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Lump sum settlement (LSS) benefit

An injured worker can file an application for a one-time, final Lump Sum Settlement (LSS) (or partial settlement) of their workers’ compensation claim. Partial settlements may be for medical benefits only or compensation benefits only.

The LSS is a written agreement that results in the closure of a claim, or part of a claim, as defined by the terms of the settlement agreement. In exchange for this money, the settlement forever resolves all past, present, or future medical and compensation issues and liabilities in the claim, whether known or unknown.

If the injured worker is interested in settling the claim, talk to the Claims Service Specialist (CSS) about this option or discuss it with their lawyer if they are represented by legal counsel.

Per Ohio Revised Code (ORC) 4123.65, a Lump Sum Settlement (LSS) can only be initiated by an:

  • Injured worker or their representative
  • Employer or their representative
  • BWC

The injured worker’s Managed Care Organization (MCO) is not a party to a settlement, so the MCO cannot initiate nor advise the injured worker to settle.

A LSS can be entered at an administrative level (BWC) or a court level. BWC administers and approves all claim settlements. BWC always acts in the best interest of all parties to establish a fair and equitable settlement.

The Industrial Commission of Ohio (IC) may review a settlement within 30 days following the agreement date to ensure that the settlement is fair to all parties. BWC then pays the settlement money to the injured worker.

Requesting LSS benefits

To request this benefit for the settlement of state-fund claims, the injured worker or their employer will complete the (C-240) Settlement Agreement and Application for Approval of Settlement Agreement.

If the employer is self-insuring, complete the (SI-42) Self-Insured Joint Settlement Agreement and Release form and the (SI-43) Acknowledgement of the Self-Insured Joint Settlement Agreement and Release form and submit them directly to the injured worker's employer.