Workers Compensation (ADR)

What is a Carve-out?

A “carve-out” or ADR program is a program set up in California, usually through a collective bargaining agreement.  The carve out process is intended to be an alternative to the “standard” California worker’s compensation process. Such programs are often promoted as a less litigious process that can allegedly benefit all parties. However, for the injured employee  a “carve-out” program can sometimes be less than ideal.  Some would argue that in certain cases ADR can actually benefit the employer and insurer more than the injured worker.

How does a Carve-out Program Work?

There are numerous California worker’s compensation carve-out programs. The programs have their own ombudsperson, their own culture and a unique set of rules which must adhere to California law. Some programs may discourage attorney participation and imply that legal counsel may not be necessary. Many worker’s thus find themselves in a situation where they are without an advocate and have no idea of their rights or the tactics the insurance company will use to lower the value of the claim and the benefits available to the worker. The programs often state that they still protect worker’s substantive rights but without out knowledge of those rights many injured workers find themselves holding the short end of the stick.