How Will Your Workers’ Compensation Benefits Affect Your Job Loss?

By  //  October 31, 2022

It’s a common concern that many have: “If I quit my job, will I still be eligible for workers’ compensation benefits?” If I take time off work to deal with my workers’ comp claim, would my employer fire me?

The quick answer to the first question is yes, you can continue to get your Workers’ Compensation payments even if you quit your employment, albeit this is a difficult matter.

If, however, your employer terminates you or demotes you because you filed a workers’ compensation claim, they are breaking the law.

While Receiving Workers’ Comp, Can You Be Fired?

Your legal right to continue working is not guaranteed by any state or federal workers’ compensation statute. While on workers’ comp, if your employer decides to lay you off or put you on furlough, they’ll have to provide evidence as to why they made the decision.

They’ll also have the burden of demonstrating that the action has nothing to do with you making a claim.

If your employer has the authority to terminate your job for any reason, including no cause at all, then you can be laid off or fired even if you are collecting workers’ compensation. While on workers’ compensation, you might lose your employment due to:

■ Problems with the company’s finances that have nothing to do with your work

■ In-house reorganization

■ We had to let you go from your job for reasons that are completely unconnected to you.

■ Past work performance was inadequate

When a worker is laid off, what happens to their workers’ compensation benefits?

It’s reasonable to believe that your workplace accident has resulted in enhanced safeguards for your position. That is not the case, however, from a legal standpoint.

Thankfully, you have substantial protection. Should you become unemployed while receiving workers’ compensation benefits, you will still be able to receive payments for as long as you are unable to work.

Since the accident happened on the job, you should be able to collect workers’ comp benefits while you heal. Last but not least, if you are laid off and then return to work under certain conditions, you should not see a change in your benefits.

If your firm has fallen behind on insurance policy payments and your coverage has lapsed, for example, you may lose your benefits. However, you would still have the option to seek remuneration through other means.