Quitting Your Job While Your Workers’ Comp Claim Is Pending

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A business worker holding two blocks with workers compensation words

Quitting a job with a workers’ comp claim still pending can negatively impact an injured worker’s case. In most cases, it’s best to avoid quitting and seeking new employment soon after filing for workers’ compensation. On the other hand, employers may still need to pay certain benefits regardless of whether the employee stays with the company.

The following are some of the specific risks posed when an individual quits a job while a workers’ comp claim is pending.

Cause to Believe the Claim Is for a New Job

In some cases, an employee may file a workers’ comp claim, quit the job for which he or she initially filed the claim, and begin working a new job. However, this can give the employer at the first job reason to argue that the claim has to do with the new occupation.

Withheld Payment for Missed Time from Work

If an employee quits his or her initial job and works at a second job, and the injuries involved in the workers’ comp case cause the employee to miss work at that second job, the employer at the first job may reason that they don’t need to pay benefits for any missed time.

Reduced Compensation

Oftentimes, defendants in workers’ comp cases are eager to pay additional compensation in settlements involving an injured employer who retains employment. Quitting voluntarily, however, can cause the defendants to avoid paying this additional amount and further limit the amount of compensation the injured employee can receive.

When It’s Possible to Maintain Benefits After Resigning

Although it’s typically in the injured employee’s best interest to avoid resigning until a workers’ compensation case has settled, employers will still need to pay certain workers’ comp benefits independent of employment status.

For example, individuals on permanent disability, including loss of mobility or limbs, are still eligible to receive a lump-sum judgment or continued payments. If a doctor determines that an injured worker still needs treatment, it’s also still possible to receive medical benefits outside of wage replacement benefits.

Some individuals may also choose to receive a lump-sum judgment if they still require financial assistance after resigning from an employer.

Considering the risks of resigning with a pending workers’ comp claim, injured workers are typically better off waiting until a case has settled before quitting their job.