It is common in Colorado for the ins co to ask you to resign if you want to settle, however there is no reason to quit a job that you have just for the settlement. To really answer the question an attorney needs to understand a lot more about the case and the injury so you should consult with someone prior to doing anything. Keep in mind that you only have 30 days from the date of any Final admission to object so talk to an atty right now if you have one of these already.
If this information has been helpful, please indicate by providing feedback that the answer was either "helpful" or "best answer" as appropriate. Legal Disclaimer: Mr. Connell is a Colorado attorney licensed in only that state. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question.
Excellent additional comments by Mr. Connell who is right on point. If you are unhappy or unsatisfied with your current attorney, Mr. Connell would be an excellent choice of a workers comp attorney
The information provided in this answer does not create an attorney-client relationship and is not considered to be legal advice.
You should consult with an attorney before signing any settlement. Often injured workers get more money in settlement for a resignation. Some workers wish to keep the employment and resignation may not be an option. The injured worker needs to determine the value of continuing the employment if resignation becomes an issue. Most Colorado Workers' Compensation attorneys will review these documents at no cost and give you a fair evaluation and a good legal opinion. Don't proceed with settlement until you have obtained counsel in this area.
We see those type of settlement requests in Utah. This is something that should be negotiated out of the settlement, or a separate settlement with significant money added for relinquishing your job. At very least, the settlement should outline that there will be a separation for medical reasons with payment of accumulated leave, unemployment, etc. If you just quit, none of that will be paid.
Of course the proper provisions in a settlement are always about the technical details of the case, which we do not have here. For example, if you are back to work, doing your job well, you are better off losing your workers compensation claim than taking a $5,000 settlement which requires the loss of your job. Your job is worth a lot of money in this economy. On the other hand, if every doctor is saying you cannot possibly do that kind of work anymore, protecting your job is pointless.