sign this agreement, you need to understand what it does, what rights you may be giving up, and why the decision deserves your careful consideration before you accept the proposed terms.
Defining Clincher Agreement
A North Carolina clincher agreement, or a compromise settlement agreement, is a full and final settlement of a workers’ comp claim. Instead of continuing to receive benefits over time, an injured worker agrees to accept a negotiated settlement amount in exchange for closing the claim.
The parties put the agreement in writing and sign it. Once it’s approved, the workers’ compensation case is resolved, and the employer and their insurer are released from further responsibility to the worker.
How Does a Clincher Agreement Work in North Carolina?
Once an injured worker’s medical condition has stabilized enough for the parties to evaluate the potential future costs of the claim, the worker’s employer or its insurer may want to resolve the claim once and for all rather than continue paying workers’ comp benefits. In this situation, the employer or its insurer may offer the injured worker a clincher agreement.
In addition to resolving the claim, the agreement can provide the worker with a negotiated lump sum settlement that replaces future benefit payments. In theory, the amount of the lump sum payment should reflect factors like the worker’s disability, any future medical treatment they may require, and whether they’re able to return to work.
A workers’ compensation clincher agreement puts an end to the uncertainty that may come with continuing a claim, appealing to the injured worker, their employer, and the insurance company alike. However, it can come with some significant drawbacks.
What Benefits Do You Give Up When You Sign a Clincher?
A clincher agreement is considered final. If you sign one, you generally give up your right to receive additional workers’ comp benefits for the covered injury, even if you experience worsening symptoms.
Depending on the agreement, this may mean forgoing benefits such as:
- Future medical care, including treatment, prescriptions, rehabilitation, and related expenses
- Temporary disability benefits if you remain unable to work or earn your prior wages
- Permanent disability benefits connected to lasting impairment or loss of earning capacity
- Additional benefits if your condition worsens after the settlement
Does the North Carolina Industrial Commission Have to Approve a Clincher Agreement?
The clincher agreement doesn’t go into effect simply because the parties signed it. Under N.C.G.S. § 97-17, the North Carolina Industrial Commission (NCIC) must review and approve any settlement agreement proposed to settle a workers’ compensation claim.
When reviewing a clincher agreement, the Commission will evaluate whether it’s fair, just, and in both parties’ best interests. It will also verify whether the agreement contains required provisions, including language indicating that the employee is knowingly giving up the right to further workers’ comp benefits for that injury (11 NCAC 23A .0502).
Can You Reject a Clincher Agreement?
Clincher agreements are entirely voluntary. You don’t have to accept an agreement just because your employer or its insurer has offered it. You may either reject the offer outright or respond with a counteroffer, which may involve different terms or a higher settlement amount.
If you’ve been offered a settlement but can’t reach an agreement with your employer and its insurer, your workers’ comp claim remains open and can proceed as normal. However, your employer or its workers’ compensation insurance company may choose to formally dispute your benefits. If you receive notice that the insurer is seeking to end your benefits, contact an experienced attorney right away.
What Should You Review Before Signing a Clincher Agreement?
Given what’s at stake, it’s important to take time to fully review and consider a clincher agreement before signing it. We strongly advise consulting a workers’ comp attorney to avoid walking away with less than you are owed.
You and your attorney must weigh whether the proposed settlement adequately accounts for the benefits you might otherwise receive in the future. Keep the following factors in mind:
- Your current medical condition – Consider whether you’ve reached maximum medical improvement, where additional treatment won’t improve your condition, or if you may still need significant care.
- Your future medical expenses – Estimate the likely cost of surgeries, therapy, medications, assistive devices, and follow-up care.
- Your ability to work – Think about whether your injury may limit your earning capacity or prevent you from returning to work.
- The settlement amount – Compare the offer with the potential value of future disability and medical benefits.
- Any outstanding expenses – Make sure unpaid medical bills and other claim-related costs are addressed appropriately.
You don’t have to weigh your options alone. Our knowledgeable workers’ compensation attorneys can help you analyze the proposed terms, identify any potential risks, and demand full and fair compensation.
Contact Our Workers’ Compensation Attorneys in Raleigh, NC for Help
If you’ve been offered an NC workers’ compensation settlement, you need skilled legal guidance to ensure you aren’t signing away crucial benefits.
At Younce, Vtipil, Baznik & Banks, we offer over 100 years of combined legal experience and extensive knowledge of North Carolina’s workers’ compensation system. That’s highlighted by our track record of successful outcomes in complex workplace injury cases, including:
- $3.336 million settlement in a workplace wrongful death case arising from a construction accident
- $2.625 million workers’ comp settlement for a client injured in a construction accident
- $600,000 recovery after a denied workers’ comp claim for a framer paralyzed by a fall*
Our firm takes pride in offering a highly personalized experience to every client. We bring compassion and honesty to each client interaction, and our state-of-the-art case tracking system makes it easy for our team to stay on top of every detail of your claim. Our staff members are fluent in both English and Spanish and strive to make quality legal representation available to all injured North Carolina workers.
As one client wrote of her experience with us:
“I don’t know how to begin to thank you for all of the hard work you did on my workers’ compensation case. From day one you had this ease about you. I was able to relax knowing that my legal situation was being handled. If at anytime I or anyone I know need legal counsel, I will be sure to contact your firm.” – Monique S.
When you turn to Younce, Vtipil, Baznik & Banks for support with your workers’ comp claim, you’ll be treated with the care and respect you deserve from the outset. This starts with the free initial consultation – always with a licensed North Carolina attorney, not an intake worker – and continues through the resolution of your case.
Reach out right away to get started.
*Each case is unique, and past results do not guarantee future outcomes.
