Can I Get a Lump Sum Settlement for Workers’ Comp in California?

 Posted on October 02, 2025 in Workers' Compensation

You can get a lump sum settlement for a workers’ compensation claim in California. However, you will not automatically receive it. Whether this is the right choice depends on your medical needs, financial situation, and the details of your injury. Our experienced Gilroy, CA workers’ compensation lawyers can help you understand whether a lump sum settlement is the best option for you.

How Does a Lump Sum Settlement Work for Workers’ Compensation?

In California, a lump sum settlement is called a Compromise and Release. This type of agreement closes your case in exchange for one payment from the insurance company. Once it is approved by a workers’ compensation judge, you no longer receive weekly disability checks or medical care through the claim. Instead, you get the full amount in a single payment.

California law, under Labor Code § 5000, allows these settlements between an injured worker and the employer’s insurance company. Before it becomes final, the Workers’ Compensation Appeals Board (WCAB) must review the agreement to make sure it is fair. They want to ensure that you do not settle for less than what you deserve during an already stressful time.

What Is a Structured Settlement for a California Workers’ Comp Claim?

Not every settlement comes as one big check. A structured settlement spreads payments out over time. This can give you a steady income stream. According to the California Labor Code, workers’ comp benefits are usually paid in installments. A structured settlement works the same way, except the payments come as part of a final agreement instead of open-ended benefits. Many workers prefer this choice because it provides financial stability for the future. It also avoids the challenge of managing one large lump sum on your own.

Can You Choose Between a Lump Sum or a Structured Settlement for a Workers’ Compensation Claim?

In California, you are entitled to choose between lump sum or structured settlements. The right choice depends on your health, your treatment needs, and your financial situation. For example, if you still need medical care, a lump sum settlement may not be the best idea. On the other hand, if your medical care is complete and you need funds right away, a lump sum might be a better fit.

Because of these rules, you should talk to a workers’ compensation attorney before signing a settlement. Insurance companies may push for a quick deal, but what seems wise at first may not cover your long-term needs. An attorney can explain your options and help you make the choice that works best for you.

Contact a Santa Clara County, CA Workers’ Compensation Attorney Now

Workers’ compensation cases can be complicated, and you cannot rely on insurance companies to do what is best for you. Having an experienced advocate on your side ensures your rights are protected throughout the workers’ compensation process.

For nearly 30 years, Cramer + Martinez has been dedicated to helping injured workers in Gilroy and the surrounding communities. Our attorneys have over 20 years of combined experience with California workers’ compensation cases. We guide injured workers in Santa Clara County through every step, from filing a claim to reaching a fair settlement. If you are thinking about a settlement for your work injury, contact our experienced Gilroy, CA workers’ compensation lawyers today at 408-848-1113. We offer services in Español.