Under rehabilitation benefits, rehabilitation benefits can be settled only when:

• A. Never.
• B. Where rehabilitation is complete.
• C. Where there is a good faith issue which, if resolved against the injured employee, would defeat the employee's right to all benefits.
• D. Where the parties reach agreement.

Answer: (C)

Rehabilitation benefits are intended to help an injured employee return to suitable employment and maintain overall compensation. The only permissible settlements of those benefits happen when there is a bona fide dispute about rehabilitation that, if decided against the employee, would destroy the employee’s right to all benefits. In other words, the settlement is allowed only if resolving the rehab issue could strip the worker of their entire compensation package, so there’s a real, material dispute at stake.

This protects the employee from giving up future rights for a narrow rehab agreement. If there isn’t a genuine dispute that could affect all benefits, there’s no proper basis to settle rehab benefits.