Can You Be Terminated on Work Comp?
September 12, 2024
The short answer is yes, but it's a bit more complicated than that. The State of Florida operates as an “at-will” employment state, meaning employers can terminate employees for any reason, as long as they don't break the law. So, if you're receiving workers' comp and are worried about job security, it's crucial to understand your rights.
Generally speaking, your worker’s compensation benefits will start from the 8th day of disability, and if the injury is critical, you may receive 80% of your regular wages for up to six months.
When it comes to retaliating against employees for filing a workers' compensation claim, there are important legal protections in place to prevent unfair dismissal of employees in the Sunshine State. Keeping detailed records, including copies of emails and forms filled, can be invaluable if you find yourself terminated after filing a legitimate worker’s compensation claim.
Nonetheless, while employers cannot legally fire you solely for filing a claim, they are not required to hold your job open indefinitely. On a positive note, even if you are fired, your workers' compensation benefits should continue as long as the injury occurred during your employment. Understanding your protections can help you navigate your rights and ensure you receive the benefits you deserve.
Florida’s At-Will Employment Doctrine
Under the state’s at-will employment doctrine, your employer can fire you at any time as termination for cause based on reasons such as poor job reviews with no positive indication of job performance improvement. In addition, financial setbacks that require staff reductions or restructuring of duties provide legitimate reason for firing an employee. Human employees can also be replaced with robotic or high-technology systems.
Termination for cause does not provide a sufficient reason for an employer to deny you lost wage benefits through worker’s compensation coverage. If you qualify for work comp benefits due to a work-related injury or illness, those benefits will continue after you are dismissed. You can continue treatments with your authorized medical providers for injuries and receive payments for loss wages until you reach maximum medical improvement for your injury type.
Any employee who intentionally caused their injuries cannot receive worker’s compensation benefits. Similarly, if they were intoxicated or under the influence of drugs at the time of the injury, or failed to follow safety protocols, they will be ineligible for work comp benefits. There is a statute of limitations for filing a claim that can be extended for employees who were misled about their benefits, mentally incompetent, or minors.
NOTE: If you are fired for gross misconduct, it can disqualify you for worker’s compensation benefits. However, proving gross misconduct is difficult and requires specific evidence of conflict of interests with the employer.
Worker’s Compensation System Guide
Every state has its own laws for how employees must be covered and classified for rating premiums. Florida is no exception. Employer coverage requirements are based on the type of industry, number of employees and entity organization. To determine work comp for a specific employer, the following information is provided by the Bureau of Compliance, including:
- Construction Employers – Construction industry employers, irrespective of the number of employees, must carry workers' compensation coverage. This requirement extends to businesses with at least one employee, including corporate officers or a Limited Liability Company (LLC).
- 1099 Contractors – Most 1099 contractors in Florida do not need to secure workers' compensation policies. But, there is a significant exception for those working in construction-related fields. Such employers must obtain workers' compensation insurance if they employ even one person.
- Non-Construction Employers – Employers with at least four employees, including business owners who are corporate officers or LLC members, must have workers' compensation coverage. Non-construction industry sole proprietors or partners do not have to be considered employees.
- Sole Proprietors – Generally, sole proprietors or partners are not considered employees and are automatically excluded from mandatory coverage. However, they can opt-in for worker’s compensation coverage by filing form DWC 251 (minimum payroll of $52,200).
- Executive Officers – When included in Worker’s Compensation insurance coverage, executive officers of a company must use a minimum payroll of $62,400 and a maximum of $187,200 for premium rating. This may include coverage for medical expenses, lost wages, and rehabilitation services.
- Agricultural Employers – Agricultural employers who meet specific criteria are subject to certain employment regulations. If you have at least six regular employees or 12 seasonal employees who work more than 30 days in a season or over 45 days in a calendar year
- Out-of-State Employers – Out-of-state employers working in Florida must inform their insurance carrier about their activities. If they lack insurance, they must secure a Florida work comp insurance policy from an approved carrier that complies with state law and the Florida Insurance Code.
The cost of worker’s compensation is primarily determined by the level of risk associated with each job and the business's history with claims. But, ensuring your business complies with state insurance requirements is crucial for operational efficiency and legal compliance. By understanding the nuances of the Florida’s worker’s compensation regulations, businesses can better manage their unique risks and properly protect their employees.
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Navigating the waters of workers' compensation insurance can be complex with Florida’s state-specific regulations. The rules and requirements for coverage and classification of employees are unique, making it essential for businesses to stay well informed. For detailed information, consult with an independent insurance agent at Nsurance Nation who can provide tailored recommendations based on your business type.
