Rehabilitation benefits can be settled under which condition?

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

Answer: (A)

Rehabilitation benefits can be settled only when there is a bona fide good faith dispute about the rehabilitation itself that, if decided against the employee, would defeat the employee’s right to all benefits. This protects the employee by ensuring that a settlement of rehab benefits is only allowed when there’s a real dispute that could affect the scope of benefits. If rehab isn’t in dispute or is already complete, there isn’t a basis for a settlement. Likewise, simply reaching an agreement without a genuine dispute isn’t sufficient.