Fired While on Workers’ Compensation in NC? Know Your Rights

Fired While on Workers’ Comp in NC

Losing your job is a stressful experience, but it becomes even more complicated if you are also receiving workers’ compensation benefits due to a workplace injury. In North Carolina, employees injured on the job are protected under the Workers’ Compensation Act, which provides a legal system to help ensure they receive medical care and wage replacement benefits while unable to work. However, being fired during this process introduces unique challenges, particularly when it comes to sustaining those benefits and navigating post-termination work opportunities.

Key Protections Under Workers’ Compensation

If you are terminated while receiving workers’ compensation benefits in North Carolina, your rights depend largely on the nature of the termination and how your injury affects your ability to work.

Workers’ compensation benefits are designed to assist injured employees until they can return to work or reach maximum medical improvement. These benefits generally cannot be stopped simply because you were fired unless your termination is due to specific misconduct unrelated to your injury.

Constructive Refusal to Accept Work

Under North Carolina law, an employee has a duty to accept suitable employment that is offered to them, even if it is different from their pre-injury job. However, there is a concept called “constructive refusal to accept work,” which can impact your rights to ongoing benefits. This occurs when an employee, through their actions or inactions, is deemed to have effectively refused available suitable employment.

For example, if your employer offers you a light-duty position within your medical restrictions and you refuse to take it without good cause, your refusal may be considered “constructive.” This could lead to a suspension or reduction of your benefits. Importantly, the burden is on the employer to prove that the job offered was suitable for your medical condition and physical restrictions.

If you were terminated because of something unrelated to your injury (such as company-wide layoffs) and you are still medically unable to perform any work, your benefits generally should continue. However, if you were terminated for misconduct, the employer may argue that your inability to earn wages is not due to your injury but rather your conduct. This could jeopardize your workers’ compensation benefits.

Proving You Cannot Find New Work

If you are fired and can no longer rely on a job with your employer, you may need to prove that your injury prevents you from obtaining new employment. This is often referred to as demonstrating “disability” under workers’ compensation law.

The burden of proof is on the injured worker to show:

  1. They are unable to work in any capacity due to their injury, or
  2. Despite reasonable efforts, they cannot find suitable employment because of their physical limitations and the local labor market conditions.

To meet this burden, you may need evidence such as:

  • Medical records and testimony from your treating physician regarding your physical restrictions.
  • Vocational expert testimony explaining how your limitations impact your ability to find work.
  • Documentation of job search efforts and rejections to show good faith attempts to secure employment.

Conclusion

Being fired while receiving workers’ compensation benefits in North Carolina raises complex legal issues, especially when it comes to proving ongoing disability and maintaining benefits. If you find yourself in this situation, consult an experienced NC workers’ compensation attorney who can help protect your rights and guide you through the process. They can ensure you meet your legal obligations while holding your employer and insurance carrier accountable for continuing your benefits.

Mr. Kornbluth is a North Carolina Board Certified Specialist in Employment Law and has been recognized by North Carolina Super Lawyers every year from 2014 through 2025. He is also honored as one of the Top 100 lawyers in North Carolina and Top 25 in Raleigh.