A work injury can prevent employees from earning an income while putting them in a difficult financial position. Workers’ compensation benefits are designed to provide injured employees with the funds they need during recovery.
However, some employees may wonder if they can work another job while receiving workers’ compensation benefits, usually to supplement income.
Workers’ compensation insurance is designed to help employees recover and return to work, which can make it difficult to justify a new job. Yet, limited income and partial or permanent disability from a work-related injury could allow for a job change.
While receiving workers’ compensation benefits, you can seek other employment. However, it’s crucial to consult your medical provider and consider how a new job might impact your benefits eligibility.
Working with a workers’ compensation lawyer can also help injured workers explore their employment options after a workplace injury.
Purpose of Workers’ Comp
Workers’ compensation benefits provide injured workers with the money and benefits they need during recovery to cover medical bills and lost wages. Workers’ comp also provides an employee with insurance coverage, allowing them to receive the medical services they need while recovering.
Employers purchase workers’ compensation insurance on behalf of employees. The plan activates once an injured employee files a claim with the provider.
Types of Benefits
Generally, workers’ compensation covers medical expenses. However, eligible employees may also receive the following types of workers’ compensation benefits:
- Medical Care: Workers’ compensation covers all medical costs related to the work-related injury. This bill includes doctor and specialist visits, surgical procedures, and treatment options.
- Prescriptions: Workers’ comp benefits include all medication costs.
- Lost Wages: Workers’ comp also covers approximately two-thirds of the employee’s average weekly wages.
- Rehabilitation: Workers’ comp medical benefits may also cover rehabilitation costs.
Working While Receiving Workers’ Compensation Benefits
It may be possible to get a new job while collecting workers’ compensation insurance. An injury can prevent someone from working altogether or, in some cases, performing the tasks of their current role. However, since workers’ compensation benefits only cover a percentage of an employee’s average pay, some may consider new employment to supplement their income.
Ensure you discuss your condition and the job requirements with your medical provider and new employer. Keep in mind that failing to notify your insurer that you’re changing jobs can also be considered insurance fraud. If you plan to work multiple jobs, report all earnings to the provider.
Types of Work Allowed
There aren’t any restrictions on employment type for those receiving worker’s comp. Employees with work-related injuries might switch jobs with their employer or even begin working for a new company.
Seeking employment in a different field may also be permitted while collecting workers’ compensation benefits, especially if the new role is less labor intensive. A part-time job or light-duty work may also be an option. Some workers may also choose positions as independent contractors to allow them to work around medical needs.
Regardless of the job type or employer, the different positions should be less physically demanding and unlikely to worsen the injured employee’s condition. Otherwise, the workers’ comp insurance company may deny all future benefits. For this reason, it’s crucial to work closely with your insurance representative and medical provider before accepting a position.
Restrictions on Earnings
There aren’t any restrictions on earnings while you receive workers’ compensation benefits. Yet, it’s essential to remember that your workers’ comp benefits may be reduced based on your new income.
The insurance company considers all sources of employment when calculating benefits. The benefits available are usually based on an average of earnings over the last 52 weeks, including overtime and bonuses. The income earned from the other job goes against the wage loss benefits, usually decreasing the amount.
Additionally, some employers may question an employee’s need for workers’ compensation benefits if they take a new job with similar work duties.
Factors Affecting Eligibility to Work
Employment in two jobs may not make sense in all situations. The following eligibility factors may apply to an employee receiving workers’ compensation benefits.
Nature and Severity of Injury
The type and severity of injury can impact a person’s ability to work and the type of work they can secure. Severe injuries, such as a traumatic brain injury (TBI) or a permanent disability, may make changing jobs difficult. Minor injuries, such as a broken bone or a back injury, could allow a worker to seek a light-duty job with a new or current employer while still receiving benefits.
Medical Restrictions
Medical restrictions may impact an injured worker’s ability to seek another job while receiving workers’ comp. If the insurance company places restrictions on an employee that prevent them from working their primary job, those same restrictions apply to other jobs.
In cases where a part-time or light-duty job might exacerbate your injury or lengthen your recovery, it’s not recommended.
Before accepting or starting another job, always discuss your medical restrictions with your physician and the insurance company. It may also be worth discussing your new job prospects with a workers’ compensation attorney.
Job Requirements
Check that the new job’s requirements won’t interfere with your recovery. Be transparent about the new job and request a list of job duties. Discuss these with your medical provider to ensure they won’t cause further injuries. It’s also important to ensure you’ll have sufficient time in your schedule to maintain required physician appointments.
Potential Impact on Workers’ Compensation Benefits
While some employees on workers’ compensation benefits can seek additional employment, it’s important to understand the potential impacts.
Reporting Earnings
Workers must report all earnings to the insurance company if they receive workers’ comp benefits, whether full-time, part-time, or contractual. The insurance company calculates benefits based on what the job pays. Otherwise, injured employees can continue receiving benefits for the maximum duration set by their state.
Employees still unable to work may have extended payment options available through disability payment benefits. However, this requires a new claim.
Benefit Reduction
Additional employment, whether in a new position or with the same employer, could reduce the workers’ compensation benefits received. Calculating what the job pays compared to the benefits received can help determine whether a new job is worth it.
Additionally, laws require the injured worker to notify the provider once they’re fully recovered or no longer disabled, regardless of their current employer.
Potential for Claim Denial
Additional employment could void your workers’ compensation benefits depending on the new job and its pay. A workers’ comp claim can also be denied if the employee fails to report income or doesn’t notify the insurer of the second job. Working a second job while on workers’ compensation without provider approval could also lead to a loss of benefits.
Seeking Legal Guidance for Workers’ Compensation
Navigating a workers’ compensation claim can be confusing and overwhelming, especially when you have a second job or additional income. While it’s possible to continue collecting workers’ comp while taking on a new job, evaluating the potential impacts before doing so is important.
Whether you’re considering filing a workers’ comp claim or already receiving workers’ comp benefits and have questions about a second job, consider seeking legal guidance.
An experienced Chicago workers’ comp lawyer from our team can help you navigate your case. In addition to getting injured workers the benefits they need, legal representation can help speed up the process.
Rosenfeld Injury Lawyers is well-versed in various state workers’ compensation laws. Our team works hard to negotiate with the workers’ comp company in your best interest. Call us today at (888) 424-5757 for a free consultation or fill out our contact form.