After getting injured at work, it’s common to feel inclined to leave your workplace, especially if it was responsible for the injury. After all, if you’re dealing with the trauma from an accident at work, going back to work can make it difficult. That said, quitting your job while receiving workers’ compensation can be difficult. While you’re legally allowed to quit your job, you will lose out on any compensation for lost wages if you’re on leave for a temporary disability because of your injury. This law may differ from state to state, but you can receive workers’ compensation benefits as long as you need medical treatment for injury. Regardless of your situation, it’s essential to understand the potential outcomes of your workers’ compensation benefits if you decide to quit.
How Does Quitting Affect Workers’ Comp Benefits in California?
While quitting your job doesn’t automatically end your workers’ compensation benefits, it may disqualify you from receiving certain benefits, particularly wage replacement benefits. In essence, wage replacement benefits provide at least 60% of your income to replace any hours you miss from work because of your injury. If you’re no longer working because you quit voluntarily, your employer’s workers’ compensation insurance provider isn’t obligated to provide financial support.
This primarily applies to temporary partial disability (TPD) benefits only. If you can prove that you are eligible for temporary total disability (TTD) or permanent disability benefits, you can indicate that your injury permanently affects your ability to find future work, thus affecting your work options even after you quit.
You will continue to receive compensation for medical treatment, whether you quit or not, until you no longer need it or if your insurance provider finds a qualifying reason to stop payments.
Legal Implications of Quitting While On Workers’ Comp
As mentioned, you’ll only lose out on workers’ compensation benefits if you only receive temporary partial disability benefits. If you plan on quitting, it’s essential to contact a workers’ compensation attorney to learn how you can prove that you have a permanent disability if you’d like to still receive financial compensation for lost wages even after resigning.
An attorney can also protect you if you plan on quitting while your workers’ compensation claim is still being processed and settled. Otherwise, your provider or employer may use your quitting against you, and you may not receive fair compensation.
Impact on Potential Workers’ Comp Settlement
If you quit while your insurance provider is settling your claim, employers or insurance companies may argue that your voluntary resignation indicates you could have returned to work in some capacity, using this reasoning to contest the severity of your disability and reduce the settlement amount. In some cases, insurers might claim that your decision to quit was unrelated to the workplace injury, which could weaken your position in settlement negotiations. The burden may fall on you to prove that the resignation was medically necessary or directly related to the injury’s impact on your ability to continue working.
Furthermore, if you resign before reaching maximum medical improvement (MMI) — when medical providers consider your condition to be stable — insurers might offer a lower settlement, anticipating that your recovery will continue without additional costs to them. On the other hand, if you have reached MMI, the settlement will likely focus on compensating for any permanent disability and future medical expenses, regardless of your employment status.
While quitting does not automatically invalidate a workers’ comp claim, it can give employers and insurers more leverage to contest the claim or negotiate a lower settlement. Working with a qualified workers’ compensation attorney can help protect your rights and ensure that any settlement offer reflects the full scope of your injury and needs.
Understanding “Voluntary Resignation” Under Workers’ Comp Laws
Voluntary resignation is a significant influencing factor when receiving workers’ compensation benefits after quitting. If your employer or insurance provider can prove that you voluntarily resigned unrelated to your injury, you may not receive as many benefits. On the other hand, if your employer terminates you, they are still obligated to pay for workers’ compensation. If they terminate you as retaliation, you can pursue legal action. Because of this fine line, finding an attorney to help protect your interests and determine whether your employer’s actions are illegal is essential.
Financial Considerations When Quitting While On Workers’ Comp
While you should always consider your financial situation when deciding whether or not to quit, it’s essential if you’re receiving workers’ compensation benefits. If you suspect you’ll lose compensation for lost wages, you could lose out on a significant source of income if you don’t already have a stable job lined up for you that you can do while you recover from your injury. As such, it’s essential to plan your resignation around whether you aim to pursue permanent disability benefits, find a less physically demanding job, or account for any lost employment benefits.
Potential Loss of Income
If you are receiving TPD benefits, planning your next steps is essential if you want to quit, as this income will likely dissipate after resigning. For one, you could seek out permanent disability (PD) payments. Since your insurance provider bases PD payments on the extent of your impairment rather than lost wages, they may be limited in scope compared to TTD payments. If you resign before reaching Maximum Medical Improvement (MMI), your wage replacement benefits could end, leaving a potential gap in income before you secure other financial resources.
To minimize the impact of potential income loss, create a financial buffer by building savings, reducing non-essential expenses, and exploring alternative sources of income. You may also want to consider applying for Social Security Disability Insurance (SSDI) to supplement your income.
Impact on Health Insurance and Other Employment Benefits
While workers’ compensation benefits generally cover medical expenses directly tied to the work injury, they may not cover other health conditions your employer’s insurance plan covers.
To manage the impact of losing health insurance, seek out alternative coverage options like the Consolidated Omnibus Budget Reconciliation Act (COBRA), which allows you to continue your employer’s health insurance plan for a limited period after leaving your job. Although COBRA coverage can be costly since you will be responsible for the entire premium, it can provide temporary coverage during the transition.
You may also consider enrolling in a health insurance plan through the Health Insurance Marketplace, where you may qualify for subsidies to lower your premium costs based on your income. Additionally, if you qualify for government programs like Medicaid, this could offer a more affordable coverage option.
Steps to Quit While On Workers’ Comp
To receive the best outcome when quitting while on workers’ compensation, go through the following steps:
- Reach Maximum Medical Improvement (MMI) if possible: As mentioned, insurance providers will be more willing to provide permanent disability benefits if you’ve reached MMI, and you’ll also receive the maximum medical treatment coverage.
- Find a backup job if possible: For some injuries, you may still be able to find a job willing to provide accommodation, particularly if you find a new role in a less labor-intensive position.
- Document communication about your claim: Keep detailed records of any communication related to your workers’ comp claim, including emails, letters, and phone conversations with your employer and the workers’ comp insurer. Documenting these interactions can help protect your rights if your employer or insurance provider disputes your benefits after your resignation.
- Secure alternative health insurance: Look into COBRA coverage, marketplace insurance plans, or government programs like Medicaid to ensure no gaps in your health insurance coverage.
- Notify your employer in writing: In a letter or email, mention your intent to leave and the reasons, especially if they relate to your work injury or medical condition. This documentation can support your case if the insurer questions your resignation.
- Coordinate ongoing medical care: You’ll most likely have to find a new medical professional that your workers’ compensation insurance provider will still cover after you quit. It’s essential to see if any complications with medical billing will arise during this change before you transition.
Most importantly, contact a workers’ compensation attorney before these steps occur. They’ll be able to provide specialized advice on what they think you should do to receive the best outcome for your settlement, even after you quit. Request Legal Help, in particular, has legal professionals with years of experience protecting California’s workers’ well-being. Contact us today, so you can feel comfortable quitting and moving your career forward, no matter what injuries you handle.
FAQs About Quitting Your Job While on Workers’ Compensation in California
Can I Still Receive Workers’ Comp Benefits After Quitting My Job?
Yes, you can still receive workers’ comp benefits after quitting, but it depends on the circumstances of your resignation and your ongoing need for medical treatment or disability benefits. In some cases, quitting may impact your eligibility for wage replacement benefits, so it’s essential to understand how voluntary resignation could affect your claim.
Does Quitting My Job Affect My Workers’ Comp Settlement?
Quitting your job could affect your workers’ comp settlement, primarily if the employer or insurance company argues that your resignation is unrelated to your injury. While you may still be entitled to a settlement, the amount or terms may be influenced by whether you voluntarily left your job.
Will I Still Receive Medical Care For My Work Injury If I Resign?
If you quit your job, you may still be eligible to receive medical treatment for your work-related injury, as workers’ comp benefits cover necessary medical care.
How Does Quitting Voluntarily Differ From Being Laid Off While on Workers’ Comp?
Quitting voluntarily means you chose to leave your job while being laid off, which indicates that your employer ended your employment. This distinction matters for workers’ comp benefits because voluntary resignation may limit certain wage replacement benefits, whereas you may still receive benefits if your employer terminates you.
Can I Change My Workers’ Comp Doctor If I Quit My Job?
You can change your workers’ comp doctor if you quit your job, as long as the new doctor is authorized to provide treatment under your workers’ compensation claim. It’s essential to follow the appropriate steps to ensure a smooth transition of care.
Should I Consult With an Attorney Before Quitting While on Workers’ Comp?
Yes, an attorney can help you understand the potential impact on your benefits and ensure that you make informed decisions regarding your workers’ compensation claim.
Does Resigning While on Workers’ Comp Affect My Health Insurance Coverage?
Resigning from your job could impact your health insurance coverage if your employer provides your health benefits. You may need to seek alternative coverage, such as COBRA, to maintain health insurance after leaving your job.
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.
