Workers Compensation Insurance provides benefits when workers are injured on the job.
If the worker cannot return to work immediately, the coverage pays wage replacement benefits each week until the worker can return to their job. Many recipients do not receive enough money to cover their monthly expenses and take on an extra job. Are these workers at risk of losing the weekly benefits because of the new position?
Understand Your Rights
According to federal worker’s compensation laws, the previous employer’s insurer cannot cancel a recipient’s benefits just because the person changed jobs and didn’t stay with the employer providing the benefits.
If the person accepts a job where the employer keeps the worker on light duty, the monetary benefits are still paid. If the person takes a job where the salary is less than the amount the previous employer paid regularly, the worker’s compensation benefits cannot be stopped. If a beneficiary’s wage replacement payments are stopped for any of these reasons, the person needs to contact Workers Compensation Attorneys now.
Can the Worker’s Compensation Payment be Reduced?
Yes, the amount the person receives will be affected by a new or supplementary job if the wages are less than the individual received from the previous employer. The wage replacement benefits won’t stop, but the insurer could provide a partial payment instead of the full weekly amount.
The worker must report any additional income to the worker’s compensation insurer, or the individual is guilty of insurance fraud. If the earnings from the new job are the same or more than the person received through the previous company, the monetary benefits can be stopped.
Understanding Repercussions of Getting a Different Job
Many workers seek more employment or supplemental options to generate the same income as before the injuries. The extra money covers expenses that the worker’s compensation benefits don’t. If the position is part-time and light duty, the additional position won’t have major repercussions, and the worker won’t lose all the monetary benefits. With worker’s compensation coverage, the economic benefits range between 80 to 90% of the person’s regular wages.
The Impact on Your Recovery
Workers should never take on another job that derails recovery. A doctor must clear the person for light duty before returning to work anywhere. If the person doesn’t give their body enough time to heal from the injury, there is a risk of new injuries and possible disabilities.
Additionally, if the person’s job duties are not too difficult during the recovery stage, the insurer could stop the benefits because the worker can do the job even with the injuries. The sole purpose of getting worker’s compensation is that the worker cannot return to work because of the injuries. The work duties cannot be complex or require abilities that were restricted in the insurance claim.
The insurer will discuss the work duties with the new employer, and if the worker is or has been completed the duties outlined in the claim, the insurer can stop all benefits, including medical coverage. If the worker was receiving benefits previously and completing the duties, the insurer may demand repayment of a portion of the monetary benefits.
Recipients who are receiving worker’s compensation wage replacement could face reductions in weekly benefits based on how much a new employer pays each pay period. There are laws in place that prevent insurers from stopping the benefits, and workers must understand how the laws work.