Suffering an injury at work can be a common motivation for an employee to decide to move from their job. However, if an employee is receiving workers’ compensation benefits, there can be repercussions on their ability to continue receiving benefits. As workers’ comp is paid out by an employer to an employee, voluntarily quitting could impact the prior employee’s eligibility.
The Benefits of Workers’ Comp
Workers’ comp benefits are legally required in most states, though the extent of the coverage varies according to an individual company and the policy provider. There are several types of benefits that could be offered to an employee, and these include:
- Impairment benefits
- Temporary disability
- Permanent total disability
- Death benefits
Within each of the categories, funds may be provided for lost wages, medical or rehabilitation treatments and disability pay. For an employee who quits a job, there are both guarantees of continued coverage and potential loss of eligibility. Medical care assistance isn’t affected by quitting, so a workers’ compensation plan must continue to pay for any medical treatments required for the injury.
The Loss of Eligibility
While an employer cannot deny benefits for medical care, should an employee quit, there are situations that can legally support a denial of eligibility. Here are a few of those situations.
Temporary Partial Disability
If your organization has made accommodations for an injured employee to return to work or provided an alternate position until the employee was medically released for the prior position, the employee is eligible to receive temporary partial disability pay to make up for any difference in wages. This could be due to reduced hours or a position with lesser pay. However, when an employee quits the job, they lose the right to this benefit and payments.
Wage Benefits
You must provide wage replacements to an employee who is recovering from work and temporarily unable to fulfill their role. Under doctor’s orders, an injured employee could receive lost time payments for the period of temporary unemployment. Should an employee quit, employers can argue that the individual has voluntarily chosen to limit income opportunities and deny wage replacement.
Permanent Disability Benefits
Injuries that prevent an employee from doing their former job can grant eligibility for permanent disability benefits. As long as a doctor verifies the work restrictions, the employee can receive wages through disability payments. Employers may be able to deny these benefits, though an employee may try to receive a disability settlement through the legal system.
The Employer Responsibility
It is in a company’s best interest to make a reasonable effort to support an injured employee, whether it means administering eligible benefits or crafting a robust, return-to-work strategy. Not only can these actions help with employee retention, they can also reduce the possibility of legal action taken against the company.
About InsureMyWorkComp
InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.