Managing Employee Injuries and Disability and Occupational Safety

b. Adequacy A settlement will not be approved unless the Board determines that the compensation is adequate under the circumstances. Under the WCAB’s rules, agreements which provide for payment of less than the full amount of compensation due or to become due, and which undertake to release an employer from all future liability, will be approved only where it appears that a reasonable doubt exists as to the rights of the parties or that approval is in the best interest of the parties. No agreement shall relieve an employer of liability for vocational rehabilitation benefits unless the WCAB makes a finding that there is a good faith issue, which, if resolved against the employee, would defeat the employee’s right to all workers’ compensation. d. Appeals Board Authority The Appeals Board has broad authority to approve or disapprove compromise and release agreements. An approved compromise and release has the same effect as an award made after a full hearing. The Board may not modify the agreement. e. Finality A compromise and release which has been approved may not be set aside except for fraud, duress, undue influence, incompetence, or mutual mistake. f. Form The agreement must be in writing, signed, attested and notarized, and must provide such information as the WCAB deems appropriate. The Board provides official forms. Labor Code Section 5003. g. Stipulation with Request for Award Frequently, disputed issues in a workers’ compensation claim are resolved by a Stipulation with Request for Award. This form of settlement leaves open to the employee a right to reopen the claim if the disability worsens, or to reserve a right to ongoing medical treatment. h. Lump Sum Payment Authority, with the exception of an award under the subsequent injuries or rehabilitation provisions of the act, the WCAB may commute the compensation payable under the workers’ compensation law to a lump sum and order it paid immediately. 8. R EOPENING , M ODIFICATION , T ERMINATION AND R EDISTRIBUTION The WCAB has continuing jurisdiction for five years from the date of injury to rescind or amend any award or order, or increase, diminish or terminate any compensation award for good cause. Labor Code Section 5804. Note that a case which has been settled by compromise and release may not ordinarily be reopened. c. Exclusivity The Labor Code and the Appeals Board rules provide the exclusive procedure for settlement.

Managing Employee Injuries, Disability and Occupational Safety ©2019 (s) Liebert Cassidy Whitmore 49