After suffering a work-related injury, many employees fear one thing more than their medical bills losing their job while on workers’ compensation. This fear is valid, especially if you’re on unpaid leave or restricted duties. The question of whether an employer can legally terminate you during this time is complex, and it depends heavily on state laws, the nature of your injury, and the reason for termination.

Workers’ compensation laws are meant to protect injured employees, not punish them. While these laws do not guarantee job security indefinitely, they do provide legal protections against unjustified or retaliatory termination.

Understanding At-Will Employment vs. Retaliation

Most employees in the U.S. are hired under an “at-will” employment arrangement. This means employers can terminate employees at any time and for any legal reason or no reason at all. However, at-will employment does not give employers free rein to fire workers for illegal or discriminatory reasons, including retaliation for filing a workers’ compensation claim.

Retaliatory termination—firing someone simply for seeking benefits is illegal in all 50 states. If you suspect your termination was due to your injury or claim, you may have grounds for a wrongful termination lawsuit or retaliation claim.

When It’s Legal to Terminate an Injured Worker

Not all terminations during a workers’ comp leave are unlawful. An employer may fire an employee for reasons unrelated to the injury or claim, such as:

• Company-wide layoffs or restructuring
• Poor performance or documented misconduct
• Inability to perform essential job duties after medical evaluation
• Violation of company policies

In these cases, the employer must prove that the termination was not influenced by the workers’ comp filing. Documentation and performance records often become key evidence in such disputes.

Additionally, if your doctor concludes that you cannot return to work permanently, the employer may be allowed to fill your role. However, you may still be eligible for permanent disability benefits or vocational rehabilitation.

Red Flags That Suggest Retaliation

It can be difficult to know if you were fired legally or if retaliation played a role. Watch out for these warning signs:

• You were suddenly terminated shortly after filing your claim
• You received negative performance reviews after returning to work, despite no prior complaints
• Co-workers or supervisors pressured you not to file a claim
• Your employer refused to accommodate medical restrictions
• Other injured workers at your company have faced similar treatment

Any of these situations could indicate that your firing was based, at least in part, on your workers’ comp status.

What to Do If You’re Terminated While on Workers’ Compensation

If you believe you were wrongfully terminated or retaliated against, you should take action immediately. Here's what to do:

1. Document Everything: Keep detailed records of all communication with your employer, medical notes, and performance reviews. Save texts, emails, and formal warnings if applicable.
2. Request a Written Explanation: Ask your employer for the specific reason for your termination.
3. File a Complaint: Many states allow you to file a complaint with the state labor board or workers’ compensation commission.
4. Consult an Attorney: Speak with a lawyer who specializes in workers’ comp or employment law. They can evaluate your case and determine whether you have a strong retaliation claim.

In some cases, employees can be reinstated to their job, receive back pay, or be awarded compensation for emotional distress and punitive damages.

How Federal and State Laws Protect You

Federal laws like the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA) can provide additional job protection if your injury qualifies as a disability or if you're eligible for medical leave.

• FMLA provides up to 12 weeks of unpaid, job-protected leave per year for serious health conditions. Not all employers are covered, and employees must meet certain tenure and hour requirements.
• ADA requires employers to make reasonable accommodations for workers with disabilities unless doing so would cause undue hardship.

State-specific laws may also offer additional protections, such as anti-retaliation statutes, protected leave extensions, or penalties for non-compliant employers. It’s important to consult with a local attorney familiar with your state’s employment and workers' comp laws.

Protecting Your Rights While Healing

The period after a workplace injury is stressful enough without the added worry of job loss. If you’re receiving workers’ comp and are concerned about your employment, stay informed and take proactive steps to protect yourself.

Remember:

• Filing a claim is your legal right.
• Retaliation for filing is unlawful.
• An experienced attorney can help you challenge unfair treatment.

Your health and financial well-being shouldn’t be jeopardized because you stood up for your rights. If you’re facing uncertainty or think your firing was unjust, don’t hesitate to take legal action to ensure your voice is heard and your future remains secure.