What Is 8 CCR §10700: Approval of Settlements?

The Workers' Compensation Appeals Board shall inquire into the adequacy of all Compromise and Release agreements and Stipulations with Request for Award, and may set the matter for hearing to take evidence when necessary to determine whether the agreement should be approved or disapproved, or issue findings and awards.

What Is 8 CCR §10700?

It is the rule that stops a signed settlement from paying out on its own. The WCAB has to review it first.

You and the insurance company may agree on a settlement. That deal does not become final just because both sides signed it. Section 10700 requires a workers' compensation judge, acting for the WCAB, to check the paperwork behind the agreement. The judge decides whether it is fair before approving it. That holds true whether you have a lawyer or not. It also holds true whether the settlement is a lump sum C&R or a Stipulated Award paid over time.

What must be filed with a Compromise and Release or Stipulated Award?

The signed agreement is not enough on its own. The party filing it must also turn in the reports that support it.

Subdivision (a) names who has to do this. Whoever files the settlement, usually the claims administrator or its attorney, must also file the medical reports behind it. That includes any agreed medical evaluator (AME) report tied to your claim. It includes any qualified medical evaluator (QME) report, too. It also includes any treating physician report. One more category counts as well: any other report relevant to the deal's fairness, as long as it has not already been filed. An AME is a doctor both sides pick together. A QME is a doctor assigned through the state's evaluator process when the parties cannot agree. Your treating physician is the doctor who manages your care. The judge is supposed to see this full medical picture. Not just the dollar figure both sides agreed to.

What does the WCAB look at before approving a settlement?

It inquires into the adequacy of the deal, and it can hold a hearing if something needs a closer look.

Subdivision (b) is the heart of this regulation. The WCAB does not simply stamp a settlement once it sees two signatures. It has to inquire into the adequacy of the agreement. That means it has to form its own view. Is the deal fair, given your injury, your medical reports, and your wage? If something about the deal raises a question, the judge can set it for a hearing. The judge can take evidence instead of deciding on the paperwork alone. The outcome is not limited to a simple yes or no, either. The judge can approve the deal, disapprove it, or issue findings and an award instead of accepting the agreement as written.

When does a settlement get extra scrutiny?

A deal that pays less than full value and releases the employer from future liability faces a stricter test.

Subdivision (c) does not name the Compromise and Release. A C&R is usually written this exact way, though. It pays a lump sum. It releases the employer from all future liability on the claim. Say a settlement does both of those things. It pays less than the full amount of compensation that is due, or that could become due later. Section 10700(c) allows approval in that situation only in two cases. A reasonable doubt must exist about the parties' rights. Or approval must be in the best interest of the parties. In plain terms, the judge wants a real reason for the lower number. One example is a genuine dispute over whether the injury is work related. Another is a clear benefit to you in taking the lump sum now.

How does 8 CCR 10700 connect to other settlement rules?

This regulation puts into practice the Labor Code's own rule that the board must approve a settlement before it counts.

Labor Code section 5001 is the source of the approval requirement itself. No release of liability or compromise agreement is valid unless the WCAB approves it. Labor Code section 5002 requires a signed copy of the agreement to be filed with the board. It also lets the board enter its own award once that filing is approved. Labor Code section 5702 covers a related path. The parties file a stipulation of facts and ask the board to decide the matter on that record, or set it for a hearing instead. Section 10700 is the regulation that spells out what the board actually checks to carry out all three.

What should you do before your settlement goes to the judge?

Confirm that every medical report behind the deal has already been filed, and be ready to answer questions if the judge sets a hearing.

Keep your own copies of any AME, QME, or treating physician reports you have received. Ask your attorney or the claims administrator to confirm, in writing, that those reports have gone to the WCAB with the signed agreement. If your settlement pays a lump sum and closes out future liability, be ready to explain why the amount is fair for your case. Our guide to the Compromise and Release form walks through what the signed document itself must say. Our guide on when workers' comp offers a settlement covers the steps that come before you reach this review.

Getting help with a California workers' comp settlement

Yazdchi Law P.C. reviews settlement paperwork and the medical evidence that supports it, from its office in Palmdale.

A settlement offer might look low. A hearing might be set on your Compromise and Release. You might not be sure which reports still need to be filed. In any of these cases, call (661) 273-1780 or use the contact form for a free consultation. The firm reviews each matter on its own facts before deciding whether to take it on. A workers' comp attorney in California is usually paid a share of the settlement, often in the 15 to 18 percent range. A workers' compensation judge must approve that fee under Labor Code section 4906 before it is paid. See the attorney cost guide for more on how that works. Once your Compromise and Release is approved, the WCAB issues a signed order. Our guide to the Order Approving Compromise and Release explains what that order means and when payment is due.