This is a question that often comes up when clients are dealing with a workers’ compensation case. Many are concerned that they’ll have to add searching for employment to their list of things to worry about while recovering from their injury. While there is no requirement that says you have to quit your job if you settle, it’s still possible you may find yourself unemployed after your settlement.
Quite often an employer will ask you to resign as part of a certain type of settlement. These settlements are usually for significantly more money than what would cover your disability rating. If you take a settlement that matches your rating, it is extremely unlikely that your employer will ask you to resign.
The reason this could happen is that when you’re offered a bigger settlement, the insurance company is paying to give up their obligation for your future medical care. So for example, let’s say you were allowed to return to work after being awarded $50,000 for your shoulder injury. If six weeks later you returned to work and re-injured your shoulder, not only would you have the $50,000 from your first claim, you’d also be able to start a new claim.
By asking you to resign as part of the settlement, the insurance company can ensure that they won’t have to pay you twice. In fact, if you hear about someone who was fired after a workers’ comp claim, it’s more likely that they were offered money in order to resign. But their boss would have encouraged the rumor that they were fired...or at least, they won’t do anything to correct the rumor.
This is because if employees think that the claim caused a coworker to be fired, it will prevent other employees from filing a claim themselves — which means that the employer will save money. You shouldn’t let these rumors prevent you from submitting your workers’ compensation claim. While you can be asked to resign, it is illegal for an employer to fire you for filing for workers’ comp.