Many workers fear the day of receiving an injury at work—however, even more fear of getting fired. Combine the two fears, getting fired after a workplace injury, and you have any worker’s nightmare. If you find yourself in this situation, you may have a lot to worry about — the most paramount: will I lose my workers’ compensation benefits? The short answer is no; getting fired doesn’t inherently mean losing your workers’ compensation benefits if your workers’ comp insurer has already approved your claim. However, understanding your rights during this vulnerable time is crucial.

While workers’ comp benefits are designed to support injured employees, being on workers’ comp does not guarantee job protection. However, several laws protect injured employees from unfair treatment and retaliation. This article explores the legal protections, valid reasons for termination, wrongful termination claims, and what you can do if your employer fires you while on workers’ comp.

Workers’ Compensation and Employment Protection Laws

At its core, workers’ compensation provides financial protections — either through wage replacement or coverage for medical bills to employees injured on the job. While these benefits support an employee’s recovery, they do not necessarily provide you with job security.

While this may be the case, many states aim to prevent employers from firing or retaliating against employees solely because they filed a workers’ comp claim. On a federal level, employees receive protection from unfair termination through the following laws:

  • Americans with Disabilities Act (ADA): This act outlaws employers from refusing to accommodate employees with disabilities or discriminating against them.
  • Family and Medical Leave Act (FMLA): This law requires employers to provide, at minimum, 12 weeks of unpaid leave. They must also ensure the employee has the same job, if not an equivalent, to return to after leaving for their family or for medical reasons, including healing from a workplace injury.

These laws can protect you from retaliation or unjust termination. Still, they may not prevent your employer from terminating you if their reasoning is unrelated to your injury or workers’ comp claim.

Reasons an Employer May Terminate an Employee on Workers’ Comp

Employers cannot legally fire someone based solely on the fact that they fired a workers’ comp claim, but they can terminate an employee on workers’ comp for other lawful reasons, such as:

  • Company-wide layoffs: If a company conducts layoffs for financial or business restructuring repurposes, including you in the list of employees laid off is entirely legal, even if you receive workers’ comp.
  • Performance issues: If you had performance or disciplinary issues before filing your claim, your employer may terminate you for these reasons.

In addition, if you cannot perform your essential job functions and they cannot provide accommodations due to the size of the business or financial concerns, your employer may ask you to quit or apply for further disability benefits. While this differs from termination, it may still cause you to turn to employment elsewhere.

Three men wearing fluorescent vests and hard hats carry a piece of concrete with a metal bar

Wrongful Termination During Workers’ Comp

Wrongful termination refers to an illegal dismissal, such as being fired in retaliation for filing a workers’ comp claim. Retaliation is prohibited, meaning your employer cannot fire you solely because you pursued benefits for a work-related injury. Here are some signs that you may be facing wrongful termination:

Negative Treatment After Filing a Claim

If your employer places you under increased scrutiny or you receive particularly negative unsubstantiated feedback after you file a worker’s comp claim, this may be considered retaliation. Even if you aren’t fired in this circumstance immediately, it’s best to start paying attention, keeping documentation of the retaliation, and looking for legal help.

Changes In Job Duties or Hours

If your role or responsibilities are suddenly altered negatively after filing a claim, this may be a warning sign of retaliation. For example, your employer may delegate less desirable tasks to you, exclude you from essential meetings and decisions that affect your role, or reduce your working hours, which may affect your take-home income.

Employer’s Verbal or Written Statements

Comments about your workers’ comp claim or recovery affecting your job security could indicate bias. If your employer keeps bringing up your workers comp claim in a negative light, they may be conducting more severe forms of retaliation or planning to.

What Happens to Workers’ Comp Benefits If You’re Fired?

If your employer terminates while you still receive workers’ comp, your benefits may be affected depending on the specifics of your situation. Typically, medical benefits continue if your employer approves your claim before firing you. Wage replacement benefits may continue, but this varies by state and situation.

In some cases, benefits may end if the termination impacts your eligibility or claim status. For clarity, consult a workers’ comp attorney to ensure continued access to your benefits.

Steps to Take If You’re Fired While on Workers’ Comp

Because getting fired can be so traumatizing, you may be unsure of how to proceed or forget an essential action that could be essential when filing a wrongful termination case. If your employer fired you, regardless of the reason, take the following steps.

  1. Document everything: Keep records of communications with your employer, termination paperwork, and your workers’ comp claim status.
  2. Consult an attorney: Even if your employer denies having unfair reasons for firing you, you should still contact an attorney to see if they believe you have a case for wrongful termination or retaliation. From here, they’ll be able to guide you on how to file a claim.
  3. Review your claim: Ensure you continue receiving any entitled benefits, such as wage replacement or medical treatment.

These steps can help you protect your rights and seek fair treatment if you suspect unjust termination.

A man in a jump suit lays on the ground, while another person wraps his arm in medical tape.

How To Seek Legal Help if You Face Termination While on Workers’ Comp

Navigating a termination while on workers’ comp can be complex, so consulting a qualified attorney is essential. A workers’ compensation or employment lawyer can:

  • Review your case: A legal professional can determine whether your termination was lawful or may qualify as wrongful termination.
  • Advise on the following steps: Lawyers can teach you to file a wrongful termination claim or retaliation case.
  • Help secure benefits: Attorneys can advocate for your continued access to medical and wage replacement benefits.

If you’re concerned about job security while on workers’ comp, remember that the law protects against unfair treatment and retaliation. While employers may have valid reasons to terminate an employee, they cannot do so solely because of a workers’ comp claim.

If, after reading this guide, you feel your employer has wrongfully terminated you because of a workplace injury, reach out to Request Legal Help. Our lawyers are experts in both wrongful termination and workers’ compensation and will be able to deduce whether your employer was in the wrong. Our guidance can ensure you’re protected and have the support you need during your recovery.

FAQs About Being Fired on Workers’ Comp

Can My Employer Fire Me While I’m on Workers’ Compensation?

Yes, your employer can fire you while you receive workers’ comp for legitimate business reasons, but it is illegal to fire someone solely because they filed a workers’ comp claim.

Does Being Fired Affect My Workers’ Comp Benefits?

In most cases, you will continue receiving workers’ comp benefits even if your employer fires you, as long as your employer and workers’ comp insurer approve your claim before termination. However, you will not receive employer-paid healthcare benefits for medical bills unrelated to your workplace injury.

What Should I Do if My Employer Wrongfully Terminated Me While on Workers’ Comp?

If you believe your employer unfairly terminated you or did so as retaliation for filing a claim, consult an employment or workers’ comp attorney to discuss filing a wrongful termination or retaliation claim.

Can My Employer Fire Me if I Can’t Return to My Previous Position Due to Injury?

An employer may legally terminate you if your injury prevents you from performing essential job duties, though they should explore reasonable accommodations first under applicable laws like the ADA.

How Can I Prove My Termination Was Related to My Workers’ Comp Claim?

Document any evidence, such as communication with your employer or performance reviews that might show a connection between your claim and termination. Consulting a lawyer can help you build a strong case.

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.

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