What Is a Compromise and Release (C&R) in a California Workers’ Compensation Case?
A Compromise and Release (C&R) is a type of settlement agreement used in California workers’ compensation cases. When an injured worker and the insurance company agree to resolve the claim, a C&R allows the injured worker to receive a lump-sum payment in exchange for closing the case permanently.
This includes giving up the right to future payments and, in most cases, future medical care for the injury.
What Does a C&R Cover?
A Compromise and Release typically includes a lump-sum settlement that covers:
- Permanent disability compensation
- Unpaid temporary disability benefits, if any
- Future medical treatment related to the injury
Once the agreement is approved, the insurance company has no further obligation to pay for medical care or disability benefits related to the injury.
When Is a C&R Used?
A C&R may be appropriate if:
- The injured worker wants to resolve the case quickly and avoid further delays or disputes
- The worker no longer wants to receive ongoing treatment through workers’ compensation
- The insurance company offers a reasonable lump sum that reflects the value of future benefits
It is not required to settle a case through a C&R. Some injured workers choose to keep their claim open and continue receiving medical care and benefits through a stipulated award instead.
Pros and Cons of a C&R
Pros:
- Lump-sum payment can be used for medical care, living expenses, or retraining
- No more dealing with the insurance company or utilization review delays
- Can provide financial flexibility and closure
Cons:
- Ends the right to future medical treatment through workers’ compensation
- Difficult to reopen the case later
- Risk of under-settling the claim without legal guidance
Do You Need a Judge’s Approval for a C&R?
Yes. A workers’ compensation judge must review and approve the Compromise and Release to ensure it is fair and in the injured worker’s best interest. If the worker is not represented by an attorney, the judge will carefully review the terms before approval.
Get Help Before Signing a C&R
Once a Compromise and Release is approved, your case is closed. For this reason, it is important to fully understand the value of your claim and what rights you are giving up. The Law Offices of Norman J. Homen can review the proposed settlement, explain your options, and negotiate on your behalf.
