Filing for workers’ compensation while dealing with a painful injury can bring a mountain of stress, especially if you start worrying about job security. For employees in Minnesota, a common fear is that needing light-duty restrictions or taking time off will make them a target for termination.
The Myth of Absolute Job Protection
Minnesota operates as an “at-will” employment state, meaning employers maintain broad discretion to fire an employee for nearly any reason—or no reason at all. However, this power is not limitless.
While seeking workers’ compensation does not grant an employee total immunity from being fired for legal reasons, an employer is strictly prohibited from firing someone in retaliation for exercising their legal rights or filing a workers’ comp claim.
Furthermore, the Minnesota Workers’ Compensation Act does not legally require an employer to hold a specific job open for an injured worker indefinitely. The only primary tool for strict job protection comes from the federal Family and Medical Leave Act (FMLA), which may require covered employers to protect an employee’s job for up to 12 weeks.
Despite the lack of a permanent job-holding mandate, Minnesota law forbids employers from refusing to offer continued employment within an worker’s physical restrictions if such work is available. Because firing an injured worker opens the door to massive financial liabilities, many employers choose to hold jobs open voluntarily.
Post-Termination Benefits: Four Scenarios
If you qualify for wage loss benefits due to a workplace injury, you can generally still collect workers’ compensation after being fired. Your eligibility and the type of benefits you receive depend heavily on the circumstances of your termination, which fall into four main categories:
- Scenario 1: No Light-Duty Work Available If your employer terminates you simply because they do not have any open roles that accommodate your injury-related physical restrictions, the workers’ compensation insurer must act. They are required to begin paying Temporary Total Disability (TTD) benefits—which act as weekly wage-replacement checks—starting exactly on your termination date.
- Scenario 2: Fired for an Unrelated Reason If you are let go for a reason completely unrelated to your injury, the insurer will look closely at your job search. If you are actively looking for work but your options are limited by your injury restrictions, the insurer may be required to pay TTD benefits. Alternatively, if the best-paying job you can secure results in lower pay than your old job because of your injury, you may qualify for Temporary Partial Disability (TPD) benefits to make up the difference.
- Scenario 3: Fired for Misconduct (With No Prior Wage Loss) In legal terms, “misconduct” refers to intentional, wrongful behavior rather than an honest mistake. If you had not been receiving wage loss checks and are fired for misconduct, the insurer does not have to pay you immediately since the firing wasn’t caused by the injury. However, if your injury causes subsequent underemployment or unemployment down the road, the insurer may eventually have to pay wage loss benefits.
- Scenario 4: Fired for Misconduct (With Ongoing Wage Loss) If you were already actively receiving wage loss benefits and get fired for intentional misconduct, the insurer is legally allowed to stop paying TTD benefits. However, if your injury ultimately forces you into a lower-paying job later on, you may still retain the right to collect TPD benefits.
The Bottom Line
Getting fired while on light duty or during recovery is highly stressful, but it does not mean your claim is over. Employers often utilize light-duty programs to fulfill their legal obligations, but if they choose to terminate you, your medical restrictions dictate what the insurance company owes you. Navigating these overlapping layers of at-will employment and insurance liability requires a careful analysis of your physical restrictions.