What must occur for a C&R to be valid?

What must occur for a C&R to be valid?

• A. Approval by the appeals board or referee
• B. Approval by the employer's attorney
• C. Court confirmation
• D. Employee consent alone

Answer: (A)

A Compromise and Release is only valid when it receives approval from the Workers’ Compensation Appeals Board (WCAB) or a referee. That independent approval provides judicial oversight to ensure the terms are fair, the employee understands the consequences of releasing future benefits, and any medical or lien issues are properly addressed. Without this board-approved validation, the settlement isn’t enforceable. Approval by the employer’s attorney or by the employee alone isn’t enough because there’s no neutral safeguard to protect the employee or ensure all rights and obligations are properly considered. While court confirmation is related in spirit, the official mechanism in California workers’ compensation is approval by the WCAB (appeals board) or a referee.

A Compromise and Release is only valid when it receives approval from the Workers’ Compensation Appeals Board (WCAB) or a referee. That independent approval provides judicial oversight to ensure the terms are fair, the employee understands the consequences of releasing future benefits, and any medical or lien issues are properly addressed. Without this board-approved validation, the settlement isn’t enforceable.

Approval by the employer’s attorney or by the employee alone isn’t enough because there’s no neutral safeguard to protect the employee or ensure all rights and obligations are properly considered. While court confirmation is related in spirit, the official mechanism in California workers’ compensation is approval by the WCAB (appeals board) or a referee.