What is a stipulated award? It is one of the two main ways a workers’ compensation case gets settled, and it may be the choice that protects you most if you are still hurt. In plain English, a stipulated award is a written agreement between you and the insurance company about what your claim is worth.
You both “stipulate” — meaning you agree — to the facts: your date of injury, the body parts hurt, your permanent disability percentage, and the money you are owed. A workers’ comp judge then signs off on it. The key thing to know is that a stipulated award pays you over time and keeps your future medical care open. If you are worried about ongoing pain and future doctor bills, this matters a great deal.
What is a stipulated award, and how is it different from a lump sum?
When you settle a workers’ comp claim, you usually pick between two paths. A stipulated award, often called “stips,” is one. A compromise and release (C&R) is the other. Understanding the difference protects your health and your wallet.
With a stipulated award, you agree on your permanent disability (PD) rating. That is the percentage a doctor assigns once you reach MMI — maximum medical improvement, the point where your condition is as good as it will get. You then receive your PD money in regular checks, usually every two weeks, not one lump sum. Just as important, your right to future medical treatment for the injured body parts stays open. In California, that lifetime care is protected under Labor Code Section 4600.
A compromise and release works the other way. You take one lump-sum check and the case closes for good — including your future medical care. For example, if you never want to deal with the insurer again and can pay your own doctor bills, a C&R may fit. However, if your injury may get worse, a stipulated award often protects you better because the medical door stays open.
The exact figures: what a stipulated award pays
Your payment depends on your permanent disability rating and your average weekly wage (AWW) — your typical pay before the injury. In most cases, PD is paid at two-thirds of your AWW, up to a state cap. These caps change every year, so always confirm the current figure with your state workers’ compensation board.
For example, in California for 2026, the permanent disability rate is capped at $290 per week for ratings between 1% and 69.75%, with a $160 minimum. For ratings of 70% and above, the cap rises to $435 per week, and you may also qualify for a lifetime pension under Labor Code Section 4659. Here are a few real figures to compare.
| Figure (2026) | Amount / Rule | State |
|---|---|---|
| PD weekly max (rating under 70%) | $290 per week | California |
| PD weekly max (rating 70%+) | $435 per week | California |
| Permanent total disability weekly max | $1,764.11 per week | California |
| Permanent partial disability weekly max | $1,222.42 per week | New York |
| Right to reopen for worsening injury | Within 5 years of injury date | California |
Notice the reopening window. Typically, a stipulated award lets you file a Petition to Reopen if your condition gets worse. In California, you generally have five years from the date of injury to do this. That safety net does not exist with most lump-sum deals. As a result, many California claimants who expect future flare-ups lean toward stips. Remember, these settlement estimates are illustrative, and every case is different.
What to do next if you are offered a stipulated award
First, do not sign anything the day it lands in front of you. Read the numbers slowly. Check that the PD percentage, the body parts listed, and the weekly rate match what your doctor and your own records say. A wrong body part or a low rating can cost you thousands.
Second, confirm your future medical care is clearly protected. A stipulated award should keep treatment open for the injured body parts. If the paperwork is vague, ask for it in writing. For example, many workers assume care is covered, then find out a term was missing. Do not assume — verify.
Third, compare the two paths honestly. If your injury is stable and you want to move on, a compromise and release may serve you. If you still hurt, still need doctors, or fear the injury will worsen, a stipulated award usually protects you more. Because this choice is final and binding, confirm the details with your state board and a licensed attorney before you agree. You may be entitled to more than the first offer, so it is worth slowing down.
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Frequently Asked Questions
Is a stipulated award better than a lump-sum settlement?
It depends on your health. In most cases, a stipulated award is better if you still need medical care, because treatment stays open and you can reopen the case if you get worse. However, a lump sum may fit if your injury is stable and you want to close the claim.
Can I reopen my case after a stipulated award?
Typically, yes. For example, in California you generally have five years from your date of injury to file a Petition to Reopen if your condition worsens. As a result, many claimants choose stips for that protection. Confirm your state’s deadline with the board.
How long do the payments last with a stipulated award?
Your permanent disability money is paid in installments until the total owed for your rating is paid out. The number of weeks depends on your PD percentage. Because state caps change every year, confirm the current weekly figure with your state workers’ compensation board.
Not Sure Where You Stand?
If your claim was denied, your benefits stopped, or a settlement offer feels low, it is worth having a workers’ comp attorney look at it. Most give a free consultation and work on contingency — so there is usually nothing upfront.
Advertising — not a referral, endorsement, or legal advice.
Sources & How to Verify
This guide is built from official government and industry sources. Workers’ comp figures, deadlines, and state rules change every year, so always confirm the exact figure with your state board or a licensed attorney:
- Your state workers’ compensation board / division: the first and most authoritative source for your state’s caps, deadlines, and rules.
- U.S. Department of Labor: dol.gov — the directory of state workers’ comp officials.
- NCCI: ncci.com — workers’ comp rating and benefit data.
- Social Security Administration: ssa.gov — SSDI offset and benefit-cap data.
- Insurance Information Institute: iii.org — neutral coverage and claims data.
Verified July 2026. State maximum weekly benefits change every year — if you spot anything outdated, please contact us.
Related Guides
- The Complete Guide to Workers’ Comp Settlements
- Workers’ Comp Settlements by State
- Workers’ Comp Benefits Explained (TTD, PPD, MMI)
- Your Rights at Work — Common Scenarios
- Plain-English Workers’ Comp Glossary
Disclaimer. This page is for general information only and is not legal, medical, or financial advice, and it does not create an attorney-client relationship. Workers Comp Explained is an independent educational resource, not a law firm, insurer, or medical provider. Benefit caps, deadlines, and rules vary by state and change every year, and any settlement figure is an illustration, not a prediction. For your situation, confirm the exact figure and any deadline with your state workers’ compensation board and a licensed attorney before you act.