Many injured workers in Illinois worry about job security after filing a workers’ compensation claim. A common question that comes up far too often is whether an employer can legally fire someone who is receiving workers’ comp benefits. The short answer is that being on workers’ compensation does not automatically protect you from termination, but it also does not give employers free rein to fire you for unlawful reasons.
Illinois law prohibits employers from firing an employee in retaliation for exercising their right to seek workers’ compensation benefits. Retaliation can include termination, demotion, reduced hours and other adverse actions taken because an employee reported an injury, filed a claim or testified in a workers’ compensation case. If an employer’s decision is motivated by the workers’ comp claim itself, that termination may be unlawful, even if the employer points to vague or shifting explanations.
However, employers are still allowed to terminate employees for legitimate, non-retaliatory reasons, even while a workers’ compensation claim is pending. Legal reasons for termination can include documented performance issues, company-wide layoffs, violation of workplace policies or the elimination of a position for business reasons. An employer is also not required to hold a job open indefinitely if an employee cannot return to work and no reasonable accommodation is available. The key issue is whether the termination would have happened regardless of the workers’ compensation claim in question.
When a wrongful termination is disguised as a rightful one
A common challenge for injured workers is that illegal retaliation is often disguised as a lawful termination. Timing can matter. Being fired shortly after reporting an injury or filing a claim may raise red flags, especially if the worker at issue had no prior disciplinary history. Inconsistent explanations, lack of documentation or harsher treatment compared to other employees can also point to retaliation.
If you are or have been fired while receiving workers’ compensation benefits, do not assume that the termination is automatically legal or illegal. There are important steps you should take. Preserve all documentation, including termination notices, performance reviews, medical restrictions and communications with your employer, for starters. Avoid signing severance or release agreements without legal review, as these documents can waive important rights.
An experienced legal team can evaluate whether the termination at issue was lawful, protect your ongoing benefits and determine whether additional legal action is appropriate. Being fired while injured can feel overwhelming, but you still have rights, and timely legal guidance can make a meaningful difference when it comes to protecting them.