The Workers’ Compensation system
is a limited benefits system that can extend for months, or even years, before
any discussions of settlement occur. Before settlement discussions, a doctor
must determine that an “applicant” is permanent and stationary, meaning he or
she is not expected to get better or worse within the next year. An applicant
is the party that opens a case at the local Workers’ Compensation Appeals Board
by filling out an application for adjudication of claim after they suffer a
work-related injury. Once an applicant is permanent and stationary, a large
percentage of Workers’ Compensation claims are settled by Stipulations with
Request for Award or by a Compromise and Release.
Stipulations with Request for Award
Stipulations with Request for
Award is a settlement that occurs when the parties agree to all the issues,
resulting in an award of permanent disability and future medical care. An award for future medical care is appealing
to many applicants because it is a way of avoiding having to pay ongoing, out-of-pocket
medical expenses for a work-related injury. Settling by way of Stipulations
with Request for Award is also beneficial in that an applicant may petition to
reopen their Workers’ Compensation claim within five years from the date of
injury in case of a new or further disability or an increase in the disability
of the original injury.
Award is a settlement that occurs when the parties agree to all the issues,
resulting in an award of permanent disability and future medical care. An award for future medical care is appealing
to many applicants because it is a way of avoiding having to pay ongoing, out-of-pocket
medical expenses for a work-related injury. Settling by way of Stipulations
with Request for Award is also beneficial in that an applicant may petition to
reopen their Workers’ Compensation claim within five years from the date of
injury in case of a new or further disability or an increase in the disability
of the original injury.
When drafting a Stipulation with Request
for Award, certain information is required, including the date of the accident,
the nature and extent of the applicant’s disability, the amount paid or due on
account of compensation, and the duration of any further payment. A settlement award must also account for any
lien claimants. Any third party that may
have provided benefits to an applicant that should have been provided by the Workers’
Compensation system has a right to a lien on a settlement award.
for Award, certain information is required, including the date of the accident,
the nature and extent of the applicant’s disability, the amount paid or due on
account of compensation, and the duration of any further payment. A settlement award must also account for any
lien claimants. Any third party that may
have provided benefits to an applicant that should have been provided by the Workers’
Compensation system has a right to a lien on a settlement award.
Once the stipulations
settlement is drafted, the parties will meet with a Workers’ Compensation judge
in a walk-through process to finalize the process of getting the settlement
agreement approved. If the settlement
terms are found to be consistent with medical records and evidence, a Workers’
Compensation judge will approve the stipulation, making the agreement binding
on the parties. A Workers’ Compensation judge will also review a settlement to
ensure that the defendants are given credit against a settlement award if
disability compensation was advanced to the applicant.
settlement is drafted, the parties will meet with a Workers’ Compensation judge
in a walk-through process to finalize the process of getting the settlement
agreement approved. If the settlement
terms are found to be consistent with medical records and evidence, a Workers’
Compensation judge will approve the stipulation, making the agreement binding
on the parties. A Workers’ Compensation judge will also review a settlement to
ensure that the defendants are given credit against a settlement award if
disability compensation was advanced to the applicant.
Compromise and Release
A Compromise and Release is a
settlement that terminates an employer’s liability for a work-related injury in
exchange for a lump sum paid to the applicant.
Unlike a Stipulation with Request for Award, a Compromise and Release usually
does not provide future medical benefits.
However, both types of settlements have virtually the same filing and
format requirements and both must be accompanied by the same information
regarding adequacy of award and proof of service on any and all lien claimants.
(See LC §5003).
settlement that terminates an employer’s liability for a work-related injury in
exchange for a lump sum paid to the applicant.
Unlike a Stipulation with Request for Award, a Compromise and Release usually
does not provide future medical benefits.
However, both types of settlements have virtually the same filing and
format requirements and both must be accompanied by the same information
regarding adequacy of award and proof of service on any and all lien claimants.
(See LC §5003).
The terms of a Compromise and
Release are listed in the settlement. The agreement must be witnessed by two
disinterested witnesses or by a notary public.
A Compromise and Release must also be signed by all attorneys prior to
being presented to a Workers’ Compensation judge for approval. A signed Compromise
and Release is then presented to a Workers’ Compensation judge for review of
adequacy of benefits being awarded to the applicant. (See LC §5001).
Release are listed in the settlement. The agreement must be witnessed by two
disinterested witnesses or by a notary public.
A Compromise and Release must also be signed by all attorneys prior to
being presented to a Workers’ Compensation judge for approval. A signed Compromise
and Release is then presented to a Workers’ Compensation judge for review of
adequacy of benefits being awarded to the applicant. (See LC §5001).
Signing away the right to future
medical benefits is a serious decision, so a Workers’ Compensation judge will
want to ensure that an applicant understands that they will bear the costs to
treat their injury once the settlement is approved. When an applicant has
representation, he or she is protected by their attorney who will ensure that
an informed decision is made and ensure that the settlement is adequate for
purposes of a Workers’ Compensation judge’s approval. An unrepresented applicant has no such
advocate therefore their settlements typically receive greater scrutiny by the
judge, which can cause settlement proceedings to be delayed. However, a Workers’ Compensation judge will generally
find a Compromise and Release adequate and order approval if the settlement
amount is supported by medical reports and other evidence.
medical benefits is a serious decision, so a Workers’ Compensation judge will
want to ensure that an applicant understands that they will bear the costs to
treat their injury once the settlement is approved. When an applicant has
representation, he or she is protected by their attorney who will ensure that
an informed decision is made and ensure that the settlement is adequate for
purposes of a Workers’ Compensation judge’s approval. An unrepresented applicant has no such
advocate therefore their settlements typically receive greater scrutiny by the
judge, which can cause settlement proceedings to be delayed. However, a Workers’ Compensation judge will generally
find a Compromise and Release adequate and order approval if the settlement
amount is supported by medical reports and other evidence.
Of course, each individual case
will have its own set of facts, which will dictate what options an applicant
may have. The above explanation is a
broad overlook of what the two main types of settlements look like under the Workers’
Compensation system but the information is not exhaustive.
will have its own set of facts, which will dictate what options an applicant
may have. The above explanation is a
broad overlook of what the two main types of settlements look like under the Workers’
Compensation system but the information is not exhaustive.
The Workers’ Compensation system can
be confusing and an applicant may not understand his or her rights after they
are injured on the job. A beneficial
solution to getting questions answered is to obtain a Workers’ Compensation
attorney. A Workers’ Compensation
attorney knows the labor code and can help navigate through the Workers’
Compensation system and explain in plain terms what the process is for settling
a worker’s compensation claim.
be confusing and an applicant may not understand his or her rights after they
are injured on the job. A beneficial
solution to getting questions answered is to obtain a Workers’ Compensation
attorney. A Workers’ Compensation
attorney knows the labor code and can help navigate through the Workers’
Compensation system and explain in plain terms what the process is for settling
a worker’s compensation claim.
Mastagni Holstedt, A.P.C. is the
largest firm in Northern California that represents applicants and offers a complimentary
consultation to those seeking representation.
If you have been injured at work and want to discuss your case and the
possibility of representation, please call our office at 916-446-4692 to set up
an appointment with a Workers’ Compensation attorney.
largest firm in Northern California that represents applicants and offers a complimentary
consultation to those seeking representation.
If you have been injured at work and want to discuss your case and the
possibility of representation, please call our office at 916-446-4692 to set up
an appointment with a Workers’ Compensation attorney.
