CompFox AI Summary
The Workers' Compensation Appeals Board (WCAB) reconsidered an administrative law judge's (ALJ) disapproval of a Compromise and Release (C&R). The ALJ found the C&R unlawful due to an alleged assignment of liability, citing Labor Code section 4900. The WCAB clarified that while an injured worker cannot assign their claim, a structured settlement where a third party pays the insurer's obligation with the worker's consent is permissible. After reviewing the financial stability of the annuity provider, the WCAB found the settlement adequate and in the applicant's best interest, thus rescinding the disapproval and approving the C&R.
Full Decision Text1 Pages
The Workers' Compensation Appeals Board (WCAB) reconsidered an administrative law judge's (ALJ) disapproval of a Compromise and Release (C&R). The ALJ found the C&R unlawful due to an alleged assignment of liability, citing Labor Code section 4900. The WCAB clarified that while an injured worker cannot assign their claim, a structured settlement where a third party pays the insurer's obligation with the worker's consent is permissible. After reviewing the financial stability of the annuity provider, the WCAB found the settlement adequate and in the applicant's best interest, thus rescinding the disapproval and approving the C&R.
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