What Happens If I Get Fired While On Workers’ Comp? Nov 2024
Summary
- Most states require employers to buy workers’ compensation insurance
- Workers’ compensation insurance pays medical benefits for work injuries
- Under some circumstances, employers cannot fire employees after a claim
Work-related injuries cost the U.S. economy $167 billion in 2022. In addition to medical expenses and wage losses, this number included lost productivity due to absent workers. The current system for coping with these injuries centers on workers’ compensation insurance.
An employee injured at work can file a claim with their employer’s workers’ comp insurer. If the insurer accepts liability, it pays all medical expenses. It also reimburses the worker for part of their lost wages.
Even though these benefits are paid by the insurer rather than the employer, some companies resent employees who file workers’ comp claims. However, most states prohibit companies from retaliating against claimants in any way, including by firing them.
Recovering from an injury is stressful. But losing your job at the same time is an even bigger headache. However, you may be able to do something about it. ConsumerShield educates people about their legal rights and helps them find lawyers. Contact us for a free case evaluation and an attorney referral.
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Workers’ Compensation Insurance and Public Policy
Employers buy workers’ compensation insurance for two reasons. The first is that every state except Texas requires at least some employers to have a workers’ compensation policy or self-insurance to cover employee injuries. Only companies with a workers’ comp exemption can avoid the state’s mandate.
The idea behind these laws is that employees act in their employer’s interests when working. If they suffer injuries while on the job, the employer should bear the financial burden of any required medical care. If the cost of medical care falls on the employee, no one would ever take hazardous positions.
The second reason why employers buy workers’ compensation insurance is that doing so makes them immune from personal injury lawsuits from workers. By making workers’ comp the exclusive remedy for work-related injuries, employers can focus on their businesses rather than defending against worker lawsuits.
Can You Be Fired While on Workers' Comp?
Do you find yourself wondering, “What happens if I get fired while on workers' comp?” If so, know that the legality of an employer’s actions against an employee on workers’ comp depends on the employer’s reasons.
States want injured workers to file workers’ comp claims. These claims help employers identify workplace safety risks and assist employees in returning to work. As a result, most states have anti-retaliation laws prohibiting actions against workers because of their workers’ comp claims.
For example, New York’s anti-retaliation law states that employers cannot discharge or discriminate against employees who do any of the following:
- Claim or attempt to claim workers’ comp benefits
- Request a claim form for a work injury
- Testify or attempt to testify in another worker’s claim hearing
Florida, by contrast, has a narrower retaliation statute. In Florida, employers cannot act against employees because they claimed or attempted to claim worker’s comp benefits. The illegal acts include:
- Discharge
- Threats to discharge
- Intimidation
- Coercion
Although they are worded differently and have separate scopes, these laws share one common element. Both New York and Florida require the employee to prove that the reason for the employer’s action was the workers’ comp claim.
In Florida, workers must prove they were fired “by reason” of their claims or attempted claims. In New York, the employee must show there was no other valid reason for the employer’s action.
If the worker successfully proves that the employer’s actions were retaliatory, they can recover compensation for the losses the actions caused. These might include back wages and job search costs.
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Can You Fire Someone on Workers' Comp?
The requirement to prove the retaliatory nature of the employer’s action leaves the door open for employee firings. Specifically, an employer can fire a worker receiving workers’ comp benefits for any reason other than retaliation or other illegal grounds. These other grounds typically involve discrimination under state or federal civil rights laws.
At-will employment allows the employer to fire workers for any reason or no reason except those that violate statutes or public policy. Thus, employers cannot fire someone for filing a workers’ comp claim or being a racial minority, but they can fire them for almost any other reason.
For example, an employer could legitimately fire a worker who’s receiving workers’ comp benefits for any of the following reasons:
- The employee can no longer perform their job duties after their injury
- The worker violated safety rules or acted negligently in causing the accident
- The injured worker endangered other employees
- The business is conducting a general layoff
- The employer no longer needs the employee’s services
If you are an employer and wish to terminate a worker receiving workers’ compensation benefits, you should thoroughly document your actions. The same action may expose you to different liability depending on your reasons.
For example, your workers’ comp insurance cost depends on your company’s experience rating. This rating is calculated using your claim history. A worker’s claim will affect your experience rating and increase your premium rate.
You cannot fire the worker for filing a workers’ comp claim, but you can let them go for creating an unsafe working environment. Even though the firing has the same effect, the reasons drastically alter your risk of facing a lawsuit.
Get Help From ConsumerShield
Employment and workers’ compensation law are complex fields. Equally importantly, there is a lot of variation in anti-retaliation laws and workers’ compensation insurance requirements by state. For instance, some states tend to protect workers, whereas others tend to prioritize employer protections.
ConsumerShield educates workers and employers about their rights and helps them find legal counsel. Contact us for a free case evaluation and a referral to a workers’ compensation lawyer.
Free Workers’ Compensation Case Review
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Workers’ Compensation Knowledge Base
Read the latest information on Workers’ Compensation and find answers to your questions. Currently there are 21 topics about Workers’ Compensation Claims.
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How Long Does It Take
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What Not To Do
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Insurance Requirements
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Workers Exemption
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Lawyers Wont Tell You
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Lawyers Chicago
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Lawyers Los Angeles
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When Offer Settlement
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Compensation Lawsuit
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Settlements & Payouts
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Is Taxable
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Insurance Cost
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Carpal Tunnel
Frequently Asked Questions
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Sometimes. A worker can sue an employer for wrongful termination if they can prove the employer’s motivation was retaliation for a worker’s comp claim. However, a firing for almost any other reason will not violate the anti-retaliation law. For example, employers can fire workers for violating safety rules.
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A workers’ comp settlement is often paid when the worker dies or has a long-term disability. If the employer fired the worker in retaliation for the claim, the employee may have grounds to sue. However, if the worker’s actions were the reason for the firing, the worker probably cannot sue.
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If you get fired due to your disabilities, you probably cannot file a retaliation lawsuit. However, you might have grounds to file a lawsuit for discrimination if you could do your job with reasonable accommodations, such as a wheelchair ramp or grab bars by your desk.