Can I Quit My Job While on Workers’ Comp in Colorado?

Types of Workers’ Compensation Benefits

Workers’ comp claimants may be eligible for three types of benefits in Colorado. First, there are medical benefits. With these benefits, your employer must pay for all reasonable and necessary medical treatments to address your injury. Additionally, you may be entitled to receive reimbursement for the following costs:

• Travel, such as mileage and parking.
• Over-the-counter medication.
• Medical supplies, such as bandages.

Second, you can receive wage replacement benefits. Also called temporary partial or total disability benefits, these payments are intended to replace a portion of the wages you cannot earn due to medical restrictions.

These benefits are calculated based on your average weekly wage. Typically, you will receive two-thirds of your average weekly wage, up to a statutory maximum. In other words, if you are a high-earner, you might receive less than two-thirds of your average weekly wage. However, most average earners receive the full two-thirds of their weekly pay.

Colorado has a three-shift waiting period for these benefits. Specifically, you must miss three work shifts due to your doctor’s orders before you can start receiving wage replacement benefits.

Disability benefits are another option. They are also referred to as permanent total or partial disability benefits. These payments aim to compensate you for any permanent loss of function or disfigurement you suffered in your work-related accident.

You receive disability benefits when you reach maximum medical improvement. In other words, the insurer agrees with your doctor that additional treatment or therapy will not improve your condition.

Can I Quit My Job While on Workers’ Comp and Keep My Benefits?

Colorado is an at-will employment state. Both employers and employees have the freedom to terminate the employment relationship for any reason or no reason, with a few exceptions.

When you file a workers’ comp claim, your employer is free to terminate you, as long as their purpose is not to retaliate against you for filing the claim. For example, your employer could fire you if you break the company’s safety rules and are injured during it.

Likewise, you are also free to quit. When you quit, you will be entitled to keep your medical benefits, regardless of whether you work or where you work. Your employer’s insurer at the time of your accident is responsible for your benefits, even if you changed jobs before or after your claim.

For example, suppose you were exposed to a toxic substance at work, changed careers, and developed cancer from the toxic exposure while working for another company. Your first employer’s insurer is responsible for paying your medical benefits because your injury occurred during your employment there.

However, your temporary or permanent disability benefits may be jeopardized if you quit your job after filing a claim.

Quitting After Filing a Claim

Quitting raises three possible issues when it comes to disability benefits. First, you may lose your temporary disability benefits because they are based on your wage losses.

If you change jobs, you might not have any wage losses, depending on your new work tasks. For example, suppose you injured your back and were unable to lift. If your new job requires no lifting, you can work full-time and, thus, have no wage losses.

Second, if you aggravate your injury after changing jobs, it may not be clear which insurer is responsible for your claim. Specifically, your former employer’s insurer may terminate your benefits and force you to file a new claim. Then, your new employer’s insurer may deny your claim because the original injury occurred elsewhere.

Third, your benefits depend on your work restrictions or permanent disabilities. If you take on new work, you might disprove that your abilities were impaired by your injuries. As a result, the insurer may terminate your claim.

Quitting Before Filing a Claim

Quitting before filing a claim raises the same issues. Thus, you should expect an insurer to be much more skeptical about paying any wage replacement benefits if you quit before you file your claim. You may still receive medical benefits, but your workers’ comp attorney must prove that the injury occurred while working for your prior employer.

Contact a Skilled Workers’ Compensation Lawyer Today

The rules governing workers’ compensation are complicated and often fail to address a particular situation. Insurers may exploit these gaps to deny claims when you change jobs.

A workers’ comp attorney from Bachus & Schanker can help you understand your risks of quitting your job while receiving benefits.

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