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What Is the Difference Between a C&R and a Stipulated Award in California?
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By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization · Cal Bar #285231
C&R or Stipulated Award: Which Way Should You Settle?
A C&R pays one lump sum and closes your case. A Stipulated Award pays you over time and keeps your medical open.
You got hurt at work. Now the insurance company wants to settle your claim. That word can feel scary. You may worry you are signing your future away. You may not understand what the papers really mean. That fear is normal.
Take a breath. A settlement is simply the end of your case. In California, there are two main ways to reach it. One hands you a lump of cash now. The other keeps your medical care open for life. Neither one is a trick, and the choice is yours to make.
The right choice is personal. It depends on your injury, your job, and your plans. This page breaks down both options in plain words. By the end, you will know the questions to ask before you sign.
What Is a Compromise and Release?
A Compromise and Release, or C&R, pays you one lump sum of cash. In return, you close your entire claim, including future medical care.
With a C&R, you take a single check and the case ends. You give up the right to come back for more money later. You also take over your own medical care from that day forward. Nothing about the claim stays open after the judge signs.
Many workers welcome this freedom. You pick your own doctors. You spend the money the way your family needs to. California normally covers all work injury treatment with no copay under Labor Code 4600. A C&R trades that lifetime coverage for one payment today.
There is a real trade to weigh here. If your injury flares up next year, the bill is now yours alone. And if you are on Medicare, part of the money may be set aside just for future care. A good attorney runs all of these numbers with you before you sign.
What Is a Stipulated Award?
A Stipulated Award, or Stips, is a deal on your disability rating. It pays your permanent disability over time and keeps your medical care open.
With Stips, both sides agree on how hurt you are. That number is your permanent disability rating. It runs from 0 to 100 percent under Labor Code 4660.1. The rating can move up or down for your age and your type of job.
The insurer then pays that disability in steady checks, not one lump sum. In 2026 the weekly rate runs $160 to $290 under Labor Code 4658. A higher rating buys you more weeks of pay. A rating of 70 percent or higher even adds a lifetime pension. The table below uses the 2026 top rate, so your own checks may run lower.
| PD rating | Weeks of pay | Total at the $290 max |
|---|---|---|
| 10% | 30 weeks | $8,700 |
| 20% | 75 weeks | $21,750 |
| 25% | 100 weeks | $29,000 |
| 30% | 130 weeks | $37,700 |
| 40% | 200 weeks | $58,000 |
| 50% | 270 weeks | $78,300 |
| 60% | 350 weeks | $101,500 |
| 70% | 430 weeks | $124,700 |
Your medical care for the injury also stays open. The insurer keeps paying to treat that body part. But their Medical Provider Network still picks your doctors under Labor Code 4616. And if your injury later gets much worse, you may be able to reopen the case for more. With a C&R, that door is shut for good.
C&R vs Stips: What Is the Real Difference?
The big difference is medical care. A C&R closes it for cash. A Stipulated Award keeps it open but pays you slowly over time.
| What matters | Compromise and Release | Stipulated Award |
|---|---|---|
| How you are paid | One lump sum | Steady checks over time |
| Future medical care | Closed, you handle it | Stays open for the injury |
| Who picks your doctor | You do, and you pay | The insurer's network |
| Can you reopen it | No | Sometimes, if you get worse |
| Your case | Fully and finally closed | Stays open |
| Best when | You want cash and closure | You need future care |
Think about your body first. Will you need surgery, shots, or therapy down the road? Open medical care can be worth far more than any check. A bad back or knee can cost a fortune to treat over the years.
Then think about trust. Some insurers fight nearly every treatment request. They can deny care through Utilization Review. You would have to appeal through Independent Medical Review. You must file that appeal within 30 days under Labor Code 4610.5. If that battle sounds draining, a C&R buys your way out of it.
Money matters too. A C&R hands you a large sum all at once. That can pay off debt, cover your rent, or fund a fresh start. Stips drip in slowly instead. That can be harder when the bills are due right now.
Which Settlement Is Right for You?
There is no single right answer. A C&R fits workers who want cash and a clean break. Stips fit workers who need future care.
| Your situation | Likely better fit |
|---|---|
| You want cash now and closure | C&R |
| You are leaving or lost the job | C&R |
| You distrust the insurer's doctors | C&R |
| Your injury may need surgery later | Stips |
| You want medical coverage for life | Stips |
| You plan to stay at the job | Stips |
Look at the table and be honest about your life. Are you leaving this job? Do you trust the insurer's doctors? Is your injury the kind that only gets worse over time? Your honest answers point you toward one path.
You do not have to guess alone. A judge must approve any settlement, so a lawyer reviews the math first. The right deal can mean tens of thousands of dollars and years of care. It is worth one free phone call before you sign a thing.
One last tip. Bring every medical record to your first meeting. The stronger your records, the higher your rating tends to be. And a higher rating means a bigger settlement, no matter which type you choose.
Injured at work? Call (661) 273-1780
Tap to call →If you were hurt on the job in Greater Los Angeles, you do not have to make this choice alone. Yazdchi Law represents injured workers across the Antelope Valley, the San Fernando Valley, and all of Greater LA. We appear at the workers compensation boards in Van Nuys, Los Angeles, Long Beach, Pomona, San Bernardino, Riverside, and Oxnard.
A settlement is one of the biggest decisions of your whole claim. Sign the wrong one and you can lose care you will need for years. We sit down with you, study your injury, and run the numbers both ways. We have walked hundreds of injured workers through this exact fork in the road. Then we tell you, in plain words, what we would do if we were in your shoes. There is never any pressure to settle before you are ready.
Eman Yazdchi is a Certified Specialist in workers' compensation law, certified by the California Board of Legal Specialization, State Bar of California. That credential means your settlement is reviewed by someone who handles these cases every single day.
Your first visit is free. You pay no fee unless we win, and our fee is a small share that the judge approves. Call (661) 273-1780 to talk through your C&R or Stipulated Award options today.
Frequently Asked Questions
Can I take a lump sum and still keep my medical care open?
Usually not. A lump sum settlement is a Compromise and Release, and signing it closes your future medical care. To keep your medical care open, you take a Stipulated Award instead. That kind of settlement pays your disability over time and leaves treatment open for the injury. A few unusual cases split the difference, but most workers pick one path or the other. Do not assume you can have both at once. Your attorney can look at your injury and tell you which structure protects you best.
Is a Compromise and Release lump sum taxed?
No. Workers compensation benefits are not taxed under federal law. That includes a Compromise and Release lump sum, under Internal Revenue Code Section 104(a)(1). You do not report the settlement as income on your tax return. One caution applies. If you put the money into an account that earns interest, that interest can be taxed. The settlement itself stays tax free. Many injured workers are surprised by this, in a good way, since the money goes further than they expect.
How long does it take to get my C&R money?
After you and the insurer sign, a workers compensation judge must review and approve the deal. That review exists to protect you from a bad settlement. Once the judge signs the order approving it, the insurer must pay you within about 30 days. So from a signed agreement to cash in hand, plan on roughly a month, and sometimes a little longer. If the insurer pays you late, it may owe you a penalty on top of the money.
What happens to my medical care after a C&R?
It becomes your responsibility. After a Compromise and Release, the insurer stops paying for treatment of that injury for good. You then lean on your own health insurance, on Medicare, or on the settlement money to cover your care. If you are on Medicare or near it, some of the settlement may have to be set aside just for future treatment. This is exactly why a C&R needs careful math first. Closing your medical care is permanent, so the number truly has to be right.
Can I change my mind after I sign a settlement?
It is very hard, so be sure before you sign. Once a judge approves your settlement, it is final in almost every case. You cannot come back later for more money if your injury gets worse, unless you settled with open medical and a right to reopen. That is exactly why the choice between a C&R and a Stipulated Award matters so much. Talk to an attorney before you sign anything, while you still have every option open to you.
Which settlement is better for me, a C&R or Stips?
Neither is better for everyone, and anyone who promises otherwise is guessing. A C&R is often best when you want cash, plan to leave the job, or want to choose your own doctors. Stips are often best when your injury needs ongoing care you cannot risk losing, or you plan to stay at work. The right answer depends on your health, your job, and your future medical needs. A free consultation can lay your options out in plain words.
Last reviewed by Eman Yazdchi, Esq., June 2026.
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