Creative Strategies To Help With Your Challenging Legal Matter

Can you be fired if you are on workers’ compensation?

On Behalf of | Jun 2, 2025 | Workers' Compensation

Being injured on the job can be overwhelming. In addition to managing medical appointments and recovery, many workers worry about whether they could lose their jobs while receiving workers’ compensation benefits. This concern is valid, especially when an injury keeps someone away from work for an extended period.

Although laws prohibit employers from firing someone solely because they filed a workers’ compensation claim, there are still situations where termination may legally occur. The difference lies in why the termination happens and how the employer handles it.

Circumstances when an employee on workers’ compensation can be fired

Workers’ compensation laws protect injured employees from retaliation. However, employers are not required to hold a position open indefinitely. If the decision to terminate is based on legitimate business reasons unrelated to the injury or claim, it may be allowed.

  • The job is no longer available due to business changes: If a company shuts down a department, loses a contract or goes through restructuring, it may eliminate a position altogether. This may apply even to employees who are out on workers’ compensation.
  • The employer cannot hold the job open any longer: Smaller businesses may not have the ability to wait months or years for an employee to return. They may argue that it is not sustainable to leave the position unfilled or to continue operating with temporary staff.
  • The employee is no longer able to perform essential job duties: If the injury permanently prevents the employee from doing the job even with modifications, the employer may terminate employment based on the employee’s inability to meet the job’s requirements.
  • Lack of communication or refusal to engage in modified work: In some cases, an employer may offer lighter duties or alternative positions. If the employee refuses reasonable options without medical justification, it could lead to termination.

Every situation is unique, and the reasons behind a termination matter. Obtaining legal guidance can be helpful for understanding your rights and evaluating your options after a workplace injury.