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What Types of Workers’ Compensation Settlements Are Available in California?

The California Department of Industrial Relations (DIR) outlines two main ways to settle a workers’ comp case:

  • Stipulations with Request for an Award. The claimant and claims administrator agree on the amount of temporary or permanent disability compensation. Benefits are generally paid weekly. Claimants reach an agreement to have the claims administrator pay for medical care when necessary.
  • Compromise and Release (C&R). A negotiated amount is reached to resolve the claim, which is paid in one lump sum. The lump sum includes estimated future medical care costs, and the claims administrator no longer pays for medical care, which becomes the claimant's responsibility.

Often the amount of compensation you receive through Compromise and Release is greater than the amount paid for permanent disability received over time. However, this is not always the case and you should weigh all the factors involved when deciding on which type of settlement to pursue.

When you continue to work with the same employer, in many instances, a Compromise and Release is not an option the workers’ comp insurance company is willing to consider. Re-injury after settlement could result in the insurance company having to pay medical benefits again, which is not in the insurance company's best interests.

When considering settlement options, seek legal guidance from an experienced Orange County workers’ compensation attorney who can help you make informed decisions regarding your case.

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