In relation to attorney fees, which option demonstrates proper procedure to pay from the end of the award when using a STIP?

In relation to attorney fees, which option demonstrates proper procedure to pay from the end of the award when using a STIP?

• A. Pay the attorney fee from the far end of the award
• B. Pay the attorney so he will go away
• C. Tell the AA to get an order from the WCAB ordering the fee be commuted from the far end of the award
• D. Do not pay the attorney's fee

Answer: (C)

The key idea is that when a case is resolved with a Stipulation with Award (STIP), attorney fees tied to that stipulation must be handled through a formal process if they’re paid from the end of the award. The proper method is to have the Workers’ Compensation Appeals Board issue an order that the attorney’s fee be commuted from the far end of the award. This WCAB order legally authorizes redirecting the future benefits to pay the attorney, ensuring the worker’s benefits aren’t improperly diminished and that the fee is paid in accordance with the board’s rules. Other approaches aren’t appropriate: paying from the end without a WCAB order isn’t a compliant procedure, attempting to “pay the attorney to go away” is unethical, and skipping payment altogether fails to follow the agreed-upon terms.

The key idea is that when a case is resolved with a Stipulation with Award (STIP), attorney fees tied to that stipulation must be handled through a formal process if they’re paid from the end of the award. The proper method is to have the Workers’ Compensation Appeals Board issue an order that the attorney’s fee be commuted from the far end of the award. This WCAB order legally authorizes redirecting the future benefits to pay the attorney, ensuring the worker’s benefits aren’t improperly diminished and that the fee is paid in accordance with the board’s rules.

Other approaches aren’t appropriate: paying from the end without a WCAB order isn’t a compliant procedure, attempting to “pay the attorney to go away” is unethical, and skipping payment altogether fails to follow the agreed-upon terms.