Injuries at work can be both physically and emotionally draining, and if you’ve been hurt on the job in California, the last thing you want to worry about is whether your employment is secure while you’re recovering. Workers’ compensation is designed to provide support, covering medical expenses and lost wages while you heal. But many employees naturally wonder: Can I be fired while on workers’ comp?
California has specific laws in place to protect injured workers, but it’s important to note that those protections are not a guarantee of job security. While workers’ compensation benefits provide necessary financial relief, they do not make an employee untouchable when it comes to termination. Employers still retain the right to fire employees for legitimate reasons, even when they are out on workers’ comp. However, certain safeguards exist to ensure that employers cannot simply dismiss someone for being injured or filing a workers’ compensation claim.
There are legal distinctions between valid and invalid reasons for terminating an employee who is receiving workers’ comp. It’s crucial to understand these distinctions to protect yourself from being wrongfully dismissed.
This article aims to clarify the circumstances in which you can be legally terminated while on workers’ comp, the protections you are entitled to under California law, and the steps you can take to ensure your rights are upheld. By understanding your rights, you can better navigate this challenging time and protect your employment status while focusing on your recovery.
Navigating these complexities can feel overwhelming, especially when you’re trying to recover from an injury. Having a clear understanding of your rights can help alleviate the stress of job insecurity, and ensure that you can make informed decisions if your employment is threatened while you’re on workers’ compensation.
Employers Can Terminate Employees for Valid Reasons
Even while you are receiving workers’ compensation benefits, California law allows employers to terminate employees for legitimate reasons, as long as those reasons are unrelated to your workers’ comp claim. Workers’ compensation laws are designed to protect you financially while you recover from a work-related injury, covering medical expenses and lost wages.
However, these laws do not provide complete immunity from termination. Employers retain the right to manage their workforce and maintain business operations, which may include terminating employees under certain conditions.
It’s important to understand that while workers’ compensation protects you from being unfairly dismissed due to your injury or claim, it does not act as a blanket safeguard for job security. Employers can terminate workers on comp leave as long as they can demonstrate that the reasons for termination are entirely unrelated to the employee’s injury or workers’ comp claim.
Here are some of the most common legitimate reasons for termination:
- Performance Issues
Your employer is not required to keep you on the payroll if you were already underperforming or failing to meet job expectations before your injury. Performance-based terminations can occur if you were consistently missing deadlines, failing to complete tasks, or not achieving the goals set for your position. If there is documented evidence of your poor performance, such as written warnings, performance reviews, or disciplinary actions prior to your injury, your employer can use this as grounds for termination.
Even if you are currently out on workers’ comp, your previous work performance can come into play. Employers are allowed to terminate employees based on pre-existing performance problems, as long as they can show that the termination was not influenced by the workers’ compensation claim.
2. Violation of Company Policies
Employers also have the right to enforce company rules and policies, even when an employee is on workers’ comp leave. Violating company policies—such as engaging in misconduct, dishonesty, harassment, or theft—can result in termination. This includes any actions that breach company rules while you are on the job or during your recovery period. For example, if you were found to have engaged in fraudulent activities or misconduct unrelated to your injury, your employer can legally terminate you while you are receiving workers’ compensation benefits.
Employers are also within their rights to terminate employees who violate attendance policies, fail to report absences, or do not follow proper communication procedures during their leave. However, employers must be careful not to confuse an employee’s inability to work due to a legitimate injury with failure to adhere to attendance policies.
3. Downsizing or Layoffs
In some instances, economic factors may lead to downsizing or layoffs within a company. If your position is eliminated as part of a broader reduction in the workforce due to budget cuts, restructuring, or financial instability, your employer is legally allowed to terminate your employment. As long as the layoff is part of a legitimate business decision that impacts multiple employees or departments, and is unrelated to your workers’ comp claim, this type of termination is generally valid.
In these cases, the employer must be able to show that the layoff was part of an organizational necessity and not a targeted effort to retaliate against you for filing a workers’ comp claim.
4. Job Elimination
Sometimes, businesses undergo restructuring or technological upgrades that make certain positions obsolete. If your role is eliminated as part of this process, your employer has the right to terminate your employment. For example, technological advancements may reduce the need for certain manual jobs, or changing business models may eliminate the demand for specific roles. As long as this elimination is based on legitimate business reasons, and not related to your workers’ compensation status, your employer is permitted to terminate you.
Employers cannot use job elimination as a pretext for retaliation, so it’s important for employees to pay attention to how the company handles other employees in similar positions during these reorganizations. If other employees in your department or similar roles are being laid off as well, this is likely a legitimate elimination of the position rather than discrimination against you for your workers’ comp claim.
5. Legitimate Business Restructuring
In addition to layoffs and job elimination, companies may undergo mergers, acquisitions, or business closures that require workforce restructuring. In these instances, it is common for companies to reevaluate their staffing needs and terminate positions that are no longer necessary. If your company is closing its operations, merging with another business, or transferring ownership, the new management may decide to reduce staff or terminate redundant positions. As long as the termination decision is based on business needs and is not retaliatory, this would be considered a valid termination.
6. Inability to Return to Work After Exhausting Leave
If your medical condition prevents you from returning to work after a reasonable period, your employer may have the right to terminate your employment. Workers’ compensation typically covers medical leave, but if you exhaust your leave and are still unable to perform your job duties, your employer may need to make staffing decisions to fill your role. Inability to return to work after the workers’ compensation process has run its course, especially if you are permanently disabled or require extended time away, could lead to termination for business continuity reasons.
What Happens to Your Benefits After Termination?
If you are terminated while receiving workers’ compensation benefits, you may worry that your benefits will end along with your employment. However, under California law, your workers’ compensation benefits should not automatically stop simply because you have been terminated.
As long as your termination is unrelated to your workers’ comp claim, you are still entitled to continue receiving benefits for medical expenses, lost wages, and rehabilitation as long as you remain eligible under the workers’ compensation system.
Continuation of Workers’ Compensation Benefits
Workers’ compensation benefits are designed to support employees as they recover from work-related injuries, and this protection continues even if your employment ends. The critical factor is whether your termination was based on a legitimate business reason unrelated to your injury or workers’ compensation claim. If your employer terminated you for valid reasons, such as poor performance or company-wide downsizing, your workers’ comp benefits should continue uninterrupted.
These benefits include:
- Medical Care
You are entitled to receive all necessary medical treatment for your work-related injury or illness. This includes doctor’s visits, surgeries, physical therapy, and prescription medications. Your employer’s insurance is required to cover these expenses, even after termination.
- Temporary Disability Payments
If you are unable to work due to your injury, you may be eligible for temporary disability benefits. These payments, which replace a portion of your lost wages, will continue as long as you remain temporarily disabled, regardless of your employment status.
- Permanent Disability Payments
If your injury results in a permanent disability that affects your ability to work, you may be entitled to permanent disability payments. These benefits are based on the severity of your injury and will continue even after your termination, as long as you qualify under California law.
Closing
Navigating the workers’ compensation process while recovering from an injury can be stressful enough without the added worry of being wrongfully terminated. While employers have the right to terminate employees for valid reasons. If you believe your rights have been violated and you were unjustly terminated while on workers’ compensation, it’s important to act quickly and seek legal help.
At Solov & Teitell, we are committed to defending the rights of injured workers. Our experienced workers’ compensation attorneys understand the complexities of California labor laws and are dedicated to protecting you. If you’ve been wrongfully terminated or feel that your rights were compromised while on workers’ comp, we can help you take the right steps toward justice.
Don’t face this situation alone. Contact Solov & Teitell today for a consultation, and let our team of knowledgeable attorneys guide you through the legal process to ensure your rights are fully protected. We will fight to secure the compensation and peace of mind you deserve during this challenging time.