Vocational Rehabilitation may be settled under which condition?

• A. All parties are in agreement
• B. The employee could lose the case
• C. There is a good faith issue which if resolved against the injured employee would defeat the employee’s right to all benefits
• D. Never

Answer: (C)

Vocational rehabilitation settlements are allowed only when there is a genuine good faith dispute about the rehabilitation entitlement or its terms, and resolving that dispute unfavorably to the employee would defeat the employee’s right to all benefits. In other words, the settlement is appropriate only if there’s a real controversy that, if decided against the employee, would wipe out the employee’s eligibility for benefits. This protects the employee’s overall rights and ensures the settlement isn’t used to sidestep a valid claim. Simply because the parties agree or because the employee might lose a case isn’t by itself a sufficient basis for a VR settlement. Never is incorrect because settlements can occur under the right circumstances.