An important warning about quitting your job in Michigan while on workers’ comp and why settlement should be explored first.
Getting hurt at work can turn your life upside down. This is especially true if a person has permanent restrictions and cannot return to their job. It is not easy supporting a family on 80% pay and giving up the job seems like a reasonable solution. Many of our clients transition to new careers after a workplace accident. A question we often get from clients is can you quit your job while on workers’ comp in Michigan? Yes, but you could be forfeiting significant wage loss benefits. Here is why a settlement should be explored before taking any drastic steps.
Workers’ comp protects employees hurt on-the-job. It pays lost wages equal to 80% of a person’s after-tax average weekly wage. Overtime, discontinued fringe benefits, and even second jobs that cannot be done anymore should be factored into this calculation. Money paid is income tax free and continues for the entire period of disability.
Though you can quit your job while on workers’ comp in Michigan, it is important to know that employers have the right to offer “light duty” instead of paying lost wages. The job must be within an employee’s restrictions and be a reasonable distance from their home. It cannot be a danger to an employee’s health and safety. However, there is no requirement that it be within a person’s skills and qualifications so the job might be entry level. Failure to accept light duty will usually result in termination of lost wages. It is a much better idea to have a doctor take you off work.
Can you quit your job while on workers’ comp in Michigan?
Employees on workers’ comp in Michigan are permitted to quit their jobs at any time. However, this might operate as a forfeiture of wage loss benefits if light duty work is available. Medical care should continue to be paid regardless. It is important to explore settlement options before making changes to employment status.
We see employers play games with people on workers’ comp. They are told to report to work and given a demeaning job like watching an empty parking lot or acting as a store greeter. The goal is to have a person quit so that additional wage loss benefits do not have to be paid. So, yes you can quit your job while on workers’ comp in Michigan but it could result in severe financial consequences.
Even if a light duty job has not been offered, quitting can be used as a defense to future wage loss benefits. The employer will argue a light duty job would have been offered but the employee voluntarily removed himself or herself from the workplace.
A settlement is a good option
Settlement is a good option for people who want to quit their job. It allows them to trade future wage loss benefits for a lump sum cash payment. This money can be used for any purpose including vocational rehabilitation, job search efforts, starting a business, paying off debt, or retirement. The amount of money paid for settlement is going to depend upon how much the insurance company thinks it will have to pay in future wage loss benefits.
Does quitting your job affect your settlement?
If you quit your job while on workers’ comp in Michigan it could significantly reduce the settlement payout. Most people who settle their claims resign their employment anyways. Timing is everything so talk with an experienced attorney to get ahead of this issue.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and are wondering if you can quit your job while on workers’ comp or have any other questions about your claim, call us now, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.
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