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HomeLabor CodeDiv. 4Pt. 3Ch. 2§ 5005 Occupational Disease Claim Settlements

§ 5005 Occupational Disease Claim Settlements

Labor Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 5005 Occupational Disease Claim Settlements

Key Takeaways

  • •If a worker gets sick or hurt over time because of their job, they can make a deal with their boss or the boss's insurance to settle part or all of their claim.
  • •This deal must be approved by a special board. Once approved, the worker can't ask for more money from that boss or insurance for the part of the claim that was settled.
  • •If the worker settles with one boss but has other bosses who might also be responsible, they can still go after those other bosses for the parts not covered in the deal.
  • •If the worker goes after the other bosses later, the amount of money the first boss paid in the deal will be subtracted from what the other bosses might have to pay.

Example

A construction worker gets lung disease after working for many years at different companies. He makes a deal with one company to settle part of his claim.

The worker can still ask other companies he worked for to pay for the rest of his sickness. But if he gets money from them later, the amount he already got from the first company will be taken out of what the others have to pay.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 5005 Occupational Disease Claim Settlements

In any case involving a claim of occupational disease or cumulative injury, as set forth in Section 5500.5, the employee and any employer, or any insurance carrier for any employer, may enter into a compromise and release agreement settling either all or any part of the employee’s claim, including a part of his claim against any employer. Such compromise and release agreement, upon approval by the appeals board or a referee, shall be a total release as to such employer or insurance carrier for the portion or portions of the claim released, but shall not constitute a bar to a recovery from any one or all of the remaining employers or insurance carriers for the periods of exposure not so released. In any case where a compromise and release agreement of a portion of a claim has been made and approved, the employee may elect to proceed as provided in Section 5500.5 against any one or more of the remaining employers, or against an employer for that portion of his exposure not so released; in any such proceeding after election following compromise and release, that portion of liability attributable to the portion or portions of the exposure so released shall be assessed and deducted from the liability of the remaining defendant or defendants, but any such defendant shall receive no credit for any moneys paid by way of compromise and release in excess of the liability actually assessed against the released employments and the employee shall not receive any further benefits from the released employments for any liability assessed to them above what was paid by way of compromise and release. In approving a compromise and release agreement under this section, the appeals board or referee shall determine the adequacy of the compromise and release agreement as it shall then reflect the potential liability of the released exposure after apportionment, but need not make a final actual determination of the potential liability of the employer or employers for that portion of the exposure being released. (Added by Stats. 1974, Ch. 1164.)

Last verified: January 21, 2026

Key Terms

liabilityagreementinsuranceportappealemployeremployeedefendant

Related Statutes

  • § 1455 Domestic Worker Labor Outreach
  • § 2800.2 Employer Conversion Coverage Notification
  • § 4850.4 Disability Pension Payment Exceptions
  • § 1160.11 Employer Appeal Bond Requirement
  • § 204 Employee Wage Payment Schedule

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Labor Code. Section 5005.
View Official Source