Sometimes, parties settle a claim by way of compromise and release (C&R) before the injured worker is released from care. There are various reasons why they might agree do this. Employees might want to avoid the delays and risks in the litigation process. Employers might want to avoid discovery and litigation costs, and to close the file.
Although most issues can be resolved as part of a C&R, Labor Code § 4658.7(g) precludes settlement or commutation of a claim for the supplemental job displacement benefit (SJDB) voucher for injuries occurring on or after Jan. 1, 2013. But an employee is not automatically entitled to the voucher. Pursuant to § 4658.7(b), an employee is entitled to the voucher only if the injury causes permanent partial disability and the employer does not make a timely offer of regular, modified or alternative work.