Can You Get Fired While On Workers Comp

Posted in Workers' Compensation on July 9, 2025

Losing your job is stressful under any circumstances, but it becomes even more complicated when you’re receiving workers’ compensation. Can you get fired while on workers comp? Yes, it’s possible, but there are important legal protections in place that every injured worker should be aware of. Employers must follow specific legal requirements to ensure fairness and avoid retaliation. 

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Can You Lose Your Job While Receiving Workers’ Compensation?

Yes, termination while on workers’ compensation is possible, but it must follow specific legal boundaries. According to AZ Law Help, an employer cannot fire you solely because you filed for workers’ compensation. However, they are permitted to terminate employment for reasons unrelated to the claim. This distinction is critical.

Employers Must Follow Certain Rules

No Retaliation

Employers are prohibited from dismissing employees simply for filing a workers’ compensation claim, speaking up about a work-related injury, or exercising their legal rights. Even when an employee is assigned to light duty, termination isn’t permitted unless there is a valid reason, such as uncovering misconduct like theft during an investigation. 

Protected Class Safeguards

It’s illegal for an employer to terminate a worker based on protected characteristics like race, age, disability, or religion while that worker is receiving workers’ compensation benefits. Any move that singles someone out because of these traits violates employment law.

Valid Business Reasons

While protections exist, employers are still allowed to end employment for legitimate, non-discriminatory reasons. These include poor job performance, company-wide layoffs, restructuring, or situations where an employee can no longer fulfill essential job responsibilities due to their injury. However, they must keep proper documentation to show the decision was based on valid business reasons and not influenced by the worker’s compensation status or injury.

Employment contracts

It can also impact the situation. If you are a contracted employee, your contract might specify valid reasons for termination. Reviewing your contract terms can clarify your employer’s rights and your protection

In some cases, employees wonder, Can you get fired while on workers comp? The reality is complex, but understanding employer obligations and your legal protections can make handling the situation much more manageable.

Common Reasons Employers Fire Employees on Workers’ Comp

Employers sometimes terminate employees on workers’ compensation for reasons unrelated to the injury itself. Common reasons include consistent poor performance that predates the injury, violation of company policies, or misconduct. Organizational restructuring and downsizing can also result in layoffs, regardless of a pending workers’ compensation claim. In each situation, the key is that the employer must demonstrate that the decision was based on legitimate business needs, not retaliation for the workers’ compensation claim.

What to Do Immediately After Being Fired

• Document Everything: Write down the circumstances of your firing, any conversations you had, and the official reason your employer provided. Keep emails, letters, and any paperwork related to your dismissal.
• Request a Written Explanation: Politely ask your former employer for a written explanation outlining the reasons for your termination. A documented record may prove useful if you challenge the decision.
• Consult a Legal Professional: Speaking with a workers’ compensation attorney can help you understand your rights and next moves. An attorney can assess whether retaliation or discrimination played a role in your firing.
• Continue Medical Treatment: Losing your job doesn’t automatically end your workers’ comp benefits. Follow your medical treatment plan closely and keep records of all doctors’ appointments and recommendations.
• File a Complaint if Necessary: If you suspect you were fired in violation of workers’ compensation laws or discrimination protections, you may need to file a complaint with the appropriate labor board or pursue legal action.

Taking the right steps after being fired while on workers’ compensation is more than just a precaution—it safeguards your future benefits and protects your legal rights. 

Workers’ Compensation Eligibility Post-Firing

Being fired while receiving workers’ compensation benefits doesn’t automatically disqualify you from continuing to receive those benefits. Workers who lose their jobs can still be eligible for ongoing medical coverage and disability payments as long as the injury occurred while employed and the workers’ comp claim remains valid.

However, benefits may be reevaluated depending on the circumstances of the termination. It’s essential to stay engaged with your medical care, maintain communication with the insurance carrier, and document your efforts to comply with treatment and vocational recommendations. Keeping thorough records can strengthen your position if disputes arise about continuing your benefits.

Can You Keep Workers’ Compensation After Resigning?

It’s not a simple yes or no. While some benefits, like medical coverage, might continue, wage loss compensation isn’t guaranteed. Several factors influence what happens next:

• Medical Benefits: In many cases, your employer’s insurance carrier must continue paying for necessary medical treatment related to your injury even after you resign.
• Wage Loss Benefits: These benefits could be at risk. Resigning might suggest that you’re voluntarily stepping away from earning opportunities, which can complicate your ability to continue receiving wage loss compensation.

The laws where you live have a major impact on whether your workers’ compensation benefits will continue after you resign. In some instances, leaving your job could affect your eligibility for wage loss benefits. However, resignations linked to medical reasons might allow you to maintain access to certain benefits, depending on the specific rules and circumstances.

Get Help Navigating Your Workers’ Compensation Case

It is never easy to face job loss during recovery from a workplace injury, but understanding your rights is key to protecting your future. At Crossman Law Offices, P.C., we work with individuals across Phoenix, AZ, to provide clear guidance on employment matters and workers’ compensation claims. 

Can you get fired while on workers comp? It’s possible, but taking the right steps can help preserve your benefits and support a smoother path forward. Contact us today at  602-248-0380.

Avery N Crossman

Ms. Crossman is a State Bar Board Certified Workers’ Compensation Specialist and is past Co-Chair of the State Bar Workers’ Compensation Section. She has served as a faculty member at the State Bar Seminar on Professionalism and is a former Judge Pro Tempore in the Arizona County, Justice, and Superior Courts. In the past, she has spoken at seminars on Workers’ Compensation sponsored by the Industrial Commission of Arizona and the Arizona Association of Lawyers for Injured Workers. Ms.Crossman is a long-time member of the Arizona Association of Lawyers for Injured Workers. She is also a member of American Mensa.

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