California workers’ compensation cases can resolve in different ways. Two common settlement structures are a Compromise and Release (C&R) and Stipulations With Request for Award. The practical difference often centers on how benefits are paid and whether future medical treatment remains open.
Compromise and Release
A C&R commonly provides an approved lump-sum payment and releases the claims administrator from future obligations covered by the agreement. Future medical care is usually part of the released liability, although the actual written agreement controls.
Stipulations With Request for Award
Stipulations commonly set an agreed permanent disability level and provide for payment of permanent disability benefits over the statutory period while preserving approved future medical treatment for the accepted industrial injury.
Quick comparison
WCAB approval matters
A release or compromise is not valid without approval by the Workers’ Compensation Appeals Board or a workers’ compensation judge. California regulations also require review of the adequacy of C&R agreements and stipulated awards.
A C&R should not be described as automatically closing “everything.” The scope depends on the injuries, parties, rights, and terms actually included in the approved agreement. But, typically, a C&R is intended to settle the claim in its entirety.