Terminated While On Workers' Comp

Texas Employment-at-Will Laws

Yes, you can be terminated while on workers' compensation in Texas, but the circumstances matter significantly. Texas follows the employment-at-will doctrine, meaning employers can typically terminate employees for any reason or no reason at all as long as it's not discriminatory or retaliatory. This broad employer discretion continues even when employees are receiving workers' compensation benefits.

However, termination while on workers' comp raises legal complexities and possible violations of anti-retaliation laws, making the timing and reasoning critical factors in determining whether the termination is lawful.

Prohibited Retaliatory Termination

Texas Labor Code Section 451.001 specifically prohibits retaliation against employees for filing workers' compensation claims or exercising their rights under workers' comp laws. Employers cannot fire, demote, or otherwise discriminate against workers simply because they:

• Filed a workers' compensation claim
• Testified in workers' comp proceedings
• Hired an attorney for their claim
• Exercised any rights under workers' compensation law

If termination occurs shortly after filing a claim or appears connected to workers' comp activities, it may constitute illegal retaliation, regardless of Texas's at-will employment laws.

Legitimate Reasons for Termination

Employers can legally terminate workers on compensation for legitimate business reasons unrelated to their injury or claim. Valid reasons include:

• Performance issues that existed before the injury
• Misconduct or policy violations
• Layoffs due to economic conditions or restructuring
• Position elimination for business reasons
• Attendance problems unrelated to the work injury

The key factor is whether the termination reason is genuinely independent of the workers' compensation claim and can be documented as such.

Timing and Documentation Concerns

Suspicious timing creates legal vulnerability for employers. Terminations occurring immediately after claim filing, during medical treatment, or shortly before return-to-work dates often trigger retaliation investigations. Courts examine the proximity in time between workers' comp activities and termination as evidence of potential retaliation.

Employers with proper documentation of performance issues, business needs, or policy violations before the injury have stronger legal positions. Conversely, sudden terminations without documented cause raise red flags for retaliatory intent.

Legal Remedies and Protection

Employees who believe they were terminated in retaliation for workers' compensation activities can file complaints with the Texas Workforce Commission or pursue civil lawsuits. Successful retaliation claims may result in reinstatement, back pay, attorney fees, and additional damages.

Wrongful termination cases in this context often settle before trial, as employers face significant legal exposure and bad faith claims that can increase damages substantially.

Protecting Your Rights

Document all interactions with supervisors regarding your injury and claim. Keep records of performance evaluations, disciplinary actions, and any communications about your workers' comp case. If terminated while on workers' comp, consult with an employment attorney immediately to evaluate whether retaliation occurred and determine your legal options.