Resigning vs. Staying: How Job Status Can Affect Your Workers’ Comp Settlement
After a workplace injury, it may be tempting to quit, especially if your job has become painful, stressful, or impossible to perform. But before you resign, you should understand that your employment status can affect the value and leverage of your Colorado workers’ compensation claim.
Leaving your job doesn’t automatically end your right to workers’ compensation benefits. But it can give an insurance company an opening to argue that your lost income resulted from your decision to quit, rather than from your injury. The best choice depends on your medical restrictions, available work, future treatment needs, and the details of your employment situation.
Staying on the Job
Staying employed can preserve income and keep important options open, particularly when your employer offers work that fits your doctor’s restrictions.
For example, if a construction worker has a lifting restriction and the employer offers legitimate light-duty work, continuing in that role may help protect wage benefits while the worker recovers. Quitting before exploring suitable modified duty could allow the insurer to claim that wage loss is voluntary.
Injured employees don’t have to accept work that is unsafe or goes beyond medical restrictions. If an assignment aggravates an injury or conflicts with the authorized physician’s orders, document the problem and seek advice before acting.
The Risks of Resigning
Resignation can make settlement negotiations more difficult when the insurer argues there was work available within the employee’s restrictions. The insurer may claim that the worker voluntarily left the labor market and is therefore not entitled to wage-loss benefits.
A resignation may be particularly risky when:
- Modified-duty work is available.
- You have not yet reached maximum medical improvement.
- You leave without documenting that the job conflicts with medical restrictions.
- You’re asked to sign a severance, release, or settlement agreement.
Employment documents can carry major consequences. A resignation letter, severance package, or “full and final” settlement may affect future wage benefits, medical treatment, and potential claims against an employer.
When Leaving May Make Sense
Sometimes leaving is the right move. An employee may be unable to perform the job permanently, have no suitable work available, or face working conditions that interfere with recovery. If the employment relationship is no longer realistic, a negotiated settlement may offer a path forward.
Protect Your Claim Before You Decide
Before quitting or signing anything, take these steps:
- Keep copies of medical restrictions, work-status reports, and communications with your employer.
- Ask in writing for details about any modified-duty position, including its duties, hours, and pay.
- Don’t perform tasks that exceed your medical restrictions.
- Review severance and settlement paperwork carefully.
- Speak with experienced Colorado workers’ compensation attorneys before making a decision that could affect your benefits.
Speak With Our Colorado Workers’ Compensation Attorneys
Whether you’re considering resignation, dealing with a modified duty offer, or reviewing a settlement proposal, your job status may play a major role in your workers’ compensation case.
We help injured Colorado workers understand their options and protect their rights. Before you quit, accept a settlement, or sign an employment agreement, contact our Colorado workers’ compensation attorneys who can evaluate how the decision may affect your claim.