During stipulation to a permanent disability award, you receive a call from a furniture company about a debt. What should you do?

• A. Refer the furniture company to the WCAB.
• B. Don't pay because the debt is not a valid lien under the Labor Code.
• C. Pay the debt from the F&A.
• D. Tell the furniture company to file a lien with the WCAB.

Answer: (D)

In workers’ compensation, third-party debts tied to a claim must go through a formal lien process handled by the WCAB. This ensures the debt is reviewed, recorded, and paid only through the established order of the lien system, preserving your rights and preventing improper payments. When a furniture company calls about a debt during stipulation, the proper step is to tell them to file a lien with the WCAB so the WCAB can determine whether the debt is valid, the amount due, and how it will be paid from the award if appropriate. Paying the debt directly or assuming the lien isn’t valid would bypass this process and could jeopardize the lien rights or misallocate benefits. The lien mechanism is the standard, legally correct route for settling such claims.