If you are dealing with a workers’ compensation claim, you may hear the term C&R and feel unsure about what it actually means. C&R stands for Compromise and Release.
It refers to an agreement where an injured worker and the insurance company agree to close a workers’ compensation case in exchange for a one-time payment.
Our Atlanta workers’ compensation lawyer at Bader Law Injury Lawyers can help further explain what a C&R is and how it applies to workers’ comp.
What Is a Compromise and Release?
A compromise and release is an agreement meant to bring a workers’ compensation claim to an end. The insurance company offers a lump sum payment, and the injured worker agrees not to pursue additional benefits for that injury.
The “compromise” means both sides are giving something up. The worker may accept less than the total potential value of the claim, and the insurance company avoids long-term payments.
The “release” means the claim is closed for good. Once it is approved, the injured worker generally cannot come back later and ask for more benefits related to that injury.
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How C&R Is Used in Workers’ Comp Cases
Georgia workers’ compensation law does not formally call settlements compromise and release agreements. Instead, they are referred to as settlements approved by the State Board of Workers’ Compensation.
Even so, many insurance adjusters, attorneys, and injured workers still use the term C&R in workers’ comp cases. When you hear it in Georgia, it usually means a full and final settlement.
What matters most is not the name, but the effect. Accepting this type of agreement usually means your workers’ compensation case will be permanently closed. Our team can help you further understand what a C&R means in your workers’ comp case.
What Happens After You Accept a C&R?
Once a settlement is approved, your workers’ compensation claim comes to an end. Weekly income benefits usually stop, and the insurance company’s obligations are limited to what is written in the agreement.
In many cases, future medical treatment for your work injury is no longer covered. This is one of the biggest consequences injured workers face after accepting a settlement.
Since the case is closed, you typically cannot reopen it later, even if your condition worsens or you need more treatment than expected.
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Does a C&R Always Close Medical Benefits?
No, not every settlement automatically closes medical benefits. In Georgia, settlements can be structured in different ways depending on the agreement reached.
Some settlements close both wage benefits and medical care entirely. Others may leave medical benefits open for a certain period or under specific conditions.
Understanding how medical benefits are handled is important. Once medical coverage is closed, future treatment related to your injury usually becomes your responsibility.
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Why Injured Workers Consider a C&R
Many injured workers consider a C&R in workers’ comp cases because they want certainty. Weekly benefits can feel unstable, especially when payments are delayed or questioned by the insurance company.
Others may want flexibility. A lump sum payment can help cover ongoing expenses or provide financial breathing room during recovery.
In some cases, workers are simply exhausted by the process. After months or years of disputes, medical exams, and paperwork, a settlement can feel like a way to move forward. We can help you understand whether a C&R is right for your workers’ comp case.
When a C&R Is Typically Discussed
C&R discussions usually happen later in a workers’ compensation case. By that point, doctors often have a clearer understanding of the injury and long-term outlook.
Many settlements are discussed after an injured worker reaches maximum medical improvement (MMI). This means the condition is not expected to improve significantly with more treatment.
At this stage, both sides can better estimate future costs, which often leads to settlement conversations.
How Settlement Amounts Are Evaluated
There is no fixed formula for determining a C&R amount in Georgia. Each case is evaluated based on its own facts and risks. Factors that often influence the value include:
- The severity of the injury
- Whether the worker can return to their job
- The amount of weekly benefits owed
- Expected future medical costs
Insurance companies calculate what they believe the claim could cost over time and usually offer less than that amount in a lump sum.
Judge Approval in Georgia Workers’ Compensation Settlements
All workers’ compensation settlements in Georgia must be reviewed and approved by the State Board of Workers’ Compensation. This step is required before the agreement becomes final.
The judge reviews whether the injured worker understands the agreement and its consequences. The goal is to prevent clearly unfair or misleading settlements.
Once the judge approves the settlement, it becomes binding. At that point, the workers’ compensation claim is officially closed.
Risks to Consider Before Accepting a C&R
A C&R can provide relief, but it also carries long-term risks. Accepting a lump sum means trading future protections for immediate payment.
Some of the most common risks include losing access to medical care and underestimating how long recovery will take. Medical needs often last longer than expected.
Since settlements are final, it is important to think beyond the short term and consider how the agreement may affect you years down the road.
How Bader Law Injury Lawyers Helps Injured Georgia Workers
Bader Law Injury Lawyers helps injured workers across Georgia understand the workers’ compensation system and the choices they face. That includes explaining what a C&R means and how it may affect your future.
Our role is to provide clear answers so you can make informed decisions. Our team of lawyers focuses on helping workers understand their rights and options at every stage of the claim.
If you have questions about a workers’ compensation settlement or have been offered a C&R, getting reliable information can help you move forward with confidence.
Learn More About What a C&R Means in Your Workers’ Comp Case
At Bader Law Injury Lawyers, we understand how difficult it can be to make the right decision for yourself after a work injury. Our team of workers’ compensation lawyers can help you with this process.
Contact us for a free consultation.
Call or text (404) 888-8888 or complete a Free Case Evaluation form
