Can You Be Fired While on Workers’ Compensation in Pennsylvania?

Key Takeaways

• Pennsylvania employers can fire employees receiving workers’ compensation benefits for lawful reasons, but they can’t terminate workers in retaliation for filing claims.
• Pennsylvania’s at-will employment doctrine allows termination for layoffs, misconduct, performance problems, and other legitimate business reasons.
• Warning signs of retaliation include suspicious timing, hostile comments, pressure to withdraw a claim, and inconsistent disciplinary action.
• Losing your job doesn’t necessarily end your workers’ compensation benefits, including wage-loss payments and medical treatment.
• The FMLA and ADA may provide job protection, medical leave, or reasonable accommodations while you’re recovering from a workplace injury.
• If you’re fired while receiving workers’ compensation, preserve employment records, continue medical treatment, and consult an attorney to protect your benefits and legal rights.

If you’re off work due to a workplace injury, you may be worried about losing your job. Your boss didn’t seem happy after learning you’d need several weeks to recover, but can they go so far as to fire you? In other words, can you be fired while on workers’ comp in Pennsylvania?

The short answer is yes, as Pennsylvania is an at-will state. But your employer can’t fire you in retaliation for filing a workers’ compensation claim. Losing your job also doesn’t necessarily mean losing your benefits. In this guide, we explain when termination is lawful, how it affects your benefits, and what you can do to protect your rights.

Can Your Employer Legally Fire You While You’re Receiving Workers’ Comp?

Pennsylvania follows the at-will employment doctrine. This means your employer can terminate your employment at any time, with or without notice, for a lawful reason. However, an employment contract or collective bargaining agreement may restrict your employer’s ability to dismiss you.

Fortunately, employers also can’t violate laws protecting employees from retaliation or discrimination. The Pennsylvania Supreme Court confirmed in Shick v. Shirey (1998) that employers can’t use at-will employment to justify firing someone in retaliation for filing a workers’ compensation claim.

Legitimate Reasons an Employer May Terminate an Injured Worker

Your employer may have lawful grounds to terminate your employment while you’re recovering from a workplace injury. Examples include:

• Workforce Reductions: Your employer eliminates positions because of layoffs or reduced staffing needs.
• Business Closures: Your employer closes a facility or permanently discontinues operations.
• Employee Misconduct: You violate workplace policies for reasons unrelated to your injury or workers’ compensation claim.
• Documented Performance Problems: Your employer dismisses you for performance deficiencies unrelated to your claim.
• Inability to Perform Job Duties: Your injury prevents you from performing your job, and your employer has fulfilled any obligations to provide medical leave or reasonable accommodations under the FMLA or ADA.

If, on the other hand, your employer fired you because you exercised your workers’ compensation rights, you may have grounds for a wrongful discharge claim.

When Is Firing an Employee on Workers’ Comp Illegal in Pennsylvania?

Pennsylvania recognizes retaliatory discharge as an exception to at-will employment, allowing injured workers to bring wrongful termination lawsuits when employers dismiss them for exercising their workers’ compensation rights.

Retaliation for Filing a Workers’ Compensation Claim

As we mentioned earlier, in Shick v. Shirey, 716 A.2d 1231 (Pa. 1998), the Pennsylvania Supreme Court ruled that employees can sue for wrongful discharge when they’re fired in retaliation for filing workers’ compensation claims.

The case involved an employee who injured his knee at work and received workers’ compensation benefits. When his doctor cleared him to return, his employer allegedly told him that his job was no longer available because he’d filed a claim. The court ruled that the employee’s allegations established a basis for a wrongful discharge lawsuit.

Warning Signs of Workers’ Compensation Retaliation

Your employer may claim that your dismissal was unrelated to your workplace injury. However, certain actions can indicate that filing your workers’ compensation claim influenced the termination decision. Warning signs include:

• Suspicious Timing: Your employer fires you shortly after you report an injury or file a workers’ compensation claim.
• Hostile Comments: Your supervisor complains about your claim, medical expenses, or time away from work.
• Pressure to Abandon Your Claim: Your employer threatens your employment unless you withdraw your workers’ compensation claim.
• Inconsistent Disciplinary Action: You’re punished for conduct that doesn’t result in similar consequences for other employees.
• Sudden Performance Complaints: Your employer cites performance deficiencies that weren’t documented before your injury.
• Changing Explanations: Your employer gives conflicting reasons for terminating your employment.

What Happens to Your Workers’ Compensation Benefits If You’re Fired?

Losing your job doesn’t mean your workers’ compensation benefits will end. Pennsylvania determines your eligibility for wage-loss and medical benefits based on your work-related injury, not simply your employment status. However, the reason for your termination and your ability to work can affect the benefits you receive.

Can You Continue Receiving Wage-Loss Benefits?

If your workplace injury prevents you from working, you may continue receiving wage-loss benefits after your employer terminates your employment. Under Section 306 of the Pennsylvania Workers’ Compensation Act, wage-loss benefits compensate injured employees for lost earning capacity resulting from workplace injuries.

If you returned to light-duty work before being fired, the reason for your dismissal can affect your payments. In Vista International Hotel v. Workers’ Compensation Appeal Board (Daniels), 742 A.2d 649 (Pa. 1999), the Pennsylvania Supreme Court addressed how employee misconduct and the continuing effects of a workplace injury influence wage-loss eligibility. Termination for misconduct doesn’t, by itself, eliminate compensation for lost earning capacity caused by the injury.

Will Workers’ Compensation Still Pay Your Medical Bills?

Under Section 306(f.1) of the Pennsylvania Workers’ Compensation Act, your employer or its insurance carrier remains responsible for reasonable and necessary medical treatment related to your workplace injury. Losing your job doesn’t terminate this obligation.

Your medical benefits may continue paying for:

• Doctor appointments and specialist consultations.
• Surgery and hospital treatment.
• Prescription medications.
• Physical therapy and rehabilitation.
• Medical equipment, orthopedic devices, and prosthetics.

Medical benefits can continue even when you’re no longer receiving wage-loss payments. However, your employer’s regular health insurance is separate from workers’ compensation and may end following termination.

When Can Workers’ Compensation Benefits Be Reduced or Stopped?

Section 413 of the Pennsylvania Workers’ Compensation Act permits changes to benefits when the worker’s disability or earning capacity changes. Depending on the evidence, an insurer may seek to reduce, suspend, or terminate payments when:

• You’ve Fully Recovered: Medical evidence establishes that your work-related disability has ended.
• You’ve Returned to Work: You’re earning wages equal to or greater than your pre-injury earnings.
• Your Earning Capacity Has Increased: Evidence establishes that you can perform suitable employment despite continuing medical restrictions.
• A Workers’ Compensation Judge Orders a Change: A judge reviews the evidence and grants a petition to modify, suspend, or terminate benefits.

Pennsylvania also permits certain benefit changes through signed agreements or statutory notification procedures. If you receive a Notification of Modification or Suspension (LIBC-751) after returning to work, you have 20 days from receiving the notice to challenge it.

Your employer’s decision to fire you and an insurer’s decision to change your workers’ compensation benefits are separate legal actions. If your payments are reduced or stopped, you have the right to challenge that decision through Pennsylvania’s workers’ compensation system.

Does Your Employer Have to Hold Your Job While You’re on Workers’ Comp?

Pennsylvania’s Workers’ Compensation Act doesn’t require your employer to hold your position open throughout your recovery. However, federal employment laws may protect your job while you’re receiving treatment or recovering from a workplace injury.

Family and Medical Leave Act (FMLA) Protections

The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 workweeks of unpaid, job-protected leave during a 12-month period for qualifying medical conditions, including serious workplace injuries.

To qualify, you must meet these criteria:

• You’ve worked for your employer for at least 12 months.
• You’ve completed at least 1,250 hours of work during the preceding 12 months.
• You work for an employer subject to the FMLA.
• Your employer has at least 50 employees within 75 miles of your worksite.

During FMLA leave, your employer must maintain your group health insurance under the same conditions as if you were working. When you return, you’re entitled to your previous position or an equivalent job with the same pay, benefits, and working conditions. However, the FMLA doesn’t protect you from layoffs or terminations that would have occurred regardless of your leave.

Americans with Disabilities Act (ADA) Protections

The Americans with Disabilities Act (ADA) may protect your employment if your workplace injury qualifies as a disability. The ADA, which applies to employers with at least 15 employees, calls for reasonable accommodations that allow workers with disabilities to perform their job duties.

Depending on your medical restrictions, reasonable accommodations may include modified duties, adjusted work schedules, reassignment to a vacant position, or additional medical leave. Your employer must provide one unless it would impose an undue hardship on its operations.

If your disability needs further medical leave, your employer may have to keep your position available during that leave. However, the ADA doesn’t require an employer to provide indefinite leave or eliminate the fundamental duties of your position.

What Should You Do If You’re Fired While Receiving Workers’ Compensation?

If your employer fires you while you’re receiving workers’ compensation benefits, taking the following actions can help protect your right to continued payments as well as identify possible retaliation.

1. Request a Written Explanation for Your Termination

Ask your employer to explain why you’re being dismissed and request that explanation in writing. Pennsylvania employers aren’t ordinarily required to provide a written reason for termination, but you can still request one. Compare the explanation with your performance reviews, disciplinary records, and previous communications with your supervisor.

2. Preserve Evidence of Possible Retaliation

Save emails, text messages, termination notices, and other communications concerning your injury or workers’ compensation claim. Document any statements suggesting your employer was unhappy about your claim or medical leave. Keep copies of positive performance evaluations and records showing changes in how your employer treated you after your injury.

3. Continue Following Your Medical Treatment Plan

Attend scheduled medical appointments and follow your doctor’s work restrictions. Ask your medical providers to document your condition, treatment, and ability to work. These records can help establish your continued eligibility for wage-loss and medical benefits if the insurance carrier disputes your claim.

4. Notify Your Workers’ Compensation Insurance Carrier

Inform the insurance carrier that your employment has ended and report any changes in your earnings. Review correspondence concerning your benefits, including notices of modification, suspension, or termination. Don’t ignore requests for information or notices requiring a response.

5. Contact a Pennsylvania Workers’ Compensation Attorney

A Pennsylvania worker’s comp attorney can examine how your termination affects your benefits, review the insurance carrier’s actions, and represent you in disputes before a workers’ compensation judge. If your dismissal appears retaliatory, an experienced attorney can also assess a wrongful discharge claim.

FAQs About Being Fired While on Workers’ Comp in Pennsylvania

Protect Your Workers’ Compensation Benefits With Metzger Wickersham

Being fired while receiving workers’ compensation benefits doesn’t mean your employer has broken the law. However, if your employer terminated you in retaliation for filing a claim, you may have grounds for legal action. Your termination also doesn’t necessarily end your right to wage-loss payments or medical treatment for your workplace injury.

At Metzger Wickersham, we represent injured workers throughout Pennsylvania in disputes involving workers’ compensation benefits. If you’ve been fired while receiving benefits, we can review your claim, challenge improper reductions or suspensions, and represent you before a workers’ compensation judge. To schedule a free consultation, call (717) 366-6944.