In this guide11 sections
- Key takeaways
- What a stipulated award is
- Judge approval and the 2026 en banc decision
- How PD payments work under a stipulated award
- A hypothetical example
- Future medical care
- The job displacement voucher and the $5,000 supplement
- Lump sums and reopening
- Stipulated award or compromise and release?
- Frequently asked questions
- Talk to a California workers’ comp lawyer
A stipulated award is a way to settle a California workers’ comp case in which you and the insurer agree on your permanent disability (PD) rating, and a workers’ comp judge approves it as an award. You receive PD payments every two weeks, future medical care for the accepted injury usually stays open, and you can generally ask to reopen the case if your condition worsens within five years of the date of injury. It is the main alternative to a compromise and release, which is a lump-sum buyout.
Key takeaways
- A stipulated award becomes binding only after a workers’ comp judge approves it (Labor Code §5001). A June 2026 en banc decision confirmed that the judge must decide whether the agreement is valid and adequate.
- For injuries on or after January 1, 2014, PD is paid at $160 to $290 a week. A 20% rating is 75.5 weeks, or $12,080 to $21,895.
- Future medical care for the accepted injury usually stays open for life, subject to utilization review.
- You can generally petition to reopen for new and further disability within five years of the date of injury, not the date of the award (Labor Code §5410).
- If you have permanent partial disability from an injury on or after January 1, 2013 and aren’t offered qualifying work, you may also get a job displacement voucher worth up to $6,000.
What a stipulated award is
“Stipulations with Request for Award” is the formal name. Most are signed after your doctor or a QME finds you permanent and stationary and your PD rating is known. The Division of Workers’ Compensation’s Fact Sheet D describes three ways a case usually ends: a stipulated award, which pays money over time and includes future medical care; a compromise and release; or findings and award after a trial.
A typical stipulated award lists the date of injury, employer, accepted body parts, your earnings, temporary disability already paid, the PD rating and any credit for PD advances, whether future medical care is awarded, and the attorney’s fee, which the appeals board must find reasonable (Labor Code §4906).
Judge approval and the 2026 en banc decision
No workers’ comp settlement is valid until a judge or the appeals board approves it (Labor Code §5001). In June 2026, the Workers’ Compensation Appeals Board issued an en banc decision holding that a settlement is enforceable only after approval, and that the judge must consider whether it is valid and decide whether it is adequate. If the information is insufficient, the judge may issue an order suspending action and, if needed, hold a hearing to build a record. The Board also stressed that the parties must get notice and a chance to be heard before such orders issue.
How PD payments work under a stipulated award
PD is generally two-thirds of your average weekly earnings, within limits. For injuries on or after January 1, 2014, the weekly rate for ratings under 100% is $160 to $290 (Labor Code §§4453, 4658). The first PD payment is generally due within 14 days after your last temporary disability payment, payments continue every two weeks, and a late payment is generally increased by 10% (Labor Code §4650).
| PD rating | Weeks | Total at $160/week | Total at $290/week |
|---|---|---|---|
| 5% | 15 | $2,400 | $4,350 |
| 10% | 30.25 | $4,840 | $8,772.50 |
| 20% | 75.5 | $12,080 | $21,895 |
| 30% | 131 | $20,960 | $37,990 |
| 40% | 201 | $32,160 | $58,290 |
| 50% | 271.25 | $43,400 | $78,662.50 |
Ratings of 70% or more also include a life pension, and a 100% rating is paid for life (Labor Code §4659). To see how a rating is built, read our guide to what a permanent disability rating is worth.
A hypothetical example
Maria earned $600 a week when she was hurt in 2024. Two-thirds of that is $400, which is above the $290 maximum, so her PD rate is $290. Her stipulated award is for a 20% rating: 75.5 weeks × $290 = $21,895. The insurer already paid 20 weeks of PD advances ($5,800), so the remaining 55.5 weeks, $16,095, is paid at $580 every two weeks. Her award also includes future medical care for her back.
Future medical care
A stipulated award usually leaves future medical care open for the accepted injury. Your doctor still requests treatment through the normal process, and requests go through utilization review and, if denied, Independent Medical Review. An insurer may later offer to buy out your future medical care with a separate compromise and release. You don’t have to accept, and any buyout also needs a judge’s approval. If you are on or near Medicare, see our Medicare set-aside guide before agreeing to any buyout.
The job displacement voucher and the $5,000 supplement
If your injury was on or after January 1, 2013, you have permanent partial disability, and your employer doesn’t offer regular, modified or alternative work lasting at least 12 months within 60 days after the claims administrator receives the permanent and stationary report, you may receive a Supplemental Job Displacement Benefit voucher worth up to $6,000 (Labor Code §4658.7).
- Uses: tuition at an approved school, licensing and certification fees, tools, up to $1,000 for a computer, and limited job placement and counseling services.
- Expiration: two years after it is furnished or five years after the injury, whichever is later.
- Can’t be settled away: the voucher can’t be settled or commuted in a settlement.
Voucher recipients may also qualify for a one-time $5,000 payment from the Return-to-Work Supplement Program. You must apply within one year from the date the voucher was served. More in our job displacement voucher guide.
Lump sums and reopening
Getting a lump sum. PD under a stipulated award is normally paid over time. The appeals board may commute some or all remaining payments into a lump sum in limited situations, such as when a lump sum is necessary to protect you or clearly serves your interests, considering your finances and whether you can live without the regular payments (Labor Code §5100). A commuted amount is discounted to present value (Labor Code §5101).
Reopening. If your condition gets worse, you can petition for new and further disability within five years of the date of injury (Labor Code §§5410, 5803). The clock runs from the injury, not the award. After five years, an existing award of future medical care continues, but the right to reopen for new and further disability ends.
Stipulated award or compromise and release?
| Stipulated award | Compromise and release | |
|---|---|---|
| How you’re paid | PD every two weeks | One lump sum |
| Future medical | Usually stays open | Usually closed |
| Reopening | Within 5 years of the injury | Generally no |
| Judge approval | Required | Required |
| Often fits | Workers who expect more treatment | Workers who want a clean break |
For a side-by-side guide, see how to settle your workers’ comp case, and before you sign anything, read should I accept my workers’ comp settlement offer?
Frequently asked questions
How long will I receive payments?
For the number of weeks tied to your PD rating, at your weekly rate, minus any weeks already paid as advances. A 20% rating, for example, is 75.5 weeks. Ratings of 70% or more add a life pension.
Can I get my stipulated award as a lump sum?
Only in limited situations. The appeals board may commute remaining payments under Labor Code §5100, and the lump sum is discounted to present value.
Will my future surgery be covered?
If your award includes future medical care for that body part, the request goes through the normal approval process, including utilization review. Coverage depends on medical necessity, not on a new settlement.
Can a stipulated award later be converted into a compromise and release?
Yes, if both sides agree and a judge approves it. This usually comes up when an insurer offers to buy out future medical care.
What if my condition gets worse?
You can generally petition to reopen for new and further disability within five years of the date of injury. Talk to a lawyer well before that deadline.
Talk to a California workers’ comp lawyer
Employees First Labor Law represents workers exclusively, including injured workers deciding how to settle. We offer free virtual consultations to review your rating, your proposed stipulations and your options. Contact us online or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
