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Do I Need to Resign to Get a Compromise and Release Settlement?

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After a work injury, settlements are usual when ending a Workers’ Comp process. One of the two alternatives to do it is the Compromise and Release (C&R) settlement.

C&Rs happens when the insurance company, or the self-insured employer, gives the employee a one-time lump sum payment to buy out the entire liability for the case.

However, accepting this settlement will eliminate your right to keep seeking medical care through the Workers’ Compensation System. This means you would lose all the benefits you might have been entitled to through Workers’ Comp.

Check out our blog about C&Rs here.

Is Resigning Necessary?

Every now and then, insurance companies ask the employees to resign in order to be given a Compromise and Release Settlement. But this doesn’t mean you have to do it.

The idea of resignation comes up when insurance companies are buying out your medical care, and they are afraid you will turn into a potential risk for them again if you reinjure yourself.

If you get back to work, there is a chance you will get injured again. This means there is still a possible liability for them, and they would have to repeat the process all over again. So, they talk about resignation because they want to be sure that the financial risk is out of the picture.

On the other hand, there are cases when injured workers resign after a C&R settlement because they want to seize the moment and make changes in their lives. Whether they have different needs, new plans, or looking forward to refreshing or reinventing their lives, this is an opportunity for them to move on and start walking along a new path.

Does My Employer Have Anything to Do With It?

Actually, it does not. This situation is not a synonym for your employer disliking you. Neither does it mean that you are doing something wrong, and your employer wants you out. It is just a tactic that insurance companies sometimes use to protect themselves.

There are cases when the insurance asks employees to resign. After they agree, the employer calls them back to work. This happens because they are an essential part of the company or do a remarkable job, and the employer doesn’t want to lose them.

When this happens, the insurance can’t do anything about it. There is no legal basis for it to stop you from returning to your old job, and there is no damage beneath it. So, if you want to come back, you can do it without any issues.

Accepting a C&R settlement and then resigning is something not to be taken lightly. A Compromise and Release Settlement is a voluntary process. It is also a back-and-forth exchange: As you are not obliged to resign, the insurance company is not obliged to buy out your medical care.

This is a significant life decision. If you find yourself in this situation, the best you can do is find an attorney who can guide you and help you make the right choice.

Remember, you don’t have to do this alone. Call us for a free consultation at 800-606-6999.

Pacific Workers', The Lawyers for Injured Workers in Northern California's Premier Workers' Compensation Law Firm. Representing First Responders, Health Care Workers, Construction Workers, Delivery Workers, Warehouse Workers, and all the hard-working people that keep our community moving in their Fight for Justice against the Insurance Companies.

With over 250+ Five Star Reviews; an incredible staff of caring, well-trained, advanced technology for superior client communication: a record of accomplishment of an over 98%-win rate and giving back to our community through the Pacific Workers' Foundation, it is easy to see why Pacific Workers' is the go-to law firm for all injured workers in Northern California. Find our offices in Oakland, Concord, Stockton, Tracy, San Jose, and Sacramento.

If you or a loved one need help or just have a question, give us a call at 800-606-6999 or email us at

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