Stipulation

In general terms, a stipulation is something demanded by one party as part of a settlement agreement. If a workers' compensation claim is settled by stipulation it allows the injured employee to close their workers' compensation claim by accepting a certain amount of money and/or medical treatment for their injury. Some stipulated workers' compensation agreements may also allow the employee to close out or accept their final workers' compensation settlement payment and leave certain benefits open (i.e. medical benefits).

What happens if I accept a stipulated award?

Workers compensation claims can be settled through a stipulated agreement or through a Compromise and Release. The stipulated agreement is a decision which allows both parties to voluntarily agree to a settlement without the need to take the work comp case to court and wait for the judge to make their decision following a hearing or trial.

Under the stipulated award agreement, both the worker and the insurance carrier will agree to a percentage of disability and the number of weeks which must be paid for any given injury. As mentioned above, stipulated agreements can vary and may or may not provide medical care.

Advantages of a stipulated award

There are many advantages to accepting a stipulated award. First, not only will you be able to protect your rights and receive compensation, you will not have to wait for a hearing. In fact, in many cases you will not need to hire a lawyer. Instead, the Division of Workers' Compensation or the equivalent agency in your state will review the settlement offer to ensure it is fair.

Workers may also have the right to apply for additional payments if their condition gets worse within a specified time period. In some cases workers may also be allowed to request a lump sum payment if they have financial need and hardship (this option may only be available if approved by a judge).

There are, however, some disadvantages to the stipulated agreements. For example, most claimants will not receive a lump sum settlement payment but can expect to be paid every two weeks. Also, if you do not have strong legal representation it is possible to accept a disability rating which is too low and not receive fair compensation for your work injury.

Stipulated Award how is my attorney paid?

If you do decide to hire legal help for your workers' compensation case your attorney's fees for a stipulated finding and award are often "commuted" from the far end of the award. For instance, if your attorney charges 15% and your payments are for 100 weeks, you will receive 85 weeks of payment because the remaining weeks would have been paid to your work comp lawyer.