When an Employer Discharges an Employee During Workers' Compensation: What You Need to Know

Does a Termination During Workers' Compensation Violate the Law?

In most U.S. states, firing an employee while they are receiving workers' compensation benefits is prohibited. The Workers' Compensation Act and related state statutes make it unlawful to terminate an employee solely because they are injured or receiving medical treatment related to a workplace injury. If an employer does so, the employee can file a claim for unlawful discharge and may be entitled to reinstatement, back pay, and damages.

Key Legal Protections for Injured Workers

Under the Federal Workers' Compensation Act and analogous state laws, the following protections apply:

• Employees cannot be fired for the mere fact that they are injured.
• Terminations must be for legitimate, non‑discriminatory reasons unrelated to the injury.
• Employees who are injured can request a medical review to ensure the termination isn't a pretext.

When Termination Is Allowed

Termination may be lawful if the employer can prove:

• The employee performed a material breach of duty unrelated to the injury.
• Performance issues existed before the injury and were documented.
• The injury itself does not impair the employee's ability to perform essential job functions.

Common Employer Motives Behind Wrongful Dismissals

Employers sometimes terminate injured workers to:

• Reduce workers' comp costs.
• Avoid setting a precedent for other employees.
• Shorten the recovery period by removing the employee from the workforce.

Steps an Employee Should Take After Termination

1. Document the Termination: Obtain a written notice, date, and reason for dismissal.

2. Review the Workers' Compensation File: Ensure all medical claims and benefits are up to date.

3. Consult an Employment Attorney: Seek legal advice within the statutory deadline (often 30–90 days).

4. File a Wrongful Termination Claim: Submit to the state workers' comp board or labor department.

5. Request a Hearing: Present evidence that the dismissal was linked to the injury.

Statutory Time Limits and Filing Requirements

Each state sets specific deadlines for filing a wrongful termination claim. For example:

Potential Outcomes of a Wrongful Termination Action

Successful claims can result in:

• Reinstatement to the original position.
• Back pay from the date of dismissal to reinstatement.
• Compensatory damages for lost wages and benefits.
• Attorney's fees and costs.

Preventive Measures for Employers

Employers can avoid legal pitfalls by:

• Maintaining thorough performance records prior to an injury.
• Separating injury-related accommodations from disciplinary actions.
• Consulting HR and legal counsel before making termination decisions.

Conclusion

Terminating an employee while they are on workers' compensation is a serious legal violation in most jurisdictions. Employees who face such dismissals should act promptly, document their case, and seek professional legal guidance to protect their rights and benefits.