Do I Lose Benefits if I Lose My Job While on Workers’ Comp in California?

 Posted on September 28, 2025 in Workers' Compensation

You do not automatically lose benefits if you are fired while receiving  workers’ compensation in California. The law also protects workers from retaliation, ensuring that you cannot be fired just because you are on workers’ comp. However, employers and insurance companies will sometimes act in bad faith. The first step in securing your benefits and protecting your rights is to talk to a Hollister, CA workers’ compensation lawyer who can explain your options.

Will I Still Get Workers’ Compensation Benefits if I Get Fired in California?

Most of the time, your workers’ compensation benefits will continue even if you lose your job. If your injury happened while you were working, you are entitled to workers’ compensation benefits under Cal. Lab. Code § 3600, no matter what happens with your employment later. This means your employer and their insurance company must keep paying for your medical care and lost wages as long as your claim is approved.

Losing your job does not cancel your right to care or benefits that are tied to your injury. However, if you are offered light-duty work that matches your medical limits and you refuse without a good reason, your payments may end. A key aspect to remember is that your right to workers’ compensation eligibility is based on the injury itself, not on whether you still work for the company.

Can I Be Fired for Filing for Workers’ Compensation in California?

California law makes it illegal for employers to punish or retaliate against workers who file a workers’ compensation claim. If you are fired for filing a claim, you may be able to pursue additional remedies such as reinstatement, increased benefits, or even back pay.

That said, employers are still allowed to terminate employees for legitimate reasons unrelated to the injury. For example, it is legal for the company to let you go for downsizing or poor performance that existed before the injury. The challenge is often proving the employer’s true motive. Keeping records of your injury report, your claim, and any communications with your employer can be useful. If you think your employer fired you in retaliation, you should speak to a lawyer immediately.

Signs of Retaliation for a Workers’ Compensation Claim

It is not always obvious that retaliation is happening. Common signs include:

• Sudden negative performance reviews after you file your claim

• Being reassigned to undesirable shifts or duties without reason

• Reduction in pay or hours following your injury report

• Hostile treatment from supervisors or coworkers

• Termination soon after making a claim

Changes to California Workers’ Compensation Law in 2024

As of January 2024, California’s Equal Pay and Anti-Retaliation Protection Act changed how retaliation claims are handled in workers’ compensation cases. It is now the employer’s responsibility to prove that a firing or other negative action was based on a valid reason. Before this change, the burden was on the employee to show they were the victim of retaliation. This shift in the law makes it easier for injured workers to challenge unfair treatment. It also provides stronger protection during a time when they are most vulnerable. Employers must now carefully document their actions and decisions.

Contact a San Benito County, CA Workers’ Compensation Attorney Today

At Cramer + Martinez, our team understands how important workers’ comp benefits are for injured workers. We are here to protect your rights, explain the laws, and fight for the full benefits you deserve. We have been representing clients in this community for nearly 30 years, and our current team of attorneys has more than 20 years of combined experience in workers’ compensation law. Call us today at 408-848-1113 to set up a free consultation with knowledgeable Hollister, CA workers’ compensation lawyers. We offer services in Español.