Legal Professionals Standing By 24/7

What is a Compromise and Release Settlement?

Paper with pink check marks and highlighter

Pink Highlighter Check Mark Boxes

What to Learn About Compromise and Release Settlements

Medical care can be rather expensive, especially when you’re paying out of pocket. Incurring a condition while on duty can be devastating as it prevents you from maintaining your income stream while handicapping yourself. This is why it’s important to seek workers’ compensation and gain a settlement.

Undergoing a workers’ compensation case means that there are many possibilities for resolving the issue. It’s important to have the right consultants and professionals behind you to handle your case and get you the repayment that you deserve from whatever illness or injury you’ve gotten in the past.

A compromise and release settlement is one of many types of arrangements that your company and their insurer may offer you. Keep reading to learn more about it.

What a Compromise and Release Settlement Is

A compromise and release settlement is a lump sum payment that can rectify all the issues of your workers’ compensation case. This is most ideal for the company and insurer liable as the issues and legalities can be put to rest.

One notable clause of a compromise and release settlement that differs it from other kinds of agreement is in regards to the liability for future medical bills or medication. When you agree to a C&R settlement and take the payment, you take responsibility for your own medical care.

When to Enter a C&R Settlement

C&R settlements can be discussed and executed at any time during your case. However, they’re often proposed or given when an employee declares Permanent and Stationary. Seek guidance from a compensation consultant on that.

Entering this type of settlement can depend on your circumstances and decision. Some workers may be discouraged from agreeing to a compromise and release statement as a lump sum of money might not be the best for them. It is a case-to-case basis, though, so assess the situation.

What the Process Behind a C&R Settlement Is

If you are interested in getting a C&R settlement, this can be negotiated with the company liable for your condition. Do take note that both the employer and employee must agree on the terms of the settlement for it to proceed. Seek counsel if the offer made to you is good.

Once the paperwork has been finalized and signed, the C&R settlement is given to a Workers Compensation Judge. They will review the submission and determine whether it will get approval or not. A P&S report may be requested by the Judge as well.

Who Is Involved in the C&R Settlement Process

Generally, the employee, employers, insurers, and legal consultants will be involved in the settlement process. The insurance company doesn’t necessarily have to agree to the C&R for it to be submitted and approved since they cannot force the worker to handle their medical care.

When all is said and done with a workers’ compensation case though, employees can still approach the insurance company and appeal their case to negotiate a C&R settlement once more. Be sure to follow up for a response when necessary.


A C&R settlement can be a great solution, granting you compensation for whatever work injuries or illness you’ve contracted. It may not be the recompense arrangement for everyone though, so speak with a consultant to strategize negotiating what kind of repayment you’re looking for.

Looking for workers’ compensation lawyers near Northern California? Pacific Workers provides employees with workers’ compensation consultants who can assist you with your case. Call us at 800-606-6999 for a free consultation.

Related Posts
  • How to prevent repetitive work injuries Read More
  • How Important are Doctors in a CA Workers' Comp Case? Read More
  • Tesla’s Fremont plant is a risky place to work! Read More