What Is California Labor Code §5002: Filing and Entry of Award?

A copy of the release or compromise agreement signed by both parties shall forthwith be filed with the appeals board. Upon filing with and approval by the appeals board, it may, without notice, of its own motion or on the application of either party, enter its award based upon the release or compromise agreement.

What does Labor Code 5002 actually require?

This law does two things. It tells the parties to file a signed settlement with the board right away, and it lets the board turn that filed, approved agreement into its own award.

A California workers' comp settlement is not final just because both sides signed it. Labor Code 5001 already requires a workers' compensation judge to approve a release or compromise agreement before it counts. Section 5002 picks up from there. First, it tells the parties to send a signed copy of that agreement to the Workers' Compensation Appeals Board promptly, not whenever it suits them. Second, once the board has that filed copy and has approved it, this law lets the board turn the agreement into an award. The award is what actually makes the deal enforceable, in the same way a judgment does in a civil case.

This rule applies to any worker and insurer who sign a release or compromise agreement to end a disputed workers' comp claim. The settlement can be a lump-sum Compromise and Release, or it can be a Stipulated Award that pays over time; our Labor Code 5001 guide explains why both fall under this same part of the law. The rule applies whether or not a worker has a lawyer, though a claims administrator's attorney usually handles the actual paperwork.

How does filing actually work once you sign a settlement?

In most cases, whichever attorney prepared the paperwork also sends the signed agreement to the board, often within days.

The statute says the agreement must be filed "forthwith." That is an old word for promptly, without unnecessary delay, and the law does not set an exact number of days. In practice, the claims administrator's attorney usually prepares the agreement, since that side holds the wage and payment records it needs, and the same attorney typically sends it to the board along with any medical reports the rules require. If an attorney represents you, your attorney can confirm the filing date. If you do not have one, ask the claims administrator, or the Information and Assistance Unit at your local DWC office, whether the signed agreement has actually reached the board. A settlement that sits signed but unfiled has not started the clock toward an award.

What does it mean for the board to act "without notice" or "of its own motion"?

It means the board does not have to warn you before it enters the award, and it does not have to wait for you to ask.

Once the paperwork is filed and the board approves it, Labor Code 5002 lets the board enter its award in three ways. It can act without giving either side advance notice. It can act of its own motion, meaning a judge moves the case along without anyone requesting it. Or it can act on the application of either party, meaning you, your attorney, or the other side can ask the board to enter the award. This is different from a contested hearing. Once that filing is approved, the board does not need to hold a separate hearing just to enter the award. A judge can still ask questions about the deal's fairness before approving it in the first place; our guide to the Order Approving Compromise and Release covers that review step in more depth.

How does Labor Code 5002 connect to the rest of the settlement process?

Section 5002 sits between the approval rule and the paperwork rule, right before the signed order that pays you.

This provision sits inside the same chapter of the Labor Code as the rest of the settlement process. Labor Code 5001 sets the approval requirement itself, the rule this filing step depends on. A separate law lists exactly what the signed agreement has to say, such as the wage, the dates, and any lien; our Compromise and Release form guide walks through that checklist in full. Once the board actually enters the award under this law, the result is the order our guide to the Order Approving Compromise and Release explains. From that point forward, Labor Code 5800 can add interest on anything left unpaid, and Labor Code 5814 can add a penalty for an unreasonable delay. Each of these laws covers one piece of the same path from a signed agreement to a paid settlement.

What should you save or ask while you wait for the award to be entered?

Keep a copy of the signed agreement and ask when it was actually filed.

Once both sides sign, a few simple steps help you track what comes next:

• Write down the date both sides signed the agreement.
• Ask your attorney, or the claims administrator, the exact date it reached the board.
• Keep your own signed copy, along with any letter or email about the filing.
• If weeks pass with no word, ask your attorney to check the case status, or contact the board's Information and Assistance Unit if you do not have an attorney.

Once you know it has cleared both steps, you can also ask whether your attorney's fee was approved at the same time. Labor Code 4906 requires that approval before an attorney can collect a fee. For the steps that come before you ever reach this stage, see our guide to the California workers' comp claim process.

If your settlement has been signed but you are not sure whether it has been filed, approved, or turned into an award, a short call can confirm where things stand. Call (661) 273-1780 or use the contact form for a free consultation. The firm reviews each matter individually and does not take every case.