When is settlement of vocational rehabilitation permitted?

• A. Mutual Consent
• B. Good Faith Issue
• C. Court Order
• D. Employer Approval

Answer: (B)

A settlement of vocational rehabilitation is permitted when there is a bona fide dispute—the existence of a good faith issue—about the need, scope, duration, or terms of the rehabilitation services. This means the parties actually disagree on whether further rehab is appropriate or how it should be carried out. In such cases, settling the dispute can cap costs and define the plan without ongoing litigation.

If there is no real disagreement—both sides agree on the rehab plan or its necessity—there isn’t a genuine issue to settle, so a separate settlement isn’t the appropriate path. Court involvement or employer approval isn’t the default trigger for settling rehab; a court order would come into play to resolve a dispute that isn’t settled voluntarily, and employer approval doesn’t itself create a settlement authority.