Workers’ Compensation Settlements in Los Angeles

How Workers’ Comp Settlements Work

 There are two primary settlement structures in California: Stipulated Finding and Award and Compromise and Release. A Stipulated Finding and Award provides weekly or biweekly disability payments and continued medical treatment. A Compromise and Release closes out the case with a one-time lump sum payment, which means you will not receive ongoing medical coverage. The choice between these two depends on your long-term medical needs and financial goals.

Stipulations with Request for Award (stips)

When someone chooses this route, they agree with the claims administrator on the amount of temporary or permanent disability payments they will receive, usually in weekly installments. The administrator typically also agrees to pay for medical care if necessary.

Compromise and Release (C&R)

When a person chooses a C&R, they agree with the claims administrator on an amount to resolve their claim, usually in one lump sum. If that payment includes the estimated cost of future medical care, the administrator will no longer pay for the doctor; that becomes the injured worker’s responsibility.

If you and the administrator cannot agree on a settlement, your claim will be determined by a workers’ compensation judge. Regardless of whether or not you are represented by an attorney, it is a requirement that settlements be reviewed by a workers’ compensation administrative law judge to determine whether they are acceptable. No matter what path you choose to take regarding settlement, it is best to have a Los Angeles workers’ compensation attorney by your side.

Factors Influencing Your Settlement Amount

Several issues determine the value of your settlement. These include the severity of your injury, your disability rating, whether you can return to work, the wages you earned before your injury, and the estimated cost of future medical treatment. Insurance companies will often attempt to minimize the payout, which makes it essential to have an attorney calculate the true value of your claim.

Steps to Settle Your Case

The settlement process begins with filing your workers’ compensation claim and undergoing medical evaluations. Your attorney will then negotiate with the insurance company based on medical reports and wage information. Once an agreement is reached, the proposed settlement is submitted for approval by a workers’ compensation judge. After approval, you will begin receiving payments or your lump sum, depending on the type of settlement.

Considerations for a Settlement

When deciding whether to settle, you should carefully weigh several factors. Early resolution can provide faster access to funds, but it may also limit your ability to reopen your case if your condition worsens. Choosing a lump sum means you control your treatment decisions but also assume responsibility for all future medical costs. Legal advice is critical at this stage to ensure you understand the long-term implications of your choice.

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