Workers’ compensation cases can be confusing. There are a lot of terms and acronyms thrown around that may not make much sense when you hear them for the first time. One of these phrases is Compromise and Release, sometimes shortened to C&R. In short, Compromise and Release is a lump sum settlement buyout of your actual (or estimated) permanent disability (PD) and estimated future medical care (FMC) you may need for your work injury in the future.

Why would a case lead to Compromise and Release?

The State of California Department of Industrial Relations website has a detailed explanation of Compromise and Release compared to Stipulations with Request for Award settlements, which involve weekly payments distributed by the administrator of your case.

A workers’ compensation case is resolved by an agreement between the injured worker and the workers’ compensation insurance company. Settlements will always be reviewed by a workers’ compensation administrative law judge to protect workers’ rights.

Are there downsides to Compromise and Release?

Compromise and Release puts more of the onus of care on the worker. When you settle your case by lump sum, you will be responsible for your medical care related to your work injury after the Judge approves the settlement. It adds an extra layer of responsibility on the worker, which may add stress for some injured workers.

Keep in mind, that Compromise & Release settlements are optional for defendants.  If a C&R settlement cannot be reached, the default settlement will be a Stipulated Award.