$300,000
Construction worker
Worksite injury
\
$70,000
Passenger (work vehicle)
Motor vehicle accident
\
$175,000
Driver
Motor vehicle accident
\
$40,000
Server
Slip and fall
\
$132,039.57
Two workers
Motor vehicle accident
\
$25,000
Delivery driver
Ankle injury
\
$110,000
Factory worker
Wrist injury
\
$60,000
Building superintendent
Leg injury
\
$30,000
Hotel security
Struck by object
\
$75,000
Security guard
Slip on ice
\
$50,000
Auto dealership worker
Struck by cabinet
\
$120,000
Deli cashier
Unpaid overtime
\
$35,000
Healthcare worker
Wrist injury
\
$32,000
Cook
Hand injury
\
$70,000
Airport worker
Motor vehicle accident
\
$29,000
Building superintendent
Unpaid overtime
\
$10,000
Server
Toe injury
\
City Background

News & Articles

Can Your Employer Fire You While You’re on Workers’ Compensation in New York?

Feb 17, 2026

WRKRS Law Firm PLLC represents injured employees across New York who are concerned about their job security while receiving workers’ compensation benefits. One of the most common fears workers have after reporting an injury is simple but urgent: Can my employer fire me while I’m out on workers’ compensation?

The answer is not always straightforward. New York is an at-will employment state, meaning employers can generally terminate employees for many reasons. However, they cannot fire you for filing a workers’ compensation claim. Understanding the difference between a legal termination and unlawful retaliation is critical for protecting your rights.

Understanding At-Will Employment in New York

New York follows the at-will employment doctrine. This means that, in most situations, an employer may terminate employment at any time and for almost any reason — or even no stated reason at all.

However, there are important exceptions. Employers cannot terminate employees for reasons that violate state or federal law. One of those protections involves retaliation for exercising legal rights, including filing a workers’ compensation claim.

At-will employment does not give employers permission to punish injured workers for seeking benefits.

Is It Illegal to Fire Someone for Filing a Workers’ Compensation Claim?

Yes. Under New York law, it is illegal for an employer to retaliate against an employee for filing or attempting to file a workers’ compensation claim.

Retaliation may include:

  • Termination
  • Demotion
  • Reduction in hours
  • Pay cuts
  • Harassment or intimidation

If the termination is directly connected to the workers’ compensation claim, it may violate the law.

When Can an Employer Legally Terminate an Injured Worker?

While retaliation is prohibited, not every termination during a workers’ compensation claim is illegal. Employers may still terminate employees for legitimate, non-retaliatory reasons.

Examples may include:

  • Company-wide layoffs
  • Documented performance issues unrelated to the injury
  • Business closures
  • Elimination of the position

The key issue is whether the termination was motivated by the workers’ compensation claim.

How Timing Can Raise Red Flags

Timing often plays a significant role in these cases. If an employee is terminated shortly after reporting an injury or filing a claim, that timing may raise concerns.

Red flags may include:

  • Termination immediately after reporting the injury
  • Sudden performance complaints with no prior documentation
  • Inconsistent explanations for the firing
  • Replacement by another employee shortly after termination

While timing alone does not prove retaliation, it can be an important factor.

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

Many workers assume that being fired automatically ends their workers’ compensation benefits. That is not necessarily true.

In many cases:

  • Medical treatment benefits may continue
  • Disability payments may still be available
  • Permanent disability benefits may still apply

Workers’ compensation benefits are generally tied to the injury — not employment status.

However, returning to work elsewhere or refusing suitable work may affect wage replacement benefits.

Can You Collect Unemployment While on Workers’ Compensation?

This situation can become complex. Unemployment benefits typically require that a person be ready, willing, and able to work. If an injured worker is medically unable to work, unemployment may not be available.

If the worker is partially disabled and capable of limited work, eligibility may depend on the circumstances.

Because these benefits systems intersect in complicated ways, careful evaluation is important.

Common Mistakes Injured Workers Make

Fear of termination often leads injured employees to make decisions that unintentionally weaken their legal position.

Common mistakes include:

  • Returning to work before medical clearance
  • Avoiding filing a legitimate claim
  • Accepting informal severance without review
  • Failing to document conversations

Understanding your rights early can prevent long-term consequences.

Retaliation Can Be Subtle

Not all retaliation is obvious. Some employers avoid direct termination and instead create pressure for the employee to resign.

Subtle retaliation may involve:

  • Drastic schedule changes
  • Hostile treatment from supervisors
  • Reassignment to undesirable duties
  • Increased scrutiny or write-ups

When negative treatment begins after filing a claim, it may warrant further review.

What To Do If You Believe You Were Fired Because of Your Injury

If you suspect your termination was connected to your workers’ compensation claim, acting promptly is essential.

Helpful steps may include:

  • Saving termination letters and communications
  • Documenting timelines of injury reporting and termination
  • Preserving performance reviews
  • Seeking legal guidance as soon as possible

Delays can affect your ability to pursue remedies.

Legal Remedies for Retaliatory Termination

If termination is proven to be retaliatory, remedies may include:

  • Reinstatement to the position
  • Recovery of lost wages
  • Penalties against the employer
  • Other statutory relief

Each case depends on its specific facts, which makes early evaluation critical.

Balancing Recovery and Job Security

Recovering from a workplace injury is physically and emotionally demanding. Adding job insecurity can make the situation overwhelming. Workers should not feel forced to choose between their health and their livelihood.

New York law provides important protections for injured employees, but those protections only work when workers understand them.

Protecting Your Rights After a Workplace Injury

Being injured does not strip you of your employment rights. While employers retain certain management rights, they cannot legally punish you for seeking workers’ compensation benefits.

WRKRS Law Firm PLLC is dedicated to protecting injured workers across New York who fear retaliation or termination after filing a workers’ compensation claim. The firm works to help employees understand their rights and take appropriate action when those rights are violated.

If you were fired while receiving workers’ compensation benefits or believe your termination was connected to your workplace injury, WRKRS Law Firm PLLC can help you evaluate your options and protect your rights under New York law.

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