Understanding the Two Types of Workers’ Compensation Settlements in California

California law requires all businesses and organizations that operate within the state to carry no-fault workerscompensation coverage (Labor Code § 3700). If you are hurt on the job in Fresno, you have the right to file a workers’ comp claim to seek medical coverage and wage loss benefits

Following a serious workplace accident, your workers’ comp claim may eventually be settled. Not all workers’ comp settlements are the same. In this blog post, our Fresno workers’ compensation attorney provides a guide to the two different types of workers’ comp settlements in California

Workers’ Comp Settlement Option #1: Stipulations With Request for Award (Stip) 

The first type of workerscompensation settlement in California is called a Stipulation with Request for Award (Stip). Indeed, a workers’ comp claim settled through a stipulation will result in: 

The key thing to understand about a stipulated workers’ comp settlement is that it effectively leaves your future medical care “open.”

Workers’ Comp Settlement Option #2: Compromise and Release (C&R)

The second type of workerscompensation settlement in California is called a Compromise and Release (C&R). You may hear this referred to as a full settlement. When a workers’ comp claim is settled through a C&R, the result is: 

  • Payment for all temporary and permanent disability benefits—generally as a single lump sum award; and
  • Payment of an additional lump sum to cover future anticipated medical care—thereby releasing the insurer of liability

With a C&R, the insurer is no longer liable for any future medical care. The lump sum payment for medical care will “pre-pay” for those costs and any future medical treatment related to the workplace accident will become the responsibility of the work

A California Work Injury Attorney Will Help You Reach a Favorable Settlement

Workerscompensation claims are complex—especially if you sustained a serious injury while on the job. Unfortunately, injured workers cannot rely on claims administrators or insurance companies to protect their best interests. Before you settle a workerscompensation claim in California, it is crucial that you understand the specific terms of the agreement. An experienced Fresno, CA workers’ comp lawyer will make sure that any settlement is in your best interests, whether that means resolving your case through a Stip or through a C&R

Contact Our Fresno Workers’ Comp Lawyer for Immediate Help

Joseph C. Yrulegui is an experienced work injury attorney. If you have any questions about workers’ comp settlement, Mr. Yrulegui is ready to protect your rights. A stipulated award or a C&R may be advisable, depending on your specific circumstances. Give us a call now or contact us to arrange your free, no commitment workers’ comp consultation. We represent injured employees in Fresno, Fresno County, and throughout all of Central California