If an employee has a permanent disability of 15 percent and the employer offers a $12,500 compromise for resignation, what is the appropriate stance?

If an employee has a permanent disability of 15 percent and the employer offers a $12,500 compromise for resignation, what is the appropriate stance?

• A. Prepare a stipulated Findings and Award for 15 percent
• B. Advise the employer it is against public policy
• C. Advise the employer it is okay
• D. Compromise and Release the claim with wording that the extra money is for the resignation

Answer: (B)

Coercing an employee to resign in exchange for a cash payoff to drop a workers’ compensation claim is not allowed in California. When there is a permanent disability, the claim is a protected right under the workers’ compensation system, and attempting to settle it by pressuring resignation undermines that right. Public policy supports employees pursuing legitimate benefits, not being bribed to abandon them. If a settlement is desired, it must go through the proper channels—such as a formal Compromise and Release or Stipulated Findings and Award—with informed consent and appropriate consideration, not a resignation conditioned on a payoff.

Coercing an employee to resign in exchange for a cash payoff to drop a workers’ compensation claim is not allowed in California. When there is a permanent disability, the claim is a protected right under the workers’ compensation system, and attempting to settle it by pressuring resignation undermines that right. Public policy supports employees pursuing legitimate benefits, not being bribed to abandon them. If a settlement is desired, it must go through the proper channels—such as a formal Compromise and Release or Stipulated Findings and Award—with informed consent and appropriate consideration, not a resignation conditioned on a payoff.