California Workers’ Comp: Compromise and Release (C&R) vs. Stipulation

An employer, administrator, or insurance company may want to settle a workerscompensation claim. Before reaching an agreement, it is important to know the difference between the two main types of workers’ comp settlement options. These options are a compromise and release (C&R) and a stipulation. Here, our Fresno workers’ compensation defense lawyersexplain the most important things you should know C&Rs and stipulations

Understanding the Two Types of WorkersCompensation Settlements

A workerscompensation claim may be settled through a compromise and release or through a stipulation. Here is a basic overview of these two types of workers’ comp settlements:

The bottom line: The key difference between a C&R and a stipulation is coverage of future medical care. With both types of settlements, an injured worker will get their disability benefits. However, with a C&R, the employer/insurer provides additional financial compensation in exchange for removing any obligation to cover future medical care

California Law: Right to Negotiate a C&R, But a Judge Must Approve of the Agreement

In California, the parties have a right to negotiate a compromise and release to resolve their claim. These settlements are often effective for both parties. In fact, the majority of workers’ comp claims are now settled through C&Rs. It is important to note that these agreements must be approved by a judge. That being said, California law does give the courts considerable flexibility to approve C&R agreements. Under Cal. Lab. Code § 5001, a compromise and release can be approved during any stage of the legal process, including during a mandatory status conference, a settlement conference, or a workerscompensation trial. A California judge can deny a C&R settlement deemed unfair to the worker.