Rehabilitation benefits can be settled under which condition?

• A. Never
• B. Where the parties reach agreement
• C. Where rehabilitation is complete
• D. Where there is a good faith issue which, if resolved against the injured employee, would defeat the employee's right to all benefits

Answer: (D)

Rehabilitation benefits are settled only when there is a bona fide dispute about their eligibility, and that dispute is significant enough that, if resolved unfavorably for the employee, it would defeat the employee’s right to all benefits. This ensures a fair resolution: the parties can settle the rehab issue to close that part of the claim without dragging on a dispute that could jeopardize the entire benefits package. If rehab is not in dispute, or if settling wouldn’t affect the overall entitlement, a settlement isn’t appropriate. That’s why the correct scenario is a good faith issue about rehabilitation that, if resolved against the employee, would wipe out the employee’s right to all benefits.