If you have a Permanent Disability (PD) caused by a work-related injury or illness, the State of California has two types of settlements that you may receive, known as “Stipulations with Request for Award” and “Compromise and Release”.

Stipulations with Request for Award

If a workers’ compensation case goes to a hearing, the judge may rule for a Stipulation with Request for Award. This type of settlement will usually require payment of a specified weekly benefit for a specified number of weeks. This agreement settles the extent and level of Permanent Disability, but leaves open future medical care provisions.

Compromise and Release

The second type of settlement is known as a Compromise and Release. Under this settlement, the employee agrees to accept a lump sum of money to resolve the workers’ compensation claim. That payment settles the entire aspect of the claim – Permanent Disability, Temporary Disability, and all future medical care costs. In other words, there will be no future payment of benefits and the insurance company will have no obligation to pay for future medical care costs.