What Happens If I Get Fired While On Workers’ Comp? (2025)

Workers’ Compensation Insurance and Public Policy

Employers buy workers’ compensation insurance for two reasons. The first is that every state except Texas requires at least some employers to have a workers’ compensation policy or self-insurance to cover employee injuries. Only companies with a workers’ comp exemption can avoid the state’s mandate.

The idea behind these laws is that employees act in their employer’s interests when working. If they suffer injuries while on the job, the employer should bear the financial burden of any required medical care. If the cost of medical care falls on the employee, no one would ever take hazardous positions.

The second reason why employers buy workers’ compensation insurance is that doing so makes them immune from personal injury lawsuits from workers. By making workers’ comp the exclusive remedy for work-related injuries, employers can focus on their businesses rather than defending against worker lawsuits.

Can You Be Fired While on Workers' Comp?

Do you find yourself wondering, “What happens if I get fired while on workers' comp?” If so, know that the legality of an employer’s actions against an employee on workers’ comp depends on the employer’s reasons.

States want injured workers to file workers’ comp claims. These claims help employers identify workplace safety risks and assist employees in returning to work. As a result, most states have anti-retaliation laws prohibiting actions against workers because of their workers’ comp claims.

For example, New York’s anti-retaliation law states that employers cannot discharge or discriminate against employees who do any of the following:

• Claim or attempt to claim workers’ comp benefits
• Request a claim form for a work injury
• Testify or attempt to testify in another worker’s claim hearing

Florida, by contrast, has a narrower retaliation statute. In Florida, employers cannot act against employees because they claimed or attempted to claim worker’s comp benefits. The illegal acts include:

• Discharge
• Threats to discharge
• Intimidation
• Coercion

Although they are worded differently and have separate scopes, these laws share one common element. Both New York and Florida require the employee to prove that the reason for the employer’s action was the workers’ comp claim.

In Florida, workers must prove they were fired “by reason” of their claims or attempted claims. In New York, the employee must show there was no other valid reason for the employer’s action.

If the worker successfully proves that the employer’s actions were retaliatory, they can recover compensation for the losses the actions caused. These might include back wages and job search costs.

Can You Fire Someone on Workers' Comp?

The requirement to prove the retaliatory nature of the employer’s action leaves the door open for employee firings. Specifically, an employer can fire a worker receiving workers’ comp benefits for any reason other than retaliation or other illegal grounds. These other grounds typically involve discrimination under state or federal civil rights laws.

At-will employment allows the employer to fire workers for any reason or no reason except those that violate statutes or public policy. Thus, employers cannot fire someone for filing a workers’ comp claim or being a racial minority, but they can fire them for almost any other reason.

For example, an employer could legitimately fire a worker who’s receiving workers’ comp benefits for any of the following reasons:

• The employee can no longer perform their job duties after their injury
• The worker violated safety rules or acted negligently in causing the accident
• The injured worker endangered other employees
• The business is conducting a general layoff
• The employer no longer needs the employee’s services

If you are an employer and wish to terminate a worker receiving workers’ compensation benefits, you should thoroughly document your actions. The same action may expose you to different liability depending on your reasons.

For example, your workers’ comp insurance cost depends on your company’s experience rating. This rating is calculated using your claim history. A worker’s claim will affect your experience rating and increase your premium rate.

You cannot fire the worker for filing a workers’ comp claim, but you can let them go for creating an unsafe working environment. Even though the firing has the same effect, the reasons drastically alter your risk of facing a lawsuit.

Get Help From ConsumerShield

Employment and workers’ compensation law are complex fields. Equally importantly, there is a lot of variation in anti-retaliation laws and workers’ compensation insurance requirements by state. For instance, some states tend to protect workers, whereas others tend to prioritize employer protections.

ConsumerShield educates workers and employers about their rights and helps them find legal counsel. Contact us for a free case evaluation and a referral to a workers’ compensation lawyer.