If you’ve been injured at work in Orange County or anywhere in California, one of the most important decisions you’ll face in your workers’ compensation claim is how your case will be settled. In California, there are two main types of workers’ compensation settlements: Stipulations with Request for Award and Compromise and Release. Choosing the right settlement option can significantly impact your future, so understanding the difference between the two is essential. Below, I’ll break down each option in clear terms to help you make the best decision for your workers’ compensation case.
But first, if you are being offered a settlement by the claims adjuster, please contact our office. You should not enter into a settlement without first reviewing all your options with an experienced, trustworthy workers’ compensation lawyer.
1. Stipulations with Request for Award
What is a Stipulations with Request for Award?
A Stipulations with Request for Award (commonly known as “Stips”) is a type of workers’ compensation settlement in which you and the insurance company agree on the benefits you will receive after your injury. This settlement typically covers future medical care and outlines your permanent disability benefits. Importantly, this settlement allows your case to remain open for future medical treatment related to your injury, giving you long-term security.
How does it work?
- You and the insurance company agree on the amount of permanent disability caused by your injury.
- You will continue to receive medical treatment related to the injury, paid for by the workers’ compensation insurance carrier.
- Permanent disability payments are usually made in bi-weekly installments over time.
A Stipulations with Request for Award ensures that if you need additional medical care in the future, the insurance company remains responsible for covering those expenses. This is a great option for workers in Orange County who want the peace of mind that their medical treatment will be covered long after the initial settlement.
Best for: Injured workers who prefer to keep their case open for future medical needs and who are comfortable with ongoing payments rather than receiving a large lump sum. However, if you want more control over your medical care and prefer a larger, one-time payment, a Compromise and Release may be more suitable.
2. Compromise and Release
What is a Compromise and Release?
A Compromise and Release (C&R) is a type of workers’ compensation settlement where you receive a lump sum payment in exchange for closing your workers’ compensation case entirely. This type of settlement resolves all aspects of your claim, including permanent disability and any future medical costs. Because it resolves everything, you will receive more money upfront.
How does it work?
- You and the insurance company agree on a lump sum amount that will be paid to settle your workers’ compensation claim.
- Once the settlement is approved, your case is closed, and you will no longer receive medical treatment or benefits from the workers’ compensation system.
- After receiving the lump sum payment, you take on responsibility for any future medical care related to your injury.
For workers in Orange County, Southern California, and beyond, a C&R offers immediate financial control, but you also assume the risk of covering your own medical costs in the future. This type of settlement is ideal for those who want to move on from the workers’ compensation system and receive a sum of money.
Best for: Workers who want a quick settlement and are ready to take on the responsibility of managing their future medical care independently.
Which Workers’ Compensation Settlement is Right for You?
Deciding between a Stipulations with Request for Award and a Compromise and Release depends on your individual circumstances and future needs. If you live in Orange County and expect to need ongoing medical care for your injury, a Stipulation offers the benefit of continued medical coverage. On the other hand, if you prefer financial flexibility and want to fully close your case with a lump sum payment, a C&R may be the better option.
As a dedicated workers’ compensation attorney based in Orange County, I’m here to help you through this critical decision-making process. I’ll explain the risks and benefits of each settlement type, ensuring you receive the best possible outcome for your claim.
If you have questions about your workers’ compensation case in Orange County or need guidance on which settlement option—Stipulations with Request for Award or Compromise and Release—is best for you, feel free to contact me. I’m committed to helping injured workers in Orange County and Southern California navigate the complexities of the workers’ compensation system and get the benefits they deserve.
Reach out today for a consultation!