Types Of Workers Compensation Settlements Negotiated By An Orange County Workers’ Compensation Lawyer

As a top Orange County workers’ compensation lawyer, Thomas F. Martin, PLC explains the main  types of settlement formats options in workers’ comp law:

1. Stipulated Findings and Award

This type of settlement is an option when an injured worker and the employer (or its insurance company) agree on the permanent disability rating and need for future medical treatment. The stipulation is the parties’ agreement about the findings of the case. These findings include the disability rating percentage, the fact that a work injury caused the disability, and the need for future medical care.

When the settlement paperwork is presented to a workers’ compensation judge, the agreement will have the same force and effect as if the Judge made the findings after a trial. In most cases, after obtaining the medical reporting and other evidence, the parties are often able to agree on what the Award should be.

A Stipulated Findings and Award settlement will require the insurance company to make a payment to the injured worker every two weeks for a specified period of time depending on the percentage of permanent disability. Sometimes, if the insurance company has not paid the permanent disability owed, a lump sum payment be paid to the injured worker to catch up on the payments owed according to the agreement.  

This settlement is common in cases when an injured worker continues to work for the same employer.

2. Compromise and Release

An Orange County workers’ compensation lawyer may negotiate a Compromise and Release if the injured worker wants to close out all rights in the case, including the right to request future medical treatment. In these cases, the injured worker accepts a lump sum of money to settle the worker’s compensation claim and close the case forever.

The workers’ compensation judge must still review approve the Compromise and Release to ensure it’s fair. Most Compromise and Release settlement agreements are approved if the worker has an experienced Orange County workers’ compensation lawyer representing them.

One advantage of this type of settlement is the immediacy of payment. Workers don’t need to wait for installments payments but receive the full payment. In many cases, clients receive a more favorable financial payment since insurance companies prefer not to be under any future obligation.

3. Hybrid settlement

An experienced Orange County workers’ compensation lawyer may be able to negotiate a Compromise and Release ( closing out all rights for a lump sum) AND have future medical care left open in certain cases.