fired while receiving workers compensation benefits

Unfortunately, receiving workers’ comp benefits doesn’t protect your job. Because North Carolina is an at-will employment state, your employer may generally terminate your employment for any legal reason, or no reason at all, as long as it isn’t in retaliation for filing a claim. For instance, an employer may decide to let you go due to company-wide layoffs, misconduct, or your inability to return to suitable work.

Getting fired while on workers’ comp creates immediate concerns about your income and your ability to support yourself. You may be uncertain of what this change in your employment means for your access to the medical treatment you need.

The good news is that losing your job doesn’t automatically mean you also lose your North Carolina workers’ compensation benefits. What happens next depends on the circumstances of your termination, your medical restrictions, and whether you’ve returned to work.

If you’re worried about when you can be fired while on workers’ comp or how a firing could affect your claim, it helps to know your rights.

Does Being Fired Automatically Stop Workers’ Compensation Benefits?

Being fired doesn’t automatically terminate your North Carolina workers’ comp benefits. If you’re already receiving weekly temporary disability benefits, your employer generally can’t simply stop those payments because your employment ended. If your employer or its insurer wishes to suspend or terminate your benefits, it must first file a Form 24 to obtain permission from the North Carolina Industrial Commission (N.C.G.S. § 97-18.1).

What Happens to Workers’ Compensation Benefits If You Are Fired?

Losing your job doesn’t necessarily mean the end of your paid medical care and disability benefits.

If you were fired while receiving workers’ compensation, the type of benefits and your continuing disability will determine whether those payments continue. For example:

  • Medical benefits may continue for treatment reasonably required because of your compensable workplace injury. C.G.S. § 97-25 requires employers to provide medical compensation for covered injuries.
  • Disability payments may continue if your injury still prevents you from earning the same as your pre-injury wages. Under C.G.S. § 97-29, qualifying workers may receive weekly benefits based on their average weekly wage.

Because termination can lead to disputes over whether your ongoing wage loss is caused by your work-related injury or the loss of your job, it’s important to understand how the circumstances of the firing affect your claim.

What If You Are Fired While You Are Still Under Medical Restrictions?

Being terminated while on workers’ comp can be especially concerning when your doctor hasn’t yet released you to return to your regular job. If you remain unable to work or have restrictions because of your compensable injury, you may still qualify for workers’ compensation disability benefits after termination.

Before you reach maximum medical improvement (MMI), the point at which further medical treatment likely won’t improve your condition, North Carolina law typically allows your employer to offer suitable work that meets your doctor’s medical restrictions. N.C.G.S. § 97-2(22) defines “suitable employment” as work you can perform, given your preexisting and injury-related physical and mental limitations, vocational skills, education, and experience, and that is located within a 50-mile radius of your residence.

If your employer can’t provide suitable work within those restrictions, your injury may continue to limit your wage-earning ability even though the employment relationship has ended. However, N.C.G.S. § 97-32 also dictates that refusing a legitimate offer of suitable employment can result in suspension of compensation unless the Industrial Commission finds that you were justified in refusing the offer.

What If You Return to Work and Then Get Fired?

In certain cases, returning to work and then getting fired can affect your wage replacement benefits. If you were fired for misconduct, your employer may argue that your wage loss resulted from the firing, not your workplace injury.

North Carolina courts have held that termination for misconduct after returning to work may count as a constructive refusal of suitable employment. That said, your employer must prove you were fired for conduct unrelated to the compensable injury and that similar misconduct by another uninjured employee would have resulted in their termination.

In this situation, you may be able to continue receiving benefits if you can prove that your inability to earn wages comparable to your pre-injury earnings is due to your work-related disability, not the act that led to your termination (Seagraves v. Austin Co. of Greensboro (123 N.C. App. 228, 472 S.E.2d 399; 1996)).

How Do You Know If Your Termination May Have Been Retaliatory?

The North Carolina Retaliatory Employment Discrimination Act (REDA) prohibits employers from retaliating against employees for filing or pursuing workers’ comp claims (N.C.G.S. § 95-241). If the timing or other circumstances surrounding your termination suggest that your claim may have played a role, you may have valid concerns about whether your firing was retaliatory.

Some situations that might justify a closer legal review of your termination include:

  • You were fired shortly after reporting a workplace injury.
  • Your employer criticized you for filing a workers’ compensation claim.
  • You were disciplined only after requesting benefits or medical treatment.
  • Your employer gave shifting or inconsistent reasons for the termination.
  • Other employees engaged in similar conduct but were not fired.

Our Raleigh, NC Workers’ Compensation Attorneys Are Ready to Help

If you were fired while on workers’ compensation, turn to the experienced North Carolina workers’ comp attorneys at Younce, Vtipil, Baznik & Banks for clarity, counsel, and support. We offer over 100 years of combined experience with over $150 million in compensation recovered for our clients, including a $2.625 million settlement for an injured construction worker.*

According to one of our satisfied clients:

“From the very first conversation with David, I knew I was in good hands. Whenever I had questions or concerns, Karen and David were both quick to assist me. Not only are they top-notch in their profession, they’re also down-to-earth and compassionate. I am very happy with the outcome that they were able to provide me with. I highly recommend this group for your legal representation. You will be glad you did.” – Carolyn Jones

When you trust Younce, Vtipil, Baznik & Banks with your workers’ comp case, you can expect prompt, personalized communication and attention throughout the legal process. We have an extensive track record of successfully taking on big insurers and a vast amount of institutional knowledge we’re ready to deploy on your behalf. We’re also pleased to provide support to both English- and Spanish-speaking workers.

You don’t have to let your former employer get away with firing you and putting your workers’ comp benefits at risk. Contact Younce, Vtipil, Baznik & Banks right away for a free consultation to learn more about how we can help you fight back.

*Each case is unique, and past results do not guarantee future outcomes.

Joseph Baznik is an attorney at Younce, Vtipil, Baznik & Banks P.A., who specializes in workers’ compensation and personal injury. Joseph speaks both English and Spanish fluently. He is licensed to practice law in the State of North Carolina and the U.S. District Court for the Western District of North Carolina.