The Compromise and Release (C&R) Form in California Workers' Comp

What Is a Compromise and Release in a California Workers' Comp Claim?

A C&R is a settlement that pays you one lump sum to close your workers' comp claim, instead of paying your benefits over time.

People shorten the name to "C&R." You give up the right to ask for more money or more medical care for the injury later, in exchange for a single check now. A workers' compensation judge at the Workers' Compensation Appeals Board (WCAB) has to review the deal and approve it before it is final. Nothing is settled until that happens.

A C&R is one of two common ways to end a California workers' comp case. The other is a Stipulated Award, which pays permanent disability over time and usually keeps medical care open. Our C&R versus Stipulated Award guide compares the two side by side.

There is no published number to look up for your own settlement, and this page will not invent one. Insurers often start from the permanent disability schedule when they make an offer.

PD rating	Benefit weeks	Award at the 2026 max ($290/wk)
10 percent	30 weeks	$8,700
20 percent	75 weeks	$21,750
30 percent	130 weeks	$37,700
40 percent	200 weeks	$58,000
50 percent	270 weeks	$78,300
60 percent	350 weeks	$101,500
70 percent	430 weeks	$124,700 plus a life pension

shows how a disability rating converts into weeks of pay when benefits run over time under a Stipulated Award. A C&R trades that schedule for one negotiated number, so your wage, your rating, your age, and your future medical needs all affect the math. For a broader look at how settlements move from offer to payment, see our workers' comp settlement overview.

What Is on the C&R Form, and Who Fills It Out?

California's Compromise and Release form is DWC-CA Form 10214(c), and state law spells out exactly what it has to say before a judge will sign it.

The Division of Workers' Compensation publishes the form on its official forms page (checked October 19, 2026). Related versions cover a death case or a case with a third party claim, but most injured workers use the standard Form 10214(c). Labor Code section 5003 lists what the document itself must include:

Every release or compromise agreement shall be in writing and duly executed, and the signature of the employee or other beneficiary shall be attested by two disinterested witnesses or acknowledged before a notary public.

In practice, the claims administrator or its attorney usually prepares the paperwork, since they hold the wage and payment records the form needs. Both sides then sign it, and the filing party must send WCAB any medical reports relevant to deciding whether the deal is fair, under California Code of Regulations title 8, section 10700 (checked October 19, 2026). If you do not have a lawyer, section 5003 requires two disinterested witnesses to watch you sign, or a notary to acknowledge your signature. The claims administrator should also help you get the award, and the Information and Assistance Unit at your local DWC office can explain the paperwork at no cost.

How Long Does a Compromise and Release Take to Pay?

There is no single statewide deadline for the check to arrive, because payment depends on how long approval takes and how quickly the payor acts once the judge signs.

Before any money moves, the appeals board has to review the deal. Under California Code of Regulations title 8, section 10700, the board checks whether the amount is adequate and can set a hearing if it has questions. An agreement that pays less than the full value of the claim needs a real reason. The board approves it only when a genuine doubt exists about who is right, or when approval otherwise serves both sides' interests.

Once a judge signs the order approving the Compromise and Release, the amount due is treated as payable right away. Labor Code section 5800 says an appeals board award carries interest from the date it is filed on any part that is not paid. If the payor is unreasonably slow, Labor Code section 5814 allows a penalty of up to 25 percent of the late amount, or ten thousand dollars, whichever is less. Our settlement timeline guide walks through the steps before you ever reach a signed C&R, from medical reports to negotiation.

Can I Keep Medical Care After a C&R?

Usually not for the injury you are settling. A standard C&R closes future medical care for that injury in exchange for the lump sum, unless the agreement specifically keeps it open.

Until your Compromise and Release is approved, Labor Code section 4600 still requires the employer's insurer to provide reasonable medical treatment for your accepted injury. Once the judge signs the order, that duty usually ends for the body parts the release covers. Whether to close medical care or keep it open is a bigger decision than this page can cover. Our guide on keeping medical open versus closing it out walks through that choice, including Medicare's interest in future care.

Can I Change My Mind After I Sign?

Before a judge approves the deal, you can still raise an objection, because Labor Code section 5001 says no release is valid until the appeals board approves it.

Signing the form is not the final step. The board still has to review the agreement, and under California Code of Regulations title 8, section 10700, it can set a hearing before deciding whether to approve it.

After the judge signs the order, it becomes a final order. Labor Code section 5903 lets either side ask for reconsideration within 20 days after the order is served. Reconsideration is granted only on specific legal grounds, not just a change of mind. Add five calendar days to that deadline if the order was served by mail, fax, or email, under California Code of Regulations title 8, section 10605. A later change of heart is not one of those grounds.

Is a C&R Settlement Taxable?

No. Federal law excludes workers' compensation payments, including a C&R lump sum, from taxable income.

Title 26 of the United States Code, section 104(a)(1) excludes amounts received under a workers' compensation act as payment for a personal injury or sickness. The IRS's Publication 525 confirms these payments are fully exempt, and you should not expect a W-2 or 1099 for the lump sum. For how this plays out in California, and what changes if you also receive Social Security Disability Insurance, see our full guide on whether workers' comp is taxable in California.

Before you sign anything, read the whole form, not just the payment line. Check the average weekly wage, the dates, and any lien against the checklist above, since a mistake there can be hard to fix once a judge approves the order.

A C&R is often the biggest single decision in a workers' comp claim, especially when future medical care or a lien is involved. If an attorney represents you, Labor Code section 4906 requires the appeals board to approve the fee before the attorney can collect it, and the fee request is usually 15 percent to 18 percent of the settlement. Our page on what a workers' comp attorney costs explains how that works, and our guide on whether you need a lawyer covers when hiring one tends to help most, such as a denied claim, a low offer, or a dispute over future medical care.

Yazdchi Law P.C. reviews Compromise and Release offers for injured workers across California from its Palmdale office. Call (661) 273-1780 or use the contact form to ask about a free consultation. The firm reviews each matter's own facts before deciding whether to take a case.