Rehabilitation benefits can be settled in which scenario?

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

Answer: (D)

Rehabilitation benefits can be settled only when there is a good faith issue that, if resolved against the employee, would defeat the employee’s right to all benefits. In California workers’ compensation practice, a settlement (often a Compromise and Release) is appropriate when there is a genuine dispute about rehabilitation entitlement or scope, and resolving that dispute through settlement won’t deprive the employee of benefits without a real, legitimate controversy. If there’s no good faith dispute, or if the issue isn’t about potential loss of all benefits, a settlement of rehabilitation benefits isn’t the proper route. In short, the scenario described by the option is the one that triggers a legally appropriate settlement.