If you’ve been injured at work and are approaching the settlement stage of your workers’ compensation case, one option available to you is a Stipulated Award. While many injured workers are familiar with lump-sum settlements, few understand the important advantages—and limitations—of a stipulated resolution.
At Employees First Labor Law, we take the time to explain every legal option and help clients make informed decisions that protect their health, finances, and future.
Here’s everything you need to know about Stipulated Awards in California workers’ compensation law.
What Is a Stipulated Award?
A Stipulated Award is a legal agreement between you (the injured worker) and the insurance company. It outlines the terms of your workers’ compensation benefits and is submitted to the Workers’ Compensation Appeals Board (WCAB) for approval.
Once the WCAB approves the agreement, it becomes an enforceable court order.
This settlement is typically based on a permanent disability rating, agreed upon by both sides (or decided by a judge, QME, or AME), and provides:
- A weekly benefit payment schedule
- Continued access to medical treatment
- The potential for vocational rehabilitation benefits
Unlike a Compromise & Release, a Stipulated Award does not close your case forever. You may still receive care and even reopen your claim under certain conditions.
What Does a Stipulated Award Include?
A valid Stipulated Award typically includes:
1. Permanent Disability Rating (PDR)
This rating (e.g., 32%) reflects your loss of earning capacity. It’s based on medical evidence, job classification, age, and the nature of the injury.
2. Weekly Payments
Your benefits are paid over time based on your PDR. For example:
- A 20% rating might result in 90 weeks of payments
- The benefit rate depends on your average weekly wage at the time of injury
3. Lifetime Medical Care
You remain eligible for medical treatment for your accepted injury—including surgeries, therapy, medications, and durable medical equipment—as long as it’s reasonable and necessary.
4. Vocational Retraining (If Applicable)
If your employer can’t offer you modified or alternative work, you may also be entitled to:
- A $6,000 Supplemental Job Displacement Voucher
- A $5,000 Return-to-Work Supplement
Can I Reopen My Case After a Stipulated Award?
Yes. Unlike a C&R settlement, a Stipulated Award leaves the door open to reopen your case under certain conditions.
Under Labor Code § 5410, you may file a Petition to Reopen if:
- Your injury worsens substantially (e.g., you need surgery years later)
- New symptoms emerge or existing limitations become more severe
- You file the petition within five (5) years of the date of injury
🗓️ Important: The five-year clock begins on the date of injury, not the date of settlement. If you wait too long, you may lose this option permanently.
Reopening your case could result in:
- A higher permanent disability rating
- Additional compensation
- Access to further treatment and benefits
Is a Stipulated Award a Lump-Sum Payment?
No. A Stipulated Award usually involves structured weekly payments over a set period.
However, in some situations, you or your attorney can request a commutation, which means part or all of your unpaid benefits are accelerated and paid in a lump sum. This must be approved by the WCAB and is typically allowed when justified by financial hardship or efficiency.
When Is a Stipulated Award a Smart Option?
A Stipulated Award may be ideal if:
- You want to preserve your medical rights
- Your injury may worsen in the future
- You want the court’s ongoing jurisdiction
- You prefer a structured payout instead of a full settlement
It’s especially helpful in cases involving:
- Spinal injuries (risk of later surgery or complications)
- Shoulder, knee, or joint damage
- Nerve or soft tissue injuries that may flare up or deteriorate
- Pain management and ongoing care needs
✅ Tip: If your condition is still changing or you’re unsure about long-term treatment needs, a Stipulated Award gives you more flexibility and protection.
⚠️ When Is It Not the Best Fit?
A Stipulated Award may not be the right option if:
- You want a full, final settlement and no further contact
- You have alternative insurance or don’t plan to use workers’ comp medical care
- You’re unlikely to need more treatment and prefer a lump-sum payout
In these cases, a Compromise & Release (C&R) might be a better path. But remember: a C&R waives your right to reopen your case or get future medical care—that’s a serious decision.
Why You Should Never Sign Without Legal Advice
Insurance carriers often present settlement documents as a “done deal,” but the reality is that you may be leaving thousands of dollars—and future rights—on the table.
At Employees First Labor Law, we:
- Negotiate higher disability ratings
- Make sure you’re not settling too soon or for too little
- Protect your access to medical care
- Advise you whether a Stipulated Award or C&R is in your best interest
- File Petitions to Reopen if your condition worsens
📞 Talk to EFLL Before You Sign a Stipulated Award
Your workers’ compensation settlement could impact your health and income for the rest of your life. Don’t rush it—and don’t go it alone.
📲 Call Employees First Labor Law today or contact us online for a free, confidential consultation. We’ll help you understand the big picture—and secure the outcome you deserve.
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