Can You Be Fired or Laid Off While on L&I?

You suffered a work-related injury and filed a workers’ compensation claim with the Department of Labor and Industries (L&I). But while you were recovering from your injury, your company laid you off or, worse, fired you. Now you’re wondering if your employer had the right to do that and what will happen to your claim and benefits.

In most cases, it is legal for your employer to fire or lay you off while you’re receiving workers’ compensation benefits. However, that doesn’t mean you’ll lose your benefits or your workers’ compensation case. Here’s what you need to know.

Can You Be Laid Off While on L&I?

The short answer is, yes, you can be laid off while on L&I. However, the layoff must be legal and valid. You can’t be in a protected group, the layoff doesn’t violate a union agreement, and you aren’t laid off as retaliation for filing a workers’ compensation claim.

Can You Be Fired While on L&I?

The short answer is also yes, but the longer answer is a little more complex.

Washington is an employment-at-will state, so your employer has the right to fire you at any time. They don’t have to give you advance notice you’re being fired, and they don’t have to give a reason for firing you. So, yes, you can be fired while on L&I as long as your termination isn’t related to your injury or retaliation for filing your claim.

However, there is one circumstance related to your workers’ compensation claim when you can be fired. That’s when your doctor clears you to return to light-duty work, but you refuse to take that role without citing a medical reason for your refusal.

Can I File a New L&I Claim After I’m Fired or Laid Off?

Generally speaking, yes, you can file a new workers’ compensation claim with L&I provided your injury happened on the job and you file within the correct time frame: one year from the date of injury or two years from the date you were diagnosed with an occupational disease.

Missing this cutoff or any other deadline could mean your L&I claim is denied.

What Happens to My Benefits if I’m Fired or Laid Off While on L&I?

Your employment status isn’t directly tied to your workers’ comp claim, meaning you often still have the right to collect benefits even if you’re fired or laid off while on L&I. Until a doctor clears you to return to work, you generally have the right to collect:

• Time loss benefits (wage replacement)
• Medical coverage and care
• Permanent partial disability

This also applies to people who have an open but undecided claim with L&I. However, you generally can’t collect workers’ compensation and unemployment benefits at the same time, so receiving one often means you give up your right to the other one.

What Your Employer Can’t Do

You have the right to file a workers’ compensation claim when you’re injured on the job, and your employer can’t retaliate against you for:

• Filing a claim
• Stating that you plan on filing a claim
• Collecting workers’ compensation benefits

Not only can your employer not fire you or lay you off for filing a workers’ compensation claim, they also can’t:

• Suspend or demote you
• Deny you a promotion
• Reduce your hours or alter your work schedule (if you’re in a light-duty role)
• Reduce your pay rate
• Threaten your immigration status or your family’s immigration status
• Subject you to disciplinary measures, like verbal and written warnings

Get the Benefits You’re Entitled to

When you’re injured on the job, workers’ compensation provides the income and support you need while you recover. No matter your employment status, you have a right to that compensation and your employer has a legal obligation to pay for your claim, even after they’ve fired or laid you off.

In Washington, your employer can legally fire or lay you off while you have an L&I claim, but they cannot do it because you filed for workers’ compensation or because of your protected status. Losing your job does not automatically end your L&I claim or benefits. As long as your injury is accepted and your doctor continues to certify you off work or on restrictions, you may still receive wage‑loss, medical coverage, and permanent partial disability benefits. 

If you suspect you’ve been fired or laid off because you filed a workers’ compensation claim or are receiving benefits, we can help. The experienced legal team at Walthew Law Firm knows workers’ compensation law and how to navigate the system. For over 90 years, we’ve helped injured workers recover the workers’ compensation benefits they’re entitled to. Contact us today for a free, no-obligation case consultation and learn how we can help you. There’s no fee unless we win.