What Constitutes a Legal Layoff While on Workers’ Comp?
Employers are not required to give special treatment to those on workers’ compensation benefits. Simply being on workers’ comp for temporary disability does not protect you from being laid off. Employees on leave can be fired or laid off for any legal reason not related to the injury. Layoffs are usually well-thought out and planned in advance.
So, if you think you have been targeted, look at the bigger picture to be sure. If your employer has proof that the layoff you experienced was planned in advance and impacted other employees besides you, you would not have a case for wrongful termination. A company is well within its rights to protect its financial stability even if some employees lose their jobs in the process.
Defining Workers’ Compensation Benefits
In order to answer the question of whether you can be laid off while on workers’ comp, let’s first define what workers’ comp is and what it covers.
Workers’ compensation is a type of mandatory insurance that all employers are required to have in the event that an employee becomes ill or injured as a direct result of their job. If this were to happen, workers’ comp benefits would cover the employee’s lost wages, medical costs, and potentially their rehabilitation expenses. These benefits enable employees to pay their bills and cover their living expenses while they are recovering and unable to work. If an employee accepts these benefits, they forfeit their rights to sue the company for negligence.
Learn about the rules for when employers can and can’t lay off or fire injured employees who’ve filed workers’ comp claims.Updated by
Whether you can be laid off or fired while receiving workers comp depends on the reason for the layoff. Receiving workers comp generally protects you from being laid off, but not all layoffs are illegal.
Heres what you need to know if youve been laid off while collecting workers comp.
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