Labor Code §§5000–5005 – Compromise and Release

California Labor Code sections 5000 to 5005 let you settle a workers’ compensation claim with a compromise and release (C&R), but no release or compromise agreement is valid until the Workers’ Compensation Appeals Board (WCAB) or a workers’ compensation judge approves it. The same sections spell out what the written agreement must say, how you must sign it, and how a cumulative trauma claim can be settled with one employer at a time.

In practice, a C&R trades your right to future benefits on the settled injuries for one lump-sum payment, and it usually closes your claim for future medical care too. This page is a statute guide. If you are deciding between a C&R and a stipulated award, our guide to compromise and release vs. stipulated award compares the two side by side.

What Labor Code §§5000–5005 say

These sections sit in Chapter 2, “Compromise and Release,” of the part of the Labor Code that governs workers’ comp claims. Here is a plain-English summary.

Section	What it says (paraphrased)
§5000	No contract, rule or regulation can exempt an employer from paying workers’ comp. But the parties can compromise a claimed liability, and dependents get no interest the employee can’t release by compromise.
§5001	No release of liability or compromise agreement is valid unless the appeals board or a judge approves it.
§5002	A copy signed by both sides must be filed with the appeals board “forthwith.” Once it is filed and approved, the board may issue an award based on it.
§5003	The agreement must be in writing, your signature must be witnessed by two disinterested people or acknowledged before a notary, and it must state six key facts.
§5004	In a death case, the agreement must also list the date of death, the dependents and the death benefit.
§5005	In a cumulative injury or occupational disease case, you can settle with one employer or insurer for its share and keep pursuing the others.

Key fact

Who these sections cover

The rules apply to every California workers’ comp claim that is settled by compromise: the injured worker, the employer and its insurer or claims administrator, and, in a death case, the worker’s dependents. Lien claimants are affected too, because certain liens must be accounted for in the agreement.

The statute uses the old word “referee.” Labor Code §27 says references to a workers’ compensation judge or referee mean a workers’ compensation administrative law judge. And the approval requirement protects you whether or not you have a lawyer: the WCAB’s own rules require it to look at the adequacy of every C&R.

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The rules, section by section

§5000: you can compromise, but you can’t sign away coverage

Section 5000 opens by saying no contract, rule or regulation can exempt your employer from liability for workers’ comp. So a contract that tries to waive your workers’ comp rights, such as paperwork signed when you were hired, doesn’t exempt your employer. What the law allows is a compromise of a claimed liability, subject to the chapter’s rules. Subdivision (b) adds that dependents get no interest the employee can’t release by compromise. In line with this, the standard C&R form says that, unless it states otherwise, approval releases your dependents’ claims to death benefits for the injuries it covers.

§5001: approval is what makes it binding

The key sentence is short: “No release of liability or compromise agreement is valid unless it is approved by the appeals board or referee.” Signing alone settles nothing; the C&R form says the release takes effect only after approval and payment.

§5002: filing and the award

A copy signed by both parties must be filed with the appeals board right away. After filing and approval, the board may issue an award based on the agreement, on its own or at either side’s request, without notice. WCAB Rule 10700 adds the procedure. The parties must file the medical reports that bear on adequacy. The judge must examine whether the settlement is adequate and may set a hearing first. An agreement that pays less than the full compensation due and releases all future liability is approved only when there is reasonable doubt about the parties’ rights or approval is in their best interests.

§5003: what the agreement must say

The agreement must be in writing and “duly executed,” with your signature attested by two disinterested witnesses or acknowledged before a notary public. It must state:

• the date of the accident;
• your average weekly wages;
• the nature of the disability: total or partial, permanent or temporary;
• the amount paid, or due and unpaid, up to the date of the agreement, and the amount of any future payments;
• how long those payments will continue; and
• if an EDD disability or unemployment benefits lien under Labor Code §4903(f) or (g) has been filed, the number of days and amount of temporary disability allowed to that lien claimant.

The current state form for a C&R, DWC-CA form 10214(c), also requires every body part and date of injury to be listed. Body parts can’t be pulled in by reference to medical reports.

§5004: extra items in a death case

When a worker has died, the agreement must also state the date of death, the name of the surviving spouse (the statute says “widow”), the names and ages of all children, the names of all other dependents, whether they are total or partial dependents, and the death benefit and who receives it. A separate state form is used for these dependency settlements. Our page on Labor Code §§4700–4703 explains the death benefit itself.

§5005: settling a cumulative trauma claim one employer at a time

For occupational disease and cumulative trauma claims, Labor Code §5500.5 can make several employers liable. For claims filed on or after January 1, 1981, liability is generally limited to employers who employed you during the year before the date of injury or the last date you worked in an occupation exposing you to the hazard, whichever came first. Section 5005 lets you settle all or part of the claim with one of them. Once approved, it fully releases that employer or insurer for that part, and you can keep pursuing the others. Their liability is reduced by the share attributed to the released employment. They get no credit if the settling employer paid more than that share, and you get nothing more from the released employer than the settlement. The judge measures adequacy against the released share’s potential liability after apportionment, without having to decide that liability finally.

What a C&R can’t do

• Settle the job displacement voucher (2013+ injuries). Labor Code §4658.7(g) says settlement or commutation of the supplemental job displacement benefit “shall not be permitted.” The C&R form also leaves vocational rehabilitation and job displacement benefits unreleased unless ordered.
• Reach injuries it doesn’t list. The form limits the release to the body parts, conditions and dates of injury written in it.
• Bind you before approval. Under §5001, an unapproved agreement isn’t valid.
• Get WCAB approval for claims outside workers’ comp. The form says signing it has no effect on claims outside the workers’ comp law unless the agreement expressly says otherwise, and DWC’s settlement guidelines note that the WCAB lacks jurisdiction to approve settlement of rights that don’t arise under the workers’ comp law. A FEHA discrimination or wrongful termination case is usually resolved in a separate civil settlement.

The form does let the parties include a Labor Code §132a retaliation claim as a settled issue, and it sweeps in accrued §5814 penalties unless they are expressly excluded. Read those paragraphs closely.

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Penalties, remedies and what happens after approval

Chapter 2 creates no penalties of its own; its built-in remedy is that an unapproved agreement isn’t valid. After approval, these rules matter:

• Deductions. The form lists permanent disability advances already paid, the attorney’s fee requested, and liens to be paid from the settlement. Under Labor Code §4906, an attorney can’t demand or accept a fee from you until the appeals board approves or sets it.
• Reconsideration. A party who believes the order is wrong can petition for reconsideration within 20 days after service, on the grounds listed in Labor Code §5903. See our page on petitions for reconsideration.
• Setting aside. The WCAB keeps continuing jurisdiction to rescind or amend its orders for good cause (Labor Code §5803). A DWC notice to workers (DEU Form 110) warns that an approved C&R “cannot be set aside except in very rare circumstances.”
• Late payment. If an approved settlement isn’t paid on time, see how long a settlement takes to be paid.

Key fact

Deadlines

Step	Deadline	Source
File the signed agreement with the WCAB	“Forthwith” (promptly)	Labor Code §5002
Petition for reconsideration of the order	20 days after service of the order	Labor Code §5903

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Related sections

Section	How it connects
Labor Code §5702	The other way to settle: stipulations with request for award, which usually keep future medical open
Labor Code §4903	Liens the board can allow against a settlement
Labor Code §4906	Attorney’s fees must be approved by the appeals board
Labor Code §4658.7(g)	The job displacement voucher can’t be settled
Labor Code §5500.5	Which employers are liable for cumulative trauma; used with §5005
Labor Code §§5803 and 5903	Continuing jurisdiction and reconsideration after approval

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How it plays out

💡 Example: Rosa, a hypothetical warehouse worker, injured her back and shoulder in 2025. The insurer disputes how much permanent disability she has and whether she needs surgery later. The parties agree to a C&R for $30,000. The form lists both body parts and the date of injury, shows $6,000 in permanent disability advances already paid, and lists an EDD lien of $1,500. Before the attorney’s fee the judge approves, Rosa’s balance is $30,000 − $6,000 − $1,500 = $22,500. She signs in front of two disinterested witnesses, the C&R is filed, and a judge reviews the medical reports for adequacy. Nothing is final until the judge signs the order approving it. After that, Rosa’s future medical care for her back and shoulder is closed unless the agreement says otherwise.

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What to do before you sign

1. Check that every injured body part and date of injury is listed, and that nothing you didn’t claim is swept in.
2. Find the paragraph on future medical care and make sure you understand whether it closes.
3. Compare the advances, liens and fee deductions with your own records. Our guide to liens on a settlement explains common ones.
4. Ask how the settlement may affect Social Security, Medicare or disability insurance; the form itself warns about this. See our Medicare set-aside guide.
5. If English isn’t your first language, ask for the document to be read to you in your language.
6. Get advice before signing. Our guide on whether to accept a settlement offer covers the decision.

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Frequently asked questions

Is a compromise and release final?

Once a judge approves it and the time for reconsideration passes, it generally is. The WCAB has continuing jurisdiction to rescind orders for good cause, but a DWC notice to workers warns that an approved C&R can be set aside only in very rare circumstances.

Does a C&R close my future medical care?

Usually. Unless the agreement says otherwise, the employer doesn’t pay for medical care after approval for the injuries the C&R covers.

Can I settle by C&R without a lawyer?

Yes. A judge must still review the agreement for adequacy. If you settle on your treating doctor’s report, DWC’s settlement guidelines say the file must show you were told of your right to a QME at the employer’s expense (injuries on or after January 1, 1994).

What does “two disinterested witnesses” mean?

Two people with no stake in the case watch you sign and sign as witnesses. Instead of witnesses, you can sign before a notary public.

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Sources

• Labor Code §5000
• Labor Code §5001
• Labor Code §5002
• Labor Code §5003
• Labor Code §5004
• Labor Code §5005
• Labor Code §4658.7, §4903, §4906, §5500.5, §5803, §5903, §27
• Cal. Code Regs., tit. 8, §10700 (WCAB Rule: Approval of Settlements)
• Cal. Code Regs., tit. 8, §10205.2 (required settlement forms)
• DWC-CA form 10214(c), Compromise and Release (Rev. 5/2020)
• DWC, Information Guidelines for Submission of Settlement Documents
• DWC Disability Evaluation Unit, Notice of Options Following Disability Rating (DEU 110)

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