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Utah Administrative Code (Current through November 1, 2019) |
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R602. Labor Commission, Adjudication |
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R602-6. Procedures Applicable for Approval of Settlement Agreements in Workers' Compensation |
| R602-6-1. Statutory Authority |
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Section 34A-2-420 requires the Commission to review all agreements for the settlement or commutation of claims for workers' compensation or occupational disease benefits and grants the Commission discretion to approve such agreements. The Commission's authority under Section 34A-2-420 applies to all claims arising under the Utah Workers' Compensation Act or Occupational Disease Act, regardless of the date of accident or occupational disease. This rule sets forth the requirements for Commission approval of such agreements. |
| R602-6-2. Applicability of Rule |
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This Rule applies to settlements of all claims under the Workers' Compensation Act. |
| R602-6-3. General Considerations |
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Settlement agreements may be appropriate in claims of disputed validity or when the parties' interests are served by payment of benefits in a manner different than otherwise prescribed by the workers' compensation laws. However, settlement agreements must also fulfill the underlying purposes of the workers' compensation laws. Once approved by the Commission, settlement agreements are permanently binding on the parties. The Commission will not approve any proposed settlement that is manifestly unjust. |
| R602-6-4. Procedure |
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A. Parties interested in a present or potential workers' compensation claim, whether or not an application for hearing has been filed, may submit their settlement agreement to the Commission for review and approval. The Commission may delegate its authority to review and approve such agreements. B. Each settlement agreement shall be in writing, executed by each party and such party's attorney, if any, and shall include a proposed order for Commission approval of the agreement. C. Each settlement agreement shall set forth the nature of the claim being settled and what claims are in dispute, if any. D. Each settlement agreement shall contain a statement that each party understands that the agreement is permanent, binding and constitutes full and final settlement of any right the claimant may otherwise have to future benefits, including medical benefits. The Commission may establish an approved form for complying with the foregoing disclosure requirement. E. Attorney's fees shall be allowed as provided by Rule R602-2-4. Each settlement agreement shall describe the amount to be paid to claimant's counsel as attorney's fees and costs, the manner in which such amounts are computed and the method of payment thereof. F. The settlement agreement may provide for payment of benefits through insurance contract or by other third parties if the Commission determines: a) such payment provisions are secure, and b) such payment provisions do not relieve the parties of their underlying liability for payments required by the agreement. G. Upon receipt of a proposed settlement agreement meeting the requirements of this rule, the Commission shall review such proposed agreement. H. As needed, the Commission may contact the parties and others to obtain further information about the proposed settlement. I. If the Commission determines that a proposed settlement agreement conforms with this rule, the Commission shall approve such agreement and notify the parties in writing. J. If the Commission determines that a proposed settlement agreement does not comply with this rule, the Commission shall notify the parties in writing of its reasons for rejecting the proposed agreement. K. The Commission shall retain a record of its action on all settlement agreements submitted to it for approval. |