Benefits and money
Compromise and Release vs. Stipulated Award
Most California workers' comp cases end one of two ways. A Stipulated Award ("Stips") pays your permanent disability in installments and keeps future medical care open for the injury. A Compromise and Release (C&R) pays a lump sum and usually closes your right to future medical treatment and other benefits for that injury. A workers' comp judge must approve either one.
Side by side
| Stipulated Award | Compromise and Release | |
|---|---|---|
| Payment | PD paid every two weeks based on the agreed rating (some can be paid as a lump sum by commutation) | One lump sum |
| Future medical care | Stays open, through the insurer | Usually closed; you pay future care yourself |
| Reopening | Can petition for new and further disability within 5 years of the injury | Generally final |
| Disputed claims | Requires agreement on the rating | Can settle disputed issues, even whether the injury is work-related |
| Form | Stipulations with Request for Award | Compromise and Release |
When Stips can make sense
If you'll need ongoing care (medication, injections, possible future surgery) and you're comfortable with the insurer managing it, keeping medical open can be worth more than cash today.
When a C&R can make sense
If you want to close the case, the medical needs are modest or covered by other insurance, the claim is disputed, or you plan to leave the employer, a lump sum may fit better. The insurer often pays extra to close future medical, so the question is whether that money is enough to cover your realistic future care.
What to check before signing
- Which body parts and dates of injury the agreement covers.
- Whether future medical is closed, and an honest estimate of what it would cost you.
- Medicare: if you're on Medicare or expect to be, a C&R may need to account for Medicare's interests in future care.
- Liens (medical providers, EDD) and how they'll be paid.
- Attorney fee, which the judge approves and is deducted from the PD or settlement, not from medical benefits.
- Whether you're also releasing other claims; a workers' comp C&R should be read carefully for anything outside workers' comp.
The judge's role
A workers' comp judge reviews every settlement for adequacy. Unrepresented workers usually attend a hearing where the judge makes sure they understand what they're giving up. DWC Information & Assistance officers can review a proposed settlement with an unrepresented worker before it's submitted.
We don't estimate settlement values. They depend on the medical reports, your rating, future medical needs and disputed issues.
What to do next
- Never sign a C&R the same day it's offered; take it home and read it.
- Get a written estimate of future medical costs.
- Ask an I&A officer or attorney to review it.
Sources
- Compromise and Release form (PDF)
- Stipulations with Request for Award form (PDF)
- California Labor Code §5410 (new and further disability)
- DWC fact sheet: Permanent disability benefits (PDF)
- DWC fact sheet: Rights and obligations in a claim before the WCAB (PDF)
- DWC Information & Assistance unit (free help, 1-800-736-7401)
Official sources checked November 2026. Laws and rates change; check the source for the latest version.
This guide is general information, not legal advice. Every case is different. For free help from the state, call the DWC Information & Assistance unit at 1-800-736-7401.