There are two basic ways to settle a Workers’ Compensation case. The first is by way of Stipulations with Request for Award (Steps). The second is by way of Compromise and Release (C&R). All settlements must be reviewed and approved by a Judge at the WCAB.
With the Steps, you receive less money, but more rights. The principal reason to proceed by way of Stipulations is to receive a lifetime award of medical care for the industrial injury. If the parties agree to your rating of disability and your need for further medical care, then Stipulations (agreed facts), may be submitted to the WCAB. The WCAB will review the Stipulations and issue an Award without the need for a hearing. This option is typically recommended when the rating is not disputed, and the doctors indicate that there is a need for future medical treatment or there may be a life pension (your disability exceeds 70%).
With the Steps you do not receive a lump sum payment. However, you do retain the right to petition the court for new and further disability should your injury naturally worsen within five years of the date of your industrial injury.
The Steps are the safest, most conservative way of settling your case. If you are uncertain as to whether you want Steps or a C&R, then you should probably opt for the Steps. This is an easy, quick way to settle your case while protecting your rights. Your right to medical care is for life. If a problem with medical care develops later, then a Judge could enforce your award.
A Compromise and Release (C&R) is different from the Steps in that you receive no medical care. In exchange, you receive a lump sum payment which is more than the value of your disability. A C&R is what we call a “game over” settlement. With this option, the defendant will pay you a single lump sum and you will each go your separate ways in life. You will have no further rights against the defendant for disability monies, for the right to reopen, or for medical care. Our attorney fees and any permanent disability advances you have received will be deducted from the settlement. Sometimes the C&R will include the vocational rehabilitation benefit, but it usually does not. Learn more on our website.
A C&R is usually not an option if you have returned to work with your previous employer. A C&R is attractive because you get more money than the value of your disability (and you get it now in a lump sum), however in exchange, you give up your medical care rights. You should only consider a compromise and release if you are absolutely certain that you are willing to give up your right to medical care.
