Types Of Workers’ Comp Settlements

When an employee is injured on the job, they may be entitled to receive workers’ comp benefits to cover medical expenses, lost wages, and rehabilitation costs. One aspect that often confuses individuals is the concept of worker’s comp settlements. In this article, we will explore the different types of settlements, the factors that affect their value, and how to navigate the process for the best possible outcome.

Types of Workers’ Comp Settlements:

There are two main types of workers’ compensation settlements: Stipulated Findings and Award and Compromise and Release. Understanding the difference between these settlements is crucial to making an informed decision on how to proceed with your claim.

Stipulated Findings and Award

A Stipulated Findings and Award settlement is an agreement between the injured employee and the insurance company wherein both parties agree on the extent of the worker’s disability and the benefits they are entitled to receive. This type of settlement does not close the case completely, as the worker still has the right to receive future medical treatment for work-related injury or illness.

Compromise and Release

A Compromise and Release settlement, on the other hand, is a one-time lump-sum payment that closes the workers’ comp case entirely. The employee receives a negotiated amount from the insurance company and forfeits their right to any future medical treatment or benefits related to the work injury.

Factors Affecting Workers’ Comp Settlement Value:

The value of a worker’s comp settlement is influenced by several factors, which can vary depending on the circumstances of the case. Some of the main factors that determine the settlement value include:

  • The extent of the Injury: The severity and permanence of the injury play a significant role in determining the amount of compensation. The more severe the injury, the higher the compensation will be, as the worker will likely require more medical treatment and be unable to return to work for an extended period.
  • Medical Expenses: The cost of medical treatment, including surgeries, hospitalization, and rehabilitation, also influences the settlement value. Insurance companies will consider the projected cost of future medical care when determining the settlement amount.
  • Lost Wages: Workers’ compensation settlements often include compensation for lost wages due to the inability to work because of the injury. The amount of lost wages depends on the worker’s salary and the length of time they are unable to work.
  • Disability Rating: A worker’s disability rating, assigned by a medical professional, indicates the extent of their impairment and inability to perform work-related tasks. A higher disability rating will result in a higher settlement value.
  • Age and Occupation: The age and occupation of the injured worker also play a role in determining the settlement value. Younger workers who have a longer remaining work-life expectancy may receive higher settlements, as they will likely lose more future earnings due to the injury.


Understanding the types of workers’ comp settlements and the factors that influence their value is crucial for injured employees navigating the compensation process. By being informed about the differences between Stipulated Findings and Award and Compromise and Release settlements, as well as the various factors that determine their value, injured workers can make better decisions about their claims. It is essential to carefully weigh the potential benefits and drawbacks of each settlement type before making a decision, as the outcome can significantly impact one’s financial and medical well-being. If you are uncertain about the best course of action for your specific situation, consulting with an experienced workers’ compensation attorney can provide valuable guidance and help you secure the most favorable outcome.

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