In the event that you are entitled to receive workers' compensation from your employer, you may be asked to accept a compromise and release offer. A compromise and release offer is a way for all parties (employer, employee, and insurer) to come to an agreement that bypasses courtroom hearings and holds each party responsible to the terms found in the release contract. An extended offer for compromise and release is in no way legally binding until all parties agree on the requests. The request will then be put before a Pennsylvanian judge who will determine if each member of the contract fully understands their role in the agreement.
Once the judge affirms that all parties understand their obligations, he or she will then accept the compromise and release request as a partial or total fulfillment of an employee’s workers' compensation benefit. Compromise and release offers will vary from case to case, so each offer should be reviewed with seasoned legal counsel. There are numerous factors that should be accounted for when accepting or instigating a compromise and release offer. A compromise may only cover a portion of the workers' compensation benefit and a worker may still be eligible to receive compensation for other medical bills or wage-loss benefits.
Why You May Not Want to Accept a Compromise & Release Offer
A compromise and release agreement may be created to give an edge to an insurer and disallow a worker from receiving their full entitlement. An agreement may come for a desirable amount of settlement money, but it may come through unacceptable sums (payment of $40,000 settled over a three year period). A worker may decide to extend a compromise and release offer to their employer, but they may not know what they are entitled to receive. If there is any hesitation to accept or extend a compromise and release offer, please contact our Pennsylvania workers’ compensation attorneys for a free consultation concerning your case. Do not accept a compromise that you are unsure about when it comes to workers' compensation.
We have filed thousands of workers’ comp claims in Pennsylvania and have represented injured workers since 1922. Contact Handler, Henning & Rosenberg LLC today—“One Call Does It All.”