Paid to resign?
4 attorney answers
The insurer doesn't want you returning to this employer and filing a new claim, or anythine else, ever. Sometimes I don't let my client resign because they are surrendering $12,000 in benefits from the Employment Development Dept. they won't get as Unemployment checks while they look for a new job. So if the settlement has extra dollars adding up to one year of Unemployment Checks, you can resign. But if they just want to close out future medical and insist on a voluntary resignation without a lot of extra dollars, just tell your lawyer "No thank you".
The insurance company technically is not paying your to resign, they are but in legalese by saying they can not settle your future medical award if you continue to work there. This is for a practical reason. They are still the insurance carrier for your employer. If they settle your future medical now, and you are reinjured, they will then have to pay for your medical treatment under the new injury, despite "buying out" their liability for your medical care under the old injury.
It is very common. In every case I ever worked on, if the insurance company was still "on the risk" for your employer they would not settle an award of future medical treatment without a resignation.
Now, bear in mind that the California law changed in 2019. While you can voluntarily resign as part of your settlement, any agreement that you will not reapply is invalid and your employer can not refuse to rehire you due to your resignation. They can refuse to hire you due to your disabilities if they can not reasonably accommodate. I have had some cases where an injured worker was rehired, after a resignation and settlement, only to have a subsequent injury. The insurance company was not happy, but they still had to cover the injury.
Good luck to you. You do not have to resign, and just keep your future medical award open, if you really like where you are working. You won't get a lump sum of money in your pocket, but it is also hard to find a good employer out there.
Top Contributor 2021
Top Contributor 2020
Top Contributor 2019
Top Contributor 2018
Top Contributor 2017
Top Contributor 2016
Top Contributor 2015
Top Contributor 2014
Top Contributor 2013
Top Contributor 2012
I see it all the time. The insurance company would prefer that you quit so that you cannot file another claim against them in the future while working for this insured, your employer. Your employer may actually prefer to keep you. If so, see if you can get someone at the employer to go to bat for you with the carrier.
This answer is intended as general information and not as specific legal advice.