What Is a Claim Resolution Settlement Agreement?
A claim resolution settlement agreement (CRSA) is an L&I settlement option where all parties agree to close an injury claim for a specified amount. When agreeing to a CRSA, the injured worker exchanges all future L&I benefits, except medical, in exchange for a lump-sum or structured payment.
Self-insured employers (SIEs) are more likely to use CRSAs. The most common reason for this is to save money, and will, unfortunately, make it more difficult for you to get your compensation. The SIE will do everything in its power to deny it. However, they still need to follow the established rules created by the Department of Labor and Industries (L&I) for self-insured companies.
Who Is Eligible for an L&I Settlement?
Not every worker or claim qualifies for a CRSA. Eligibility depends on factors such as the worker’s age, claim status, and ability to return to employment.
- You must be over the age of 50
- Your claim must be open and allowed
Younger workers are typically excluded from CRSA eligibility due to the long-term impact of closing future benefits.
How CRSA Payment Amounts Are Determined
The two biggest factors that determine the value of your CRSA settlement amount are:
- Having a higher-than-average medical claim cost, and
- Earning a higher-than-average working wage at the time of workplace injury.
Unlike personal injury cases, CRSA payments are not based on pain and suffering. Instead, the settlement value reflects a calculation of potential future workers’ compensation benefits that would otherwise remain payable.
Claim Resolution Settlement Agreement Process
Claim Resolution Settlement Agreement discussions can be started by the injured worker, the employer, or L&I, and all parties will negotiate the specific terms of the settlement. If all parties agree on these terms, L&I will draft the settlement contract, circulate it for signatures, and send the contract to the Board of Industrial Insurance Appeals (BIIA) for approval.
If the BIIA approves the agreement, there is a 30-day revocation period meaning that any party may revoke consent to the settlement for any reason during that time frame. However, L&I will continue to manage the claim and pay all benefits to which the worker is entitled throughout the revocation period.
Finalizing the Claim Resolution Settlement Agreement
The CRSA becomes final when the 30-day revocation period ends. Payment begins within 14 days after the agreement is final. The claim is considered closed after the 30-day revocation period ends.
Can I Reopen My Washington State L&I Claim after a CRSA?
If your workplace injury or industrial disease worsens, you and your doctor may apply to reopen your claim. There must be medical evidence from an L&I-approved provider stating that after your claim closed, the condition caused by the original workplace injury worsened and needs more medical attention.
The amount of time that you have to reopen your Washington state L&I claim depends on the benefits you are seeking:
- For medical treatment only, you may apply at any time.
- For both wage replacement benefits and medical treatment, apply within 7 years of the date your claim was first closed (10 years for eye injuries).
- If your claim has been closed for more than 7 years, you may apply for medical benefits. However, only the L&I Director may grant additional disability benefits such as wage replacement or disability awards for these claims.
Can I Protest My Settlement Amount?
You, your employer, and your doctor all have the right to protest any decision made about your claim. You may also appeal directly to the Board of Industrial Insurance Appeals (BIIA).
L&I must receive a written protest within 60 calendar days of the date the decision was received (15 days for decisions about vocational benefits). The decision is final.
CRSAs vs. Permanent Partial Disability (PPD) Awards
In some cases, a claim may close with a permanent partial disability (PPD) award instead of a settlement. PPD awards provide compensation for permanent impairment but allow the claim to progress through the normal closure process.
Choosing between a PPD award and a CRSA involves careful evaluation of long‑term financial needs and future benefit exposure.
CRSAs and Disability Pensions
Workers who may qualify for an L&I disability pension should be especially cautious when considering a settlement. Accepting a CRSA eliminates the possibility of a future pension, which could otherwise provide lifetime benefits.
Because pension eligibility can dramatically affect long‑term financial security, CRSAs require particularly careful review in serious workplace injury cases.
Pros and Cons of Claim Resolution Settlement Agreements
CRSAs can offer certainty and immediate payment, but they are not always in a worker’s best interests.
Potential benefits may include:
- Faster financial resolution
- Avoiding prolonged disputes with L&I
- Certainty about the outcome
Potential drawbacks may include:
- Loss of future time-loss or wage‑replacement benefits
- Reduced access to long‑term medical care
- Ineligibility for future disability pensions
Each settlement must be evaluated based on the worker’s unique circumstances.
