In handling an attorney's fee under a STIP, which action is appropriate?

In handling an attorney's fee under a STIP, which action is appropriate?

• A. Pay the attorney fee from the far end of the award
• B. Pay the attorney first and then pay the injured employee
• C. Pay the attorney so he will go away
• D. Tell the attorney to get an order from the WCAB to commute the fee from the far end of the award

Answer: (D)

The key idea is that attorney fees under a stipulation are handled through a court-approved commutation, not paid arbitrarily. When the stipulation creates a long‑term or ongoing award, the attorney’s fee can be converted into a lump-sum payment by commuting it from the far end of the award, but this must be done by an order from the Workers’ Compensation Appeals Board (WCAB). This ensures the employee’s ongoing benefits aren’t improperly reduced and gives the fee to the attorney in a legally approved manner based on the present value of future payments. So the appropriate action is to have the attorney seek a WCAB order to commute the fee from the far end of the award.

The key idea is that attorney fees under a stipulation are handled through a court-approved commutation, not paid arbitrarily. When the stipulation creates a long‑term or ongoing award, the attorney’s fee can be converted into a lump-sum payment by commuting it from the far end of the award, but this must be done by an order from the Workers’ Compensation Appeals Board (WCAB). This ensures the employee’s ongoing benefits aren’t improperly reduced and gives the fee to the attorney in a legally approved manner based on the present value of future payments. So the appropriate action is to have the attorney seek a WCAB order to commute the fee from the far end of the award.