Many injured workers worry about one thing above all: Can you get fired while on workers’ compensation? Yes, you can be fired in certain cases, but you are legally protected-your employer cannot fire you just because you filed a workers’ compensation claim or are receiving benefits. California law prohibits retaliation, and you cannot be terminated solely for seeking workers’ comp benefits.
What this really means is that while an employer can make lawful decisions like layoffs or performance-based terminations, they cannot punish you or terminate you because of your injury claim. Understanding this difference helps you approach recovery with confidence and less fear.
If you’re navigating workers’ comp and concerned about job security, here’s what you need to know about your rights, protections, and the warning signs of retaliation-so you can focus on healing without worrying about losing your job.
Fast Overview: What This Guide Covers
- Does workers’ comp protect your job? Benefits, yes. Job security, no.
- Legal vs. illegal termination: layoffs, performance, and inability vs. retaliation/wrongful termination.
- Employer tactics: sudden write-ups, position elimination, pressure beyond medical restrictions, and harassment.
- Your rights: FEHA/ADA accommodations, §132a claims, and FMLA/CFRA job protection.
- Can you sue? §132a vs. civil FEHA/wrongful termination; damages and deadlines.
- Immediate steps: preserve evidence and contact a workers’ comp lawyer.
What You’re Actually Protected From While on Workers’ Comp in California?
Workers’ compensation gives you medical benefits, wage replacement, and protection from retaliation, but it does not guarantee job security. Being on workers’ comp does not prevent your employer from firing you for legitimate business reasons, as long as the firing is not caused by your injury or claim.
What Workers’ Comp Does (and Doesn’t) Protect?
The table below breaks down what workers’ compensation legally protects, such as medical care and retaliation safeguards, and what it doesn’t, including job security and layoff protection.
| Workers' Comp Protects | Workers' Comp Does Not Protect |
|---|---|
| Medical care expenses for work-related injuries | Protection from termination due to documented misconduct |
| Temporary disability benefits to replace wage loss | Protection from dismissal based on inability to perform essential job duties |
| Permanent disability benefits if you suffer a lasting impairment | Changes to your at-will employment status |
| Supplemental job displacement benefits if you can't return to your old job | Protection from layoffs or restructuring |
| Protection from retaliation for filing a claim | Guaranteed job security while your claim is active |
These benefits apply even if you are no longer employed, but they do not prevent lawful termination.
At-Will vs. Contract Employment While Injured
Most California workers are “at-will,” which means either the employer or the employee can end the employment relationship at any time, with or without cause, so long as the reason is not illegal. Filing a workers’ compensation claim does not change your at-will status.
In contrast, contract employees work under a written agreement that defines the job duration, duties, and valid grounds for termination. These employees can only be terminated for the specific reasons listed in the contract.
Quick Tip: Check your offer letter, union agreement, or employee handbook to confirm your status. Most California workers are at-will unless their agreement says otherwise.
How California Labor Code §132a Applies?
California Labor Code §132a prohibits employers from firing, threatening, or discriminating against an employee because they filed a workers’ compensation claim. If the termination is motivated by the claim itself, it is considered illegal retaliation.
However, your employer can still legally terminate you if they can prove the reason is lawful and unrelated to your injury, such as poor performance, layoffs, or misconduct.
If Labor Code §132a is violated, you may be entitled to:
- Reinstatement to your former position
- Back pay and restoration of lost wages or benefits
- Up to $10,000 in increased compensation
- Reimbursement of legal costs related to the claim
Legal Reasons You Can Still Be Fired While on Workers’ Comp
Not all terminations during a workers’ compensation claim are unlawful. California law allows employers to make business-driven decisions such as layoffs, discipline, or restructuring as long as the reason isn’t tied to your injury or claim.
The key question is whether the employer acted for a valid business reason or used your claim as a pretext to fire you.
Company-Wide Layoffs or Restructuring
You can be legally laid off while on workers’ comp if the termination is part of a company layoff or business restructuring.
California law allows employers to reduce staff due to budget cuts, departmental closures, or downsizing, even if some of the affected employees are on workers’ comp.
Example: If an entire department is closed and both injured and non-injured workers are laid off, the termination is likely legal.
Documented Misconduct or Performance Issues
An employer can fire you while you’re on workers’ comp if they have documented, non-retaliatory reasons for doing so. The misconduct or poor performance must be proven with records, and the decision must not be related to your injury claim.
Common lawful reasons include:
- Repeated lateness or absences
- Written warnings for rule violations
- Consistent underperformance with supporting documentation
Example: If you received multiple warnings for tardiness months before your injury, and your employer follows their usual termination process, the firing may be lawful.
Inability to Perform Essential Job Duties Despite Accommodations
If you’re unable to perform the core functions of your job even with reasonable accommodations, your employer may legally terminate you.
Under California’s FEHA and the federal ADA, your employer must explore reasonable accommodation through an “interactive process”. However, if no modified role is available and your limitations prevent you from doing the essential duties, dismissal is allowed.
Example: A delivery driver with lifting restrictions cannot return to driving, and no other roles exist. The employer documents the accommodation process but cannot find a solution. This termination would likely be lawful.
What Counts as Retaliation or Wrongful Termination in California?
Retaliation happens when your employer takes negative action against you because you filed a workers’ compensation claim or exercised another protected right. Termination, demotion, or harassment that’s tied to your claim may qualify as unlawful.
Retaliation vs. Legitimate Termination
Not all terminations during a workers’ comp claim are illegal. The key difference comes down to the employer’s intent, timing, and documentation.
| Category | Red Flags of Retaliation (Illegal) | Signs of Legitimate Termination (Legal) |
|---|---|---|
| Intent | Sudden write-ups or discipline after your claim | Employer cites documented business reasons not connected to the injury or claim |
| Timing | Fired shortly after filing a claim or returning from leave | The termination process started before the injury or claim |
| Evidence | Inconsistent or vague reasons for firing; injured workers are targeted | Clear records of misconduct or poor performance are applied fairly |
To legally prove retaliation or wrongful termination, three elements must exist:
- Protected Activity: You filed a claim or exercised a legal right.
- Adverse Action: Your employer took a negative employment action against you.
- Causal Connection: There’s a link between your protected activity and the employer’s action.
If these elements are present, you may have a strong claim under Labor Code §132a or FEHA.
SB 497 – The 90-Day Presumption of Retaliation
A 2023 law, SB 497, created a “rebuttable presumption of retaliation” in California. This law automatically assumes retaliation occurred if your employer takes negative action within 90 days of a protected activity, such as filing a workers’ comp claim.
This shifts the burden of proof immediately to your employer, who must then provide a clear, legitimate, and non-retaliatory reason for their action.
Safety Retaliation Under Labor Code §6310
California Labor Code §6310 protects workers who report unsafe conditions to Cal/OSHA or their employer. Firing or punishing a worker for raising safety concerns, whether before or after an injury, may qualify as unlawful retaliation.
Example: If you report a hazardous machine and are injured shortly after, then fired, you may have a strong case under both §132a and §6310.
Employer Tactics That Injured Workers Should Watch Out For
Retaliation doesn’t always look like a sudden firing. While some employers take direct action like firing or demotion, others use subtle tactics to pressure injured workers or push them out. These behaviors may violate California’s labor laws, even if no one uses the word “fired.”
Sudden Write-Ups After Filing a Claim
A common warning sign is a sudden pattern of discipline that didn’t exist before your injury. These “paper trails” are often used to justify termination later.
- You receive negative performance reviews after years of positive feedback.
- Minor mistakes are exaggerated and formally documented.
- Policies that were never enforced before are suddenly applied to you.
“Position Elimination” as a Pretext
Some employers claim your job no longer exists, but still need the work done.
- Your position is cut, but someone new is hired under a different title.
- Only your role is eliminated, even though the company remains stable.
- The timing aligns closely with your injury or claim.
Pressuring Return to Work Beyond Medical Restrictions
Employers may push injured workers to return before they’re medically cleared, creating legal risk for both the employee and the company.
- You’re told your light-duty assignment is ending prematurely.
- Your manager insists you do tasks your doctor has restricted.
- You’re threatened with job loss unless you “push through” your injury.
Harassment, Isolation, or Being Forced Out
Hostile work environments can be used to force injured employees to quit voluntarily.
- Managers or coworkers harass or belittle you for being on light duty.
- You’re excluded from meetings, projects, or daily communications.
- You’re made to feel like a burden, or your work is intentionally sidelined.
Do You Lose Workers’ Comp Benefits If You’re Fired?
No. Being fired does not automatically end your workers’ compensation benefits. If your claim is accepted, you still have the right to medical care and, in many cases, disability payments. Workers’ comp is based on your injury, not your employment status.
However, certain factors affect how long wage replacement continues.
When Wage Replacement Stops vs. Continues?
Workers often worry that being terminated means losing all income support. In reality, whether temporary disability benefits (TD) continue depends on your medical status and work options.
| Situation | Do Wage Replacement Benefits Continue? |
|---|---|
| You are still recovering and can’t work at all. | Yes, temporary disability payments continue until you reach medical recovery (MMI). |
| You can work light duty, but your employer refuses to offer modified work. | Yes, TD benefits continue since no suitable job is provided. |
| You are offered valid modified work within restrictions, but you refuse. | No, TD benefits may stop. |
| You reach maximum medical improvement (MMI). | No, TD ends, but permanent disability benefits may start. |
Medical Treatment vs. Disability Pay
Medical treatment and disability pay are treated differently after termination:
| Benefit Type | What It Covers | Does It Continue After Termination? |
|---|---|---|
| Medical Treatment | Doctor visits, surgery, prescriptions, therapy, rehab for your work injury | Yes - continues as long as your claim is accepted |
| Disability Pay | Wage replacement (temporary or permanent) | It depends - continues if no suitable work is offered, stops at MMI, or if valid modified work is refused |
What Are Your Rights While on Workers’ Comp in California?
Beyond medical care, California law gives injured workers specific rights in the workplace. These include accommodations for restrictions, protection from retaliation, and access to job-protected leave.
Reasonable Accommodations Under FEHA and ADA
Employers must work with you to explore adjustments that allow you to keep working safely. This interactive process includes:
- Light-duty assignments
- Assistive equipment
- Modified schedules or reassignment
Refusing to provide reasonable accommodations can violate FEHA or the ADA.
Right to File Retaliation or §132a Claims
You have the right to challenge employer retaliation. Under Labor Code §132a, remedies may include:
- Reinstatement
- Back pay and restored benefits
- Up to $10,000 in additional compensation
These claims must be filed with the WCAB within 1 year of the retaliatory action.
Job-Protected Leave That Overlaps with Workers’ Comp
Both FMLA (federal) and CFRA (California) provide up to 12 weeks of job-protected leave in 12 months. These laws often run concurrently with workers’ comp leave. They protect your position temporarily but do not extend wage or medical benefits once leave expires.
Can You Sue Your Employer After Being Fired on Workers' Comp?
Yes, you can sue your employer in California if your termination violated the law. Depending on your situation, you may pursue a §132a retaliation claim through the WCAB or a civil wrongful termination lawsuit in court.
When Termination Qualifies for a Civil Lawsuit?
A civil lawsuit applies only in certain categories, such as:
- Wrongful Termination in Violation of Public Policy: Fired for refusing to break the law, reporting illegal conduct, or exercising a legal right (including filing a comp claim).
- Discrimination Based on Disability: Fired because of your medical condition or denied reasonable accommodations required under FEHA or the ADA.
How a §132a Claim Differs From a Lawsuit?
A §132a claim and a civil lawsuit are separate legal paths. They can sometimes be pursued together.
| Category | §132a Claim | Civil Lawsuit |
|---|---|---|
| Where to File | Workers' Compensation Appeals Board (WCAB) | California Superior Court |
| Legal Ground | Retaliation tied to a workers' comp claim | Wrongful termination, disability discrimination, or other illegal acts |
| Potential Damages You Can Recover | Job reinstatement, back pay, up to $10,000 in added compensation, and attorney’s fees | Lost wages (past + future), emotional distress, punitive damages (in serious cases), possible reinstatement |
Deadlines and Statutes of Limitation to File
California law sets strict timelines for filing claims. Missing them can permanently bar your case:
- §132a Claim → File within 1 year of the retaliatory act.
- Civil Wrongful Termination → File within 2 years of termination.
- FEHA Disability Claim → File with the Civil Rights Department (CRD) within 1 year of the act.
Deadlines vary by claim type, so consult a lawyer quickly to protect your rights.
Immediate Steps to Take If You’re Fired While on Workers’ Comp
If you’re fired while on workers’ comp, acting quickly protects your benefits and legal rights. Take these immediate steps in California:
Gather and Preserve All Written Evidence
- Save your termination letter, emails, texts, and performance reviews.
- Keep copies of doctor’s notes, work restrictions, and workers’ comp claim forms.
- Write down the timeline of when you filed your claim, when issues began, and when you were terminated.
Continue Medical Treatment and Benefits Filing
- Attend all scheduled medical appointments.
- Submit medical reports to the insurance company.
- Track costs like prescriptions, mileage, and therapy.
Contact a California Workers’ Comp Attorney Immediately
Your most important next move is contacting a workers’ comp lawyer. The right attorney can investigate your firing, guide you through claims, and fight for maximum recovery.
How a California Workers’ Compensation Lawyer Can Help?
A workers’ comp lawyer makes the difference between facing your employer alone and having someone fight on your side. Once you hire an attorney, here’s what they do for you:
- Investigate Your Firing
- Review your employment history, medical restrictions, and company records.
- Identify suspicious timing or patterns that suggest retaliation.
File the Right Legal Claims
Decide whether to pursue a §132a retaliation claim, a civil lawsuit, or both.
Prepare and submit all filings to the WCAB or Superior Court.
Track every legal deadline to protect your case.
- Negotiate Benefits and Damages
- Demand full workers’ comp benefits owed to you.
- Pursue compensation for lost wages, emotional distress, and in some cases, punitive damages.
- Push for the strongest settlement or trial outcome possible.
How FMLA and CFRA Protect Your Job During Workers’ Comp Leave?
Workers’ comp covers medical treatment and wage replacement, but does not secure your job. That protection can come from the Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA). These laws provide temporary job protection and often run at the same time as workers’ comp leave.
Key Features of FMLA and CFRA:
| Features | FMLA (Federal) and CFRA (California) |
|---|---|
| Job Protection | Provides up to 12 weeks of job-protected leave in 12 months. |
| Employee Eligibility | - 12 months of service - 1,250 hours worked in the past year |
| Health Insurance | The employer must continue group health insurance during leave; the employee pays the regular premium share |
| Interaction with Workers’ Comp | Runs concurrently with workers’ comp leave if both apply |
Modified Work, Part-Time Jobs & Workers’ Comp
- You may take light-duty or part-time work if your doctor approves and it fits your restrictions.
- Temporary disability (TD) benefits are reduced if you earn wages in your new role.
- If your new job pays less than your pre-injury wages, partial disability benefits can cover the difference.
- Always report your income; hiding earnings while collecting benefits can result in fraud charges and loss of benefits.
FAQs About Being Fired While on Workers’ Compensation
Can my employer replace me while I’m on workers’ comp?
Yes, your employer can replace you while on workers’ comp if the reason is legitimate and not retaliatory. Replacement because of your injury claim is illegal.
Do I still qualify for unemployment if I’m fired while on workers’ comp?
Yes, you qualify for unemployment if you are medically cleared to work. If you are still on total disability, you are not eligible.
Can my employer stop paying for health insurance if I’m fired?
Yes, you can work elsewhere while receiving benefits if your doctor approves. Disability pay may be reduced, but medical treatment continues.
Can I be fired after returning to work from a workers’ comp injury?
Yes, you can be fired after returning to work, but only for legitimate reasons unrelated to your claim. If the firing is tied to your injury or restrictions, it may be retaliation.
How long do workers’ comp settlements take?
Workers’ comp settlements take about 12–18 months on average. Simple cases may settle in a few months, while complex claims can last over a year depending on medical reviews and negotiations.
Can you collect workers’ comp after being fired?
Yes, you can collect workers’ comp after being fired if your injury occurred while employed. Eligibility depends on when the injury happened, not your job status after termination.
Can I sue workers’ comp for negligence?
No, you cannot sue your employer for negligence under workers’ comp. Workers’ comp is the exclusive remedy, meaning employees receive benefits without needing to prove fault.
Can I sue workers’ comp for pain and suffering?
No, you cannot sue workers’ comp for pain and suffering. The system only covers medical expenses and lost wages, not emotional or physical suffering.
Talk to a California Workers’ Compensation Lawyer Today
At the Law Office of Roy Yang, we’ve seen how timing, documentation, and medical restrictions often determine whether a firing is lawful or retaliatory. Overlapping rules like §132a, FEHA, and FMLA can create confusion for both workers and employers.
If you’re considering how these laws may apply in your situation, our team is available to share further insight.
