The Pros and Cons of Compromise and Release
You have two options for receiving your benefits if you have sustained a work-related injury in the state of California. The first benefit is called Stipulated Findings and Award and the second is Compromise and Release.
The first benefit option allows you to request periodic reviews to determine your ongoing or enhanced need for benefits. According to the State of California, Department of Industrial Relations, Division of Workers’ Compensation, a compromise and release agreement is a settlement agreement that effectively closes all aspects of your workers’ comp claim. Through this benefit, you receive one lump payment and cannot request more, even if you end up needing more.
Advantages:
Depending on your situation, a lawyer can advise you in the best course of action to take after you have received approval of your workers’ comp claim. The advantages of compromise and release include:
A compromise and release agreement protects your future interests. If your employer or the insurer dispute the claim after you reach an agreement, you can have peace of mind that you will still receive the agreed-upon amount rather than risk receiving less or nothing in the future.
The insurer may agree to pay you more money now to avoid the risk of having to pay you even more in the future.
You will receive your benefits in one lump sum as opposed to in periodic payments over the course of several months or years.
Disadvantages:
There are a few downfalls to compromise and release agreements.
Inability to collect additional benefits should your condition worsen. Once you sign a compromise and release, your employer is released from all future liability. If the injury leads to a death in this case, your loved ones will not be able to collect benefits as a result of this release as well.
Legally binding once a judge approves it. Once a judge approves this type of agreement the judge will not set aside this type of agreement except for in select few circumstances.
Cole, Fisher, Cole, O’Keefe + Mahoney is Central California’s leading workers’ compensation and social security disability law firm. With over 30 years of successful experience, we are committed to securing maximum benefits for our clients in the Fresno, California area. Schedule a free consultation today.
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Making a false or fraudulent workers’ compensation claim is a felony subject to up to five years in prison, or a fine of up to $150,000 or double the value of the fraud, whichever is greater, or by both imprisonment and fine.