Can You Be Fired While on Workers’ Comp?

Workers’ compensation benefits are designed to cover an employee’s expenses due to a work-related injury. However, some employers may wrongfully terminate an employee for filing a claim, which is illegal.

Employers cannot fire an employee for an unlawful reason, such as a work-related injury, even in an at-will employment state. However, they may terminate an employee receiving workers’ compensation benefits for just reasons. Sufficient evidence and documentation should support this move.

If you believe you were terminated for your work-related injuries and filing a claim, it may be worth discussing your case with a workers’ comp lawyer.

What is Workers’ Compensation?

Workers’ compensation is a type of employer insurance policy that covers the expenses of injured employees, regardless of fault. A no-fault system means injured employees can collect workers’ compensation benefits, regardless of who or what caused the accident.

Workers’ compensation covers medical care, disability, and cash benefits.

The Purpose of Workers’ Compensation Claim

A workers’ compensation claim can help protect both employers and employees. The insurance policy covers wage replacement benefits, which typically provide around two-thirds of regular weekly wages when employees cannot work due to work-related injuries or illnesses.

The compensation also includes medical bills and lost wages. The employer can ensure their employee is cared for without paying out-of-pocket costs beyond the initial policy.

Your Rights as an Injured Worker

Injured workers have legal rights protected by workers’ compensation laws. These include the right to medical treatment and compensation for lost wages, as well as protection from being fired solely for filing a claim or receiving benefits while injured.

Legal Protections Against Retaliatory Termination

It is illegal for an employer to terminate an employee for being injured on the job or filing a workers’ compensation claim. An employer who violates this law may be liable for wrongful termination, which could mean expensive penalties and restitution.

State Laws and Anti-Discrimination Protections

Each state has laws to protect workers, including prohibiting termination based on injury. Employers are expected to make reasonable accommodations, including light-duty work, fewer job duties, transfer to a different department, or the same work task with certain restrictions, unless they can demonstrate doing so would be extremely costly and disruptive.

Anti-discrimination laws add another layer of protection to employees. The Americans with Disabilities Act (ADA) protects employees with disabilities, including those resulting from workplace injuries.

Situations Where Termination Might Be Legal

While it is illegal for an employer to terminate an employee solely because the employee suffered an injury and filed a workers’ compensation claim, it is possible to do so for other non-discriminatory reasons.

Specific scenarios in which it may be legal to fire an employee receiving workers’ compensation benefits include the following:

• Poor Performance: Poor performance or performance issues may be a legal reason to terminate an employee. However, clear documentation should show a history of low performance.
• Employee Misconduct: Employee misconduct can be a fireable offense. However, company policies should show violations and expected consequences.
• Company Layoffs or Downsizing: An employer may also fire employees due to necessary layoffs or downsizing. The layoff, however, shouldn’t affect the employee’s access to workers’ comp benefits.
• Contract Expiration: An employer may fire an employee after their contract expires, even if they collect benefits. This termination shouldn’t affect the employee’s ability to collect medical benefits from workers’ comp.

Employees fired without legitimate reasons may have rights for wrongful termination.

The Importance of Documentation

Even if an employer chooses to terminate an employee for an approved reason, they should have sufficient documentation to do so. Otherwise, it could be argued that the employee was wrongfully terminated based on the injury.

The employer must have sufficient documentation proving the cause for termination and that it is unrelated to the workers’ compensation claim. For example, if an employer fires an employee for low performance, these issues should be documented in the employee’s employment record.

What to Do if You Are Fired While on Workers’ Comp

If you were fired while receiving workers’ comp benefits, you may have a legal case, depending on the reason. If you believe you were wrongfully terminated, here are a few important steps.

Consult with a Workers’ Compensation Attorney

Consider discussing your workers’ comp case with a lawyer if you believe you were fired unjustly. Understanding your state’s workers’ compensation laws is essential to protect your legal rights. A lawyer familiar with employment law in your state can be a helpful resource as you navigate your workplace injury case.

Gathering Evidence

An experienced attorney will help you build your case, gathering evidence to demonstrate that you were fired due to employer retaliation.

If your employer wrongfully terminated your employment, our law firm will get to the bottom of what happened. Through a collection of detailed records, performance reviews, disciplinary records, and witness statements, we’ll work to build a case that protects your rights.

Filing a Complaint or Lawsuit

Filing a complaint with the state labor board helps with investigating your case. The state’s labor board will make reasonable efforts to review your claim and determine why you were fired while on workers’ compensation.

You may also be eligible for a civil lawsuit if you were fired while on workers’ comp without reason. Filing a lawsuit allows you to recover lost benefits and damages. It also allows you to receive benefits until you reach maximum medical improvement (MMI).

Protecting Your Rights

As an employee, you have a legal right to continued employment, even while recovering from an injury. Protect this right with the following tips.

Understanding Your Employment Contract

All employees sign paperwork when starting a new job. Review your employee contract or handbook in detail to better understand your company’s policies. Learn everything you can about reporting an injury and filing a workers’ comp claim.

Review the company’s policies and what steps must be taken before termination. For example, many employers may fire their workers for poor job performance or employee misconduct. However, they must document this process for it to be legally allowed.

Employers cannot fire employees based on discrimination, including national origin, gender, or age. They also cannot fire an employee solely for a work injury.

Additionally, an employer cannot fire an employee for having doctor’s restrictions from an injury suffered while at work. Instead, they are expected to provide reasonable accommodations, if possible.

An at-will employment state allows employers to terminate an employment contract at any time for any reason without legal consequence. However, this does not protect against discrimination or when the employer retaliates for an injury or filing a workers’ comp claim.

Documenting Everything

If you suffer a workplace injury, be sure to document every step of the process. The workers’ comp insurance company should cover your medical costs and lost wages. However, if you have issues with the claim or your employer retaliates and fires you for collecting workers’ compensation benefits, this documentation can help build a strong case.

Keep track of all medical records, written communications, insurance documents, and doctor releases.

Seeking Legal Advice Early On

If you’re fired while on workers’ compensation benefits, it’s best to seek legal advice from an experienced lawyer as soon as possible. The faster you pursue legal action, the sooner you can reinstate your benefits, which may be important to cover medical expenses and lost wages.

If you have concerns about job security or employer retaliation, consider discussing your case with a workers’ compensation lawyer before filing.

A lawyer can also be helpful after you have reached maximum medical improvement, especially if your injuries are long-lasting. An experienced lawyer will help you explore other legal options.

Secure Expert Legal Counsel!

Injured workers have rights, even when they cannot return to work. If you were fired from your job while on workers’ compensation, you may be owed benefits and back pay. Protect your rights by working with a workers’ comp lawyer from Rosenfeld Injury Lawyers throughout the recovery process.

Contact a Chicago workers’ comp claim attorney at (888) 424-5757 for a free initial consultation, or fill out our online form.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.