What must occur for a Compromise and Release (C&R) to be valid?

• A. Approval by the appeals board or referee.
• B. Signature by the employee only.
• C. Approval by the employer.
• D. Court filing only.

Answer: (C)

A Compromise and Release becomes binding only when a neutral authority reviews and approves it, ensuring the settlement is voluntary, fair, and appropriate given the worker’s disability. In California workers’ compensation, that means the agreement must be approved by the Workers’ Compensation Appeals Board (or a workers’ compensation judge). The employee must sign (and is usually represented by counsel), and the employer must agree to the terms, but the employer’s approval alone does not finalize the settlement. Filing with the court or board is part of the process, but the key step that makes the C&R valid is the formal approval by the board or judge.