What does "compromise and release" mean in the context of workers' compensation settlements?

In the context of workers' compensation settlements, "compromise and release" refers to a settlement agreement where the injured worker receives a lump-sum payment in exchange for waiving any further claims related to the injury. This means that once the injured worker accepts this settlement, they relinquish their right to pursue additional benefits or claims connected to the injury, effectively concluding their case. This type of settlement is beneficial for both the worker and the employer or insurance carrier as it provides a clear resolution to the claim, allowing all parties to move forward without the uncertainty of ongoing litigation or additional claims.

Other options do not accurately describe a "compromise and release." For instance, settlements that only cover medical costs do not include compensation for lost wages or permanent disability, hence not reflecting the complete nature of this type of agreement. Similarly, extending medical benefits indefinitely contradicts the definition since a compromise and release typically involves a stipulation to cease further claims. Lastly, the notion of renegotiating existing claims does not align with the finality of a settlement agreement that a compromise and release embodies.