What is a Compromise and Release (C&R) and when is it used?

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Multiple Choice

What is a Compromise and Release (C&R) and when is it used?

A Compromise and Release is a full, final settlement of a workers’ compensation claim. It resolves every issue in the claim—liability, benefits, and, if the parties choose, future medical rights—with the terms reviewed and approved by the Rhode Island Workers’ Compensation Court. This court involvement ensures the deal is fair and that the employee understands what rights are being released or reserved. It’s used when both sides want finality and a predictable resolution, typically in exchange for a lump-sum (or structured) payment and a waiver of ongoing benefits, including future medical care if that right is included in the agreement. It is not a temporary payment plan, not automatic after a year, and it cannot proceed without court approval.

A Compromise and Release is a full, final settlement of a workers’ compensation claim. It resolves every issue in the claim—liability, benefits, and, if the parties choose, future medical rights—with the terms reviewed and approved by the Rhode Island Workers’ Compensation Court. This court involvement ensures the deal is fair and that the employee understands what rights are being released or reserved. It’s used when both sides want finality and a predictable resolution, typically in exchange for a lump-sum (or structured) payment and a waiver of ongoing benefits, including future medical care if that right is included in the agreement. It is not a temporary payment plan, not automatic after a year, and it cannot proceed without court approval.

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