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Can I Get a New Job While on Workers’ Comp?

If you were injured on the job in California, navigating your medical recovery and your career can be challenging. The question of whether you can accept a new job while receiving Workers’ Compensation benefits is common, and it’s one that requires a careful, informed approach under California law.

The simple answer is Yes, you can.

However, your actions must comply with specific rules to protect your benefits, particularly your Temporary Disability payments and your medical coverage.

Why Consider Changing Jobs?

An injury can force a change in career direction, and in California, injured workers often seek new employment due to:

  • Physical Restrictions (Light Duty): Your treating physician (Primary Treating Physician or PTP) provides specific work restrictions. If your former employer cannot accommodate these restrictions with suitable Modified or Alternative Work (which must meet certain legal requirements), you are free to seek a job elsewhere that fits your limits.
  • Job Opportunities/Pay: You may find a new position that is safer, offers better long-term prospects, or is simply a better fit for your post-injury life.
  • Supplemental Job Displacement Benefit (SJDB): If your injury prevents you from returning to your old job and your employer does not offer eligible modified/alternative work, you may be entitled to an SJDB voucher for retraining, which encourages finding a new career path.

Impact of a New Job on Your CA Temporary Disability Benefits

The type of wage-replacement benefit you are receiving—known as Temporary Disability (TD) in California—will be affected by your new income.

  • Temporary Total Disability (TTD) $\rightarrow$ TPD: If your doctor has kept you completely off work (TTD), you must be released by your doctor for work with restrictions before you accept a new job.
  • If the New Job Pays Less: You may still be eligible for Temporary Partial Disability (TPD) benefits. California TPD benefits are calculated to help you make up for lost income. They are typically paid at two-thirds ($\frac{2}{3}$) of the difference between your pre-injury wages and your new, lower earnings.
  • If the New Job Pays the Same or More: If the new job pays the same or a higher wage than your pre-injury average weekly wage, your Temporary Disability (TD) wage benefits will stop. The goal of TD is to replace lost wages, and if you are no longer losing wages, the benefit ends.
  • Medical and Permanent Disability Benefits: Accepting a new job does not cancel your right to have medical treatment covered for your original work injury, nor does it affect your eventual Permanent Disability (PD) benefits (compensation for lasting impairment once you reach Maximum Medical Improvement/MMI).

What Do I Stand to Lose? The Downside in California

The biggest risk for any injured worker in California is being accused of workers’ compensation fraud. Fraudulent activity is a felony in California and can lead to termination of benefits, fines, and even imprisonment.

Violating Medical Restrictions

If the insurance company (claims administrator) determines your new job’s physical duties exceed the restrictions set by your PTP, they can argue you are no longer disabled. This can lead to the termination of your Temporary Disability benefits and severely damage the credibility of your entire claim.

Failing to Report Income

This is the core of fraud. You must immediately and accurately report all new work, wages, hours, and job changes to the claims administrator. Collecting TTD/TPD benefits while failing to report earnings is an explicit act of workers’ compensation fraud.

Jeopardizing a Settlement

In some complex cases, an attorney may advise waiting to accept a new job until your claim is resolved, as your employment status could factor into negotiations for your final settlement.

Other Considerations

  • Doctor’s Clearance is Paramount: Never accept a job that violates the physical restrictions set by your Primary Treating Physician (PTP). Review the new job description with your doctor first.
  • Transparency is Mandatory: Be proactive. Notify your claims administrator and your attorney (if you have one) in writing the moment you accept a new job, including the start date and pay rate.
  • Quitting Your Old Job: In California, quitting the job where you were injured does not automatically end your rights to medical treatment or Permanent Disability benefits. However, it can complicate your Temporary Disability benefits if you were released to work with restrictions that the old employer could have accommodated.
  • Supplemental Job Displacement Benefit (SJDB): If you are offered qualifying modified or alternative work by your employer and you reject it, you will likely lose your eligibility for the SJDB voucher.

Remember: This is just the beginning of your journey. Consulting with multiple attorneys and finding one who resonates with your needs and personality is crucial. To find the right one, we can help with a list of the top 10 workers’ compensation attorneys in Los Angeles.

If you have any questions or concerns regarding a work injury, unsafe working conditions or unfair treatment, be sure to contact us for a free consultation/case review.

To learn more or share your experiences call the Workers’ Compensation Group of Los Angeles at (877) 292-4888, email: info@workercompla.com or schedule a consultation online.

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Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Consult an attorney for legal guidance specific to your situation.