Workers’ Compensation: Stipulation or Compromise and Release

• Mar 29, 2021
• Blog
• Michael Burgis & Associates, P.C

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In a workers’ compensation case, the injured party is entitled to compensation by the company they worked for at the time of the injury. There are essentially two ways that a workers’ compensation case can settle. One is called stipulation and the other is called compromise and release, or C&R. There are benefits and drawbacks to each type of settlement. Your injury and the possibility of future medical needs and loss of income will weigh into the decision on which type of settlement is the best option for you.

At Michael Burgis & Associates, PC, we work with our clients to carefully examine their case and individual needs to determine the best possible course of action for their case.

What Is a Stipulation Settlement?

Under a stipulation settlement, the injured worker is stipulating legally what the industrial injuries are. This stipulation includes what type of injury, what body parts are impacted, and what the level of permanent disability is. Under a stipulation settlement, your future medical coverage and needs are left open. This means that you’ll have access to medical coverage if future medical needs arise.

Stipulation settlements are not paid in a lump sum. In these cases, the compensation is paid out on a schedule, often weekly. The amount you are to be paid through compensation will be set by the state. It also locks in a lifetime of medical coverage based on the injury.

What Is a Compromise and Release (C&R) Settlement?

In a C&R settlement, the employer or insurance company is making one lump settlement. It’s called a compromise and release because once you’ve agreed to the terms of the settlement, you’re releasing the employer from any responsibility for future medical treatment or further damages. In essence, you’re agreeing that the lump sum is adequate for the entirety of your injury, wage losses, and any disability and relinquishing any right to seek further compensation in the future.

A judge can never order that a case be settled by C&R. Only the two parties can agree to this type of settlement. A C&R is paid in a lump sum, so the injured party will get the full payout when the case is settled.

Do You Need a Workers’ Compensation Attorney for Your Case?

At Michael Burgis & Associates, PC, we work with both stipulation settlements and C&R settlements. As certified workers’ compensation attorneys, we can educate you on the costs and benefits of each settlement option so that you fully understand your legal rights. It’s always the client’s choice as to which path we follow. Our goal is to give you the benefit of all the legal knowledge you need to make the best decisions for your family.

Contact us today if you’d like to put the team at Michael Burgis & Associates to work for you.