Rehabilitation benefits can be settled under which condition?

• A. Never.
• B. Where rehabilitation is complete.
• C. Where the parties reach agreement.
• 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 can be settled only when there is a bona fide dispute about the rehabilitation entitlement, and that dispute is of such a nature that, if decided against the employee, it would defeat the employee’s right to all workers’ compensation benefits. This protects the employee’s broader rights and ensures settlements resolve real disagreements rather than being used to bypass benefits.

If there’s no genuine dispute that could affect the entire benefits package, a simple agreement to settle or a situation where rehabilitation is already complete does not justify a settlement. A good-faith issue that would wipe out all benefits keeps the settlement tied to a real, material question about eligibility or scope.