If you are receiving workers’ compensation benefits and are considering quitting your job, we are here to help you. Determining whether to quit is a common question—and an important one. Whether you are facing a toxic work environment, want to explore new opportunities, or need a break to focus on recovery, quitting while on workers’ comp is legally possible; however, it is also a decision with significant risks and legal implications.
At Pond Lehocky Giordano, we have helped thousands of injured workers understand their rights and work through difficult choices like this one. It is important to understand what happens if you quit your job while receiving workers’ comp, the potential downsides, and how to protect yourself.
Can You Quit Your Job While on Workers’ Compensation?
Yes, you can legally resign from your job while receiving workers’ compensation benefits, but that does not mean it is always a smart move. Your benefits will not automatically stop just because you leave your job, but they could be reduced or challenged, especially if the insurance company sees your resignation as an opportunity to dispute your ongoing eligibility.
That is why speaking with a knowledgeable workers’ compensation attorney before making any decisions is crucial. What may seem like a straightforward resignation could cost you valuable wage loss benefits if not handled strategically. That’s where Pond Lehocky Giordano comes in.
The Downsides to Quitting Your Job While on Workers’ Comp
While you can legally resign from your job while receiving workers’ compensation benefits, it is not always a smart move. You could potentially lose the benefits you have worked so hard to win, which makes quitting your job a decision to be carefully considered.
Can You Still Keep Your Medical Benefits After You Quit?
Yes. Your medical treatment will often continue even after you resign, especially if your injury occurred while employed. Workers’ compensation typically covers the cost of medical care directly related to your work injury, regardless of your employment status.
However, there’s no guarantee. If the insurance company believes your condition has improved or that you left the job to avoid returning to work, they may challenge your continued eligibility. That is why it is best to stay in close contact with your doctor and ensure all medical documentation is current.
Can Your Employer Deny Workers’ Comp Benefits if You Quit?
Your employer cannot deny your claim simply because you resigned, especially if the injury was reported and documented while employed. However, your former employer or insurance company can request a hearing to reduce or suspend your wage loss benefits if they believe you can work and are choosing not to.
In some cases, quitting might appear as if you are avoiding work, especially if light-duty accommodations were available. This perception could be enough for insurers to argue that your loss of income is no longer their responsibility.
Should You Stay if Your Employer Offers Light-Duty Work?
If your employer offers light-duty work that fits your medical restrictions, consider accepting it temporarily. While you are not legally required to take such a position, refusing it or quitting your job altogether could suspend your wage benefits.
Insurance carriers often interpret a refusal to return to suitable work as a sign that you are not making a good-faith effort to recover. Even if the job is not ideal, sticking with it could help preserve your benefits while your claim progresses.
Can You Switch Jobs While on Workers’ Comp?
You can change jobs while receiving workers’ compensation, but proceeding carefully is essential. If your new job pays less or requires different physical demands, it could impact your benefits positively or negatively.
If you find a job within your medical limitations that pays a lower wage, you may still be eligible for partial disability benefits to cover the wage difference. However, accepting a job that exceeds your doctor’s restrictions can be seen as evidence that you are no longer injured, potentially jeopardizing your entire claim.
Insurers Might Challenge Your Workers’ Comp Claim After You Resign
You risk inviting additional scrutiny during a workers’ comp claim when you quit your job. Insurance companies may use your resignation to question whether you were genuinely injured or whether you are exaggerating symptoms to avoid work.
They may even initiate surveillance, dig through your social media, or request independent medical evaluations to dispute your claim. Once you leave your job, your employer may be less cooperative in providing records or supporting your case.
When to Wait Before Resigning
If you are considering quitting, waiting until your claim is more stable may be better. This could mean you have:
- Reached maximum medical improvement (MMI)
- Received a formal impairment rating
- Negotiated a settlement agreement
Timing matters. Quitting too early could reduce your leverage and harm your ability to secure compensation.
Negotiating a Settlement Before Leaving Your Job
If you plan to resign, it may be worth exploring a lump-sum settlement of your workers’ comp claim first. Settling your case before leaving can provide financial security and close out your claim in a controlled manner, rather than risking benefit reductions after resignation.
However, settlement negotiations should never be rushed. An experienced workers’ comp lawyer can help you negotiate fair terms and ensure you are not being lowballed.
If You Need Help with Your Workers’ Comp Claim, We’re Here
Quitting your job while on workers’ compensation is a complex decision that should be made with the guidance of a skilled attorney. At Pond Lehocky Giordano, we are committed to helping injured workers protect their rights, secure their benefits, and confidently move forward.
With over 250 years of combined legal experience and more than 100,000 successful cases, our attorneys are trusted advocates for workers nationwide. Whether you are considering resignation, settlement, or switching jobs, we are here to help you understand your options and avoid costly mistakes.
Call or complete our contact form today to schedule a free, no-obligation consultation. You do not have to make this decision alone, and you do not have to risk your benefits.
