If you’re recovering from a job-related injury, you may be wondering:
“When can I settle my workers’ compensation case — and how do I know it’s the right time?”
At Employees First Labor Law, we help injured California workers settle their cases at the right time, for the right value — and avoid pressure from insurance companies trying to force a lowball deal.
Here’s what you need to know before you sign anything.
🔹 Two Types of Workers’ Comp Settlements
There are two main types of settlements in California workers’ comp cases:
✅ Stipulated Findings and Award
- You and the insurance company agree on a disability rating
- You continue receiving biweekly payments and medical care
- Keeps your case open in case your condition worsens
- Best for people with ongoing medical needs
✅ Compromise and Release (C&R)
- A lump-sum cash payout
- You give up the right to future medical care
- Usually includes payment for permanent disability, unpaid wages, and sometimes vocational benefits
- Can be finalized once you reach Maximum Medical Improvement (MMI)
⚠️ Once you accept a C&R settlement, your case is closed forever — so timing is everything.
🔹 When Are You Allowed to Settle?
You can settle your case at almost any time, but it’s generally recommended to wait until you reach MMI, which means:
- Your condition has stabilized
- The doctor has issued a permanent disability rating
- Your future medical needs are more predictable
Early settlements are sometimes possible but not advisable unless:
- You’re represented by an experienced attorney
- Your injury is minor
- You’re fully recovered and not expecting future treatment
🔹 Pros and Cons of Settling Early
Pros:
- Quick financial relief
- Avoids further litigation or delays
- May provide closure and flexibility
Cons:
- You might leave money on the table
- You may not get compensation for future medical care
- Your disability rating may be higher than originally assessed
- Insurance companies may lowball you when you’re still vulnerable
🔹 Signs It Might Be Time to Settle
You may be ready to settle if:
- You’ve reached MMI
- You’ve received a permanent disability rating
- You’ve reviewed your future medical needs with your doctor
- You want to avoid years of additional litigation
- Your attorney believes it’s the right financial move
🔹 Why You Shouldn’t Settle Without a Lawyer
Insurance companies often try to settle before you understand your full rights. They may:
- Downplay the severity of your injury
- Offer low disability ratings
- Ignore your need for future care
- Rush you into a C&R that saves them money
At Employees First Labor Law, we:
- Fight for the highest disability rating
- Calculate full lifetime medical costs
- Bring in medical and vocational experts when needed
- Negotiate from a position of strength — and take it to court if necessary
The difference between a rushed settlement and a strategic one can mean hundreds of thousands of dollars.
🔹 We Handle More Than Just Workers’ Comp
Many cases involve employment law violations, like:
- Retaliation for filing a claim
- Wrongful termination while injured
- Disability discrimination
We pursue civil claims in addition to workers’ comp, which means we can increase your total recovery and protect your rights beyond the WCAB.
✅ Get a Free Case Evaluation
If you’re considering settling your workers’ comp case, don’t do it alone. Contact Employees First Labor Law for a free consultation, and we’ll help you understand:
- When to settle
- What your case is really worth
- And how to protect your long-term health and financial security
