I'm actually dealing with that issue currently. I appealed my settlement from the state worker's comp and am awaiting their answer. You really have nothing to lose by appealing and that's probably the easiest first step.
Suing can be time consuming and costly, depending on the outcome but it may be worth it if you can obtain a figure that's more likely to provide for the cost of any issues caused by the surgery or original injury which pop up down the road. Incidentally, my settlement was almost that exact same amount and I've had two surgeries on my knee. I can't imagine that $2000 will cover the problems I'll likely have 15-20 years down the road from deterioration because of the surgery. I, in no way, think a huge sum is appropriate in my case but would like something a little more realistic.
I don't know what the laws are in California but here, my claim will automatically be closed out in 7 years, unless I re-injure myself or can say that it's worsening so, maybe that's the case there?
Good luck to you guys, it's a difficult decision to make! Hopefully someone on here is in one of these fields and can offer some better advice!