California Codes

Cal. Labor Code § 3859 (2026)

✓ current as of May 2026
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(a)(1)Except as provided in paragraph (2), a release or settlement of any claim under this chapter as to either the employee or the employer is not valid without the written consent of both. Proof of service filed with the court is sufficient in any action or proceeding where such approval is required by law.

(2)The written consent of the employer is not required in a claim that is subject to subdivision (b) of Section 3852.

(b)(1)Notwithstanding anything to the contrary contained in this chapter, an employee may settle and release any claim they may have against a third party without the consent of the employer. Except as provided in paragraph (2), a settlement or release shall be subject to the employer’s right to proceed to recover compensation they have paid in accordance with Section 3852.

(2)In any case governed by subdivision (b) of Section 3852, a settlement or release shall limit the employer’s claim for reimbursement to the portion of the settlement allocated to the employer pursuant to subdivision (b) of Section 3852.

Notes of Decisions
Cited in 26 cases (3 in the last 5 years), 1969–2024 · leading case: Ventura Cnty. Employees' Ret. Ass'n v. Pope, 87 Cal. App. 3d 938 (Cal. Ct. App. 1978).
Ventura Cnty. Employees' Ret. Ass'n v. Pope, 87 Cal. App. 3d 938 (Cal. Ct. App. 1978). · cites it 6× “" This provision was implicitly incorporated into defendant's general release and defeats any claim of impairment of contract as a bar to the Association's action.”
Dorroh v. Deerbrook Ins. Co., 223 F. Supp. 3d 1081 (E.D. Cal. 2016). · cites it 6× “Cal. Lab. Code § 3859 (a) 5 ; Board of Administration v.”
Barbara Allen as of the Est. of Gregg Geddes Allen, Deceased v. Allstate Ins. Co., 656 F.2d 487 (9th Cir. 1981). · cites it 2× “Coe noted that under the California Labor Code §§ 3859, 3860 (West 1971), if workers’ compensation benefits have been paid, no settlement of an injured employee’s claim is valid without notice to, and the consent of, the claimant’s employer.”
Mincin v. Vail Holdings, Inc., 308 F.3d 1105 (10th Cir. 2002). “” Cal. Lab.Code § 3859(a). It is plain, however, that this language (“release or settlement of any *1114 claim”) applies to settlements and releases obtained after an accident.”
Cnty. of San Diego v. Sanfax Corp., 568 P.2d 363 (Cal. 1977). “Labor Code section 3859 does not grant an employer a right of action which runs from the date upon which an employee settles his or her claim with a third party without the employer’s consent.”
Mares v. Baughman, 2001 Cal. Daily Op. Serv. 8527 (Cal. Ct. App. 2001). “798; Lab. Code, § 3859.) Thus, we again find County’s argument unpersuasive.”
Dairyland Ins. v. Herman, 954 P.2d 56 (N.M. 1997). “This reimbursement to the Fund was required by statute under the California Labor Code. See Cal. Lab.Code § 3859 (West 1971) (as amended 1971) (right to reimbursement); Cal.”
Coe v. State Farm Mut. Auto. Ins., 42 Cal. Comp. Cases 1100 (Cal. Ct. App. 1977). “(Lab. Code, §§ 3859, 3860, subd. (a); Smith v.”
Short v. Dairyland Ins. Co., 334 N.W.2d 384 (Minn. 1983). “; see Cal.Lab.Code §§ 3859, 3860, subd. a (West 1976).”
Bailey v. Reliance Ins., 65 Cal. Comp. Cases 375 (Cal. Ct. App. 2000). · cites it 2× “) *455 As we have said, Labor Code section 3859, subdivision (a) provides: “No release or settlement of any claim under this chapter as to either the employee or the employer is valid without the written consent of both.”
Van Nuis v. Los Angeles Soap Co., 39 Cal. Comp. Cases 88 (Cal. Ct. App. 1973). “) In 1971, Labor Code sections 3859 and 3860 were amended (Stats.”
Associated Constr. & Eng'g Co. v. Workers' Comp. Appeals Bd., 587 P.2d 684 (Cal. 1978). “In the case of a recovery by an injured employee against a third party tortfeasor by way of a settlement rather than a judgment, Labor Code section 3859, subdivision (b), by its express and unambiguous terms, has wiped out any remedy by the employer to secure a credit, to be…”
— Cal. Labor Code § 3859(a) — 2 cases
Mincin v. Vail Holdings, Inc., 308 F.3d 1105 (10th Cir. 2002). “” Cal. Lab.Code § 3859(a). It is plain, however, that this language (“release or settlement of any *1114 claim”) applies to settlements and releases obtained after an accident.”
Dorroh v. Deerbrook Ins. Co., 223 F. Supp. 3d 1081 (E.D. Cal. 2016). “Cal. Lab. Code § 3859 (a) 5 ; Board of Administration v.”
— Cal. Labor Code § 3859(b) — 2 cases
Dorroh v. Deerbrook Ins. Co., 223 F. Supp. 3d 1081 (E.D. Cal. 2016). “Cal. Lab. Code § 3859 (a) 5 ; Board of Administration v.”
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