The California Department of Industrial Relations (DIR) reports that more than 300,000 people miss time at work for a job-related injury or illness in the state each year. If you suffered a major workplace injury, you may be in a position where you are considering the settlement of your claim. There are two different types of workers’ comp settlements in California. Here, our California workers’ comp lawyer offers an overview of your options.
What is a Workers’ Comp Settlement in California?
In California, a workers’ compensation settlement is an agreement between an injured worker and their employer’s insurance company that resolves a workers’ compensation claim. Through this agreement, the injured worker receives compensation for medical expenses and lost wages due to their work-related injury or illness. The settlement can come in the form of a lump sum payment, structured payments, or some combination of both.
#1: Stipulations with Request for Award (Stip)
One option for workers’ compensation settlement in California is called a Stipulation with Request for Award (Stip). With this settlement option, the injured worker agrees to a specific amount of compensation to be paid over time. A strip essentially addresses the worker’s permanent disability benefits. It is a structured settlement through which the injured worker will receive weekly payments for a certain period. An important aspect of stip is that it allows the injured worker to reopen the case within five years if their condition worsens. Also, a stip settlement generally keeps the employer’s insurance responsible for future medical care related to the injury. Here is a summary of the key things to know:
- The injured worker typically gets weekly payments; and
- The injured worker can still get future medical needs covered.
#2: Compromise and Release (C&R)
The second option is the Compromise and Release (C&R) settlement. Unlike the stip, this option is a one-time lump sum payment. It effectively closes the case, as the injured worker releases their right to any future claims related to the injury, including future medical care. This type of settlement is generally preferred by those who want to receive a large sum upfront rather than waiting for weekly payments. However, it is critical for the injured worker to carefully assess their future needs as, in accepting a C&R, they are giving up rights to any future medical treatments or benefits regarding the injury. Here is a summary of the key things to know:
- The injured worker typically gets a single lump sum payment; and
- The injured worker usually cannot get any more medical care covered.
Get Help From a Top Fresno Workers’ Comp Attorney Today
Joseph C. Yrulegui is a tenacious and justice-driven work injury lawyer. Have questions about workers’ comp settlements? We are more than ready to help. Contact us right away to set up your fully confidential initial appointment. Our firm provides workers’ compensation representation in Fresno and all across the surrounding region.