Can I Be Terminated While on Workers’ Compensation?

Experiencing a work-related injury or illness can be overwhelming, and the added stress of navigating the complexities of workers’ compensation only adds to the challenge. With so many questions swirling around – “Can I be terminated while on workers compensation?”...

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Experiencing a work-related injury or illness can be overwhelming, and the added stress of navigating the complexities of workers’ compensation only adds to the challenge. With so many questions swirling around – “Can I be terminated while on workers compensation?” What are my rights? How do I protect myself from retaliation? – it’s essential to have a clear understanding of the laws and processes involved. In this blog post, we’ll explore these questions and more, empowering you with the knowledge you need to protect your rights and ensure a fair outcome.

Key Takeaways

  • Understand workers’ compensation and employment status to take advantage of benefits.
  • Employers may legally terminate employees for reasons such as misconduct or restructuring, but not solely due to a workers’ comp claim.
  • Seek legal assistance if you suspect wrongful termination in order to protect your rights and ensure fair outcomes.

Understanding Workers’ Compensation and Employment Status

Workers’ compensation provides invaluable income replacement and medical coverage, including health insurance, for employees who suffer from a work-related injury or illness. However, comprehending your employment status and its potential impact on your rights and job security while on workers’ comp is vital.

This part explores the advantages of workers’ compensation and the importance of your employment status.

Workers’ Compensation Benefits

Workers’ comp benefits typically cover partial lost wages for a predetermined period, generally equating to 66% of one’s full wages, and medical or funeral expenses. These benefits are especially important for those who have suffered a serious work-related injury. Eligibility requirements for workers’ compensation can vary by state, but generally, an individual must be an employee, the injury or illness must be work-related, and the employer must have workers’ compensation insurance.

Workers’ compensation benefits are usually calculated as a percentage of the employee’s average weekly wage, and this applies to both at-will and employees on a contract. These benefits are typically not subject to taxation at either the state or federal levels. The duration of workers’ compensation benefits depends on the state’s laws and the individual circumstances, but generally, benefits may continue until the injured worker has achieved maximum medical improvement or is able to return to work.

Employment Status and Workers’ Comp

The primary distinction between at-will employment and contracted employment regarding workers’ compensation benefits is that contracted employment has binding terms, whereas at-will employment allows either the employer or the employee to terminate the employment relationship at any time and for almost any reason. This difference in employment status can play a significant role in your job security while receiving workers’ comp benefits.

Remote employees, part-time, or freelance workers are generally eligible for workers’ compensation coverage when a workplace injury or illness is job-related. Adhering to work restrictions set by employers is a must for employees, as non-compliance may lead to disciplinary action, including termination.

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Can You Be Fired While on Workers’ Compensation?

Although it may be concerning to think about, the answer is yes – employees can be fired while on workers’ compensation. However, the dismissal cannot be solely attributed to their claim. The type of employment and legal reasons for termination play a significant role in determining whether an employee can be terminated while receiving workers’ comp benefits.

At-Will Employment vs. Contracted Employees

At-will employees can be terminated for any legal reason without prior notification or cause. On the other hand, contracted employees have a written agreement outlining the terms and conditions of their employment, including the duration of the contract and the circumstances for termination. In contracted employment, termination can only occur if there is a breach of the contract or if both parties mutually agree to end the contract.

The termination process for at-will employees is relatively straightforward, as employers can terminate them at any time and for any reason, without providing a specific cause or notice. For contracted employees, the termination process may be more complex, as the terms of the employment contract will dictate the conditions under which the employee can be terminated, including specific reasons for termination, notice periods, and any required severance or compensation.

Legal Reasons for Termination

Employers can legally terminate employees for reasons unrelated to their workers’ comp claim, such as layoffs, restructuring, or misconduct. In cases where an employer fired an employee due to a lack of work or funds, this can be considered a layoff, which can be either temporary or permanent in nature.

Remember, while employees can be dismissed while on workers’ compensation, their claim cannot be the sole reason for termination. Should you suspect that your dismissal is linked to your workers’ comp claim, gathering evidence and seeking advice from a workers’ compensation attorney to assess your case and determine if there’s basis for a retaliation claim or lawsuit is advisable.

Recognizing Retaliation and Wrongful Termination

Retaliation and wrongful termination are illegal actions taken by an employer to terminate an employee for filing a workers’ compensation claim. Recognizing signs of retaliation and taking appropriate measures if wrongful termination is suspected is vital for safeguarding your rights and securing a fair resolution.

Signs of Retaliation

Signs of retaliation may include unexpected negative performance reviews, being excluded from meetings, or perceiving a difference in treatment after submitting a workers’ comp claim. Other evidence of retaliation could be sudden changes in work duties or responsibilities, such as reassignment of customary tasks, modification of schedule to cause hardship, or giving someone less than ideal work tasks.

Employees who have filed for workers’ compensation may experience the following forms of retaliation:

  • Undeservedly poor performance reviews
  • Failure to promote
  • Demotion
  • Adverse wage actions
  • Threats of adverse action
  • Isolation
  • Termination

Recognizing these signs is key to safeguarding yourself from wrongful termination and ensuring your rights are respected.

Fred’s Story

When Fred suffered a back injury at his manufacturing job, his employer reluctantly allowed him to go on workers’ compensation. After a few weeks, he received notice that he was being let go due to “corporate restructuring.”

Suspicious of the timing, Fred contacted our intake team at wh Law.. We investigated and discovered his termination was likely retaliation for filing a claim. The lawyer explained to Fred that firing an employee solely for pursuing workers’ comp was illegal in Arkansas.

Armed with this knowledge, Fred had wh Law send a stern letter to his employer, threatening legal action for wrongful termination. The company, wanting to avoid a lawsuit, promptly reinstated Fred’s job.

Steps to Take if You Suspect Wrongful Termination

If you have reasons to believe that you have been wrongfully dismissed due to a workers’ compensation claim, taking action is imperative. Here are the steps you should follow:

  1. Collect any relevant legal and medical documents.
  2. Gather documented and verifiable proof of the connection between your dismissal and your workers’ compensation claim.
  3. Consult with an experienced workers’ compensation attorney to evaluate your case and determine if there are grounds for a retaliation claim or lawsuit.

Keep in mind that there may be time constraints for filing a lawsuit after termination while on workers’ compensation. Acting swiftly and seeking legal advice promptly is vital to protect your rights and secure the best possible result.

Navigating Work Restrictions and Accommodations

Both employees and employers must strictly follow work restrictions and accommodations. Employers must accommodate work restrictions, and employees must follow them. Failure to do so can lead to termination and loss of benefits for the employee, as well as potential legal consequences.

Employer’s Responsibility for Accommodations

Employers are required to make reasonable accommodations for employees with work restrictions under the Americans with Disabilities Act (ADA). Reasonable accommodations may include modifications or adjustments to the job, work environment, or schedule that would enable the employee to fulfill their job duties. By making reasonable efforts, employers can ensure compliance with the ADA and support their employees’ needs.

These accommodations must be provided unless the employer can demonstrate undue hardship. The ADA outlines certain responsibilities for employers, such as:

  • Providing accessible facilities
  • Granting reasonable accommodations
  • Avoiding discriminatory practices
  • Engaging in an interactive process
  • Guaranteeing equal treatment

Consequences of Not Following Work Restrictions

Not following work restrictions can have serious consequences for employees. It can:

  • Display a lack of commitment to following rules and regulations
  • Potentially worsen the injury or condition
  • Create a negative impression on potential employers
  • Limit job prospects for certain positions.

In addition to these consequences, failure to comply with work restrictions may result in termination of employment and forfeiture of workers’ compensation benefits. For injured workers, adhering to their work restrictions is key to ensure they receive all their entitled benefits.

Protecting Your Rights and Seeking Legal Assistance

Safeguarding your rights while on workers’ compensation is of utmost importance. Knowing your rights and seeking legal assistance when necessary can help ensure a fair outcome and prevent retaliation or wrongful termination.

Knowing Your Rights

While on workers’ compensation, workers are entitled to:

  • Filing a workers comp claim for their illness or injury
  • Request a reasonable accommodation if their injury qualifies as a disability
  • Be safeguarded from discrimination or termination due to their workers’ compensation case or workers comp settlement

Being aware of your rights under workers’ compensation laws and the ADA, as well as keeping detailed records of all communication with your employer, is essential.

If your work injury is considered a disability under the ADA, you may request a reasonable accommodation once you reach maximum medical improvement. Following the right procedure for requesting accommodations and seeking legal advice if you believe your rights have been infringed upon is critical.

When to Consult a Workers’ Compensation Attorney

Consulting a workers’ compensation attorney can be incredibly helpful if you suspect retaliation, wrongful termination, or if you need assistance navigating the complexities of workers’ compensation claims. An attorney can aid in retaliation or wrongful termination cases by evaluating the scenario, furnishing legal counsel, accumulating proof, representing the employee, and pursuing recompense for losses.

Bear in mind that the average cost of hiring a workers’ compensation attorney is typically between 10% and 25% of your settlement or award. The duration of a workers’ compensation claim process with legal representation can vary greatly depending on the circumstances of the case, including the severity of the injury, the complexity of the case, and the laws of the state.


Navigating the complexities of workers’ compensation can be overwhelming, but understanding your rights and the laws that protect you is key to ensuring a fair outcome. Whether you’re an at-will employee or under a contract, it’s crucial to be aware of your rights and the potential consequences of not following work restrictions. Remember, if you suspect retaliation or wrongful termination, don’t hesitate to consult a workers’ compensation attorney to protect your rights and secure the best possible outcome.

Frequently Asked Questions

Can I lose my job due to an injury?

You cannot get fired solely because you suffered a workplace injury; however, depending on your specific state laws, you may be fired for other reasons.

What are the benefits provided by workers’ compensation?

Workers’ compensation provides economic and medical benefits to employees who have suffered a work-related injury or illness, including partial wages, medical expenses, and funeral costs.

What is the difference between at-will employment and contracted employment in relation to workers’ compensation?

At-will employment gives both employers and employees the flexibility to end the relationship at any time, while contracted employment requires a breach of contract or mutual agreement before termination is possible. As such, in relation to workers’ compensation, at-will employment offers more options for employers and employees when it comes to changing their terms of employment.

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