Yes, you can be fired while on workers’ comp in Michigan. Our state is an “at-will” employment state, meaning your employer can legally terminate you for reasons unrelated to your injury. However, the Workers’ Disability Compensation Act makes it illegal to terminate you because you filed a claim — and gives you grounds for a separate wrongful termination lawsuit.
Here’s what you need to know if you’re fired while on workers’ comp in Michigan:
- Your benefits continue. Getting terminated does not automatically stop your medical or wage-loss benefits. The insurer must keep paying as long as you remain disabled and unable to work because of the injury.
- Retaliation is illegal. Your employer cannot terminate, demote, or discriminate against you for reporting an injury or filing a claim. Watch for employers who invent a pretext reason to mask retaliation.
- FMLA may protect your job. If you and your employer qualify, the federal Family and Medical Leave Act guarantees up to 12 weeks of unpaid, job-protected leave — separate from anything workplace injury benefits provides.
- Fringe benefits can add value to your claim. If you’re terminated, the value of lost fringe benefits — health insurance, pension contributions, even vacation pay — can be added to your weekly comp rate, up to the state maximum.
- Light-duty refusal has consequences. If you lose light-duty work through your own fault, you may not be able to collect future lost wages.
- Accommodation matters. If you’ve reached MMI and still have restrictions, your employer must attempt reasonable accommodation before terminating — refusing to try can be illegal disability discrimination.
The workplace injury compensation system is not perfect, and it can be downright unfair. It is a compromise of employee and employer interests. Employees hurt on-the-job are guaranteed medical treatment, lost wages, and vocational rehabilitation if needed. In exchange, employers receive immunity from civil lawsuits and do not have to pay additional damages for their negligence.
Can I be fired while on workers’ comp in Michigan?
In Michigan, you can be fired while on workers’ comp as there is nothing in the law that protects your employment, however, your employer cannot terminate you in retaliation for making workplace injury claims. This is against the law, and you can get damages beyond workplace injury benefits.
Many employers will keep a job open for a period of several months but will eventually need to fill the position. This is common if work restrictions prevent an employee from returning for an extended period. There is nothing in the law that guarantees future employment. However, employers must continue paying wage loss benefits while disability is ongoing.
This can be triggered by simply asking for medical or wage loss under your workplace injury claim. Watch out for employers who make up phony reasons that are used as a pretext to stop employment. It is possible to sue for wrongful termination under these circumstances.
Your employer may also have other legal obligations under the Family and Medical Leave Act (FMLA). This is a federal law that protects some employees with health problems. It provides up to 12 weeks of unpaid leave. Terminating someone in violation of FMLA could lead to a separate employment lawsuit with additional damages.
Can you collect workers’ comp after being fired in Michigan?
Yes, you can collect workers’ comp after being fired in Michigan. Employees are entitled to workplace injury benefits regardless of their employment status. Benefits continue even after getting let go. Intentional and willful misconduct is a defense. Intoxication can be used to deny payments. Termination from reasonable employment based upon employee fault can also be used to dispute.
It is also possible for a disabled employee to be covered from being fired while on workers’ comp in Michigan under an employment or union contract. This may provide additional rights that are not given under workplace injury law. Filing a union grievance can help protect employment status. It is important to speak with an experienced attorney when faced with this situation.
What happens to my benefits if I’m fired while on workers’ comp in Michigan?
Employees who are fired while on workers’ comp in Michigan are entitled to have the value of discontinued fringe benefits included in their weekly compensation rate. Items like health and accident insurance, housing/food/travel allowance, pension contributions, and even sometimes vacation pay can be factored into this calculation. This will add significant value to a workplace injury claim, but it cannot make weekly benefits exceed two-thirds of the state average weekly wage.
Can you collect workers’ comp after being fired based upon misconduct?
Intentional and willful misconduct has been distinguished from negligent and even grossly negligent acts. The State Supreme Court has said the Worker’s Disability Compensation Act (WDCA) bars an employee from collecting benefits for misconduct that is both (1) intentional, i.e., deliberate or nonaccidental, and (2) willful, i.e., obstinately, or perversely opposed to the employer’s will. (See MCL 418.305) An employer’s work rule must be clearly established and consistently enforced in order for the employee to understand the mandatory nature of the rule and for its violation to constitute intentional and willful misconduct. This is a difficult burden for any employer or insurance company.
Can you collect workplace injury benefits after being terminated based upon drugs or alcohol?
Intoxication at the time of the accident can be used to dispute work injury benefits. An employee who simply fails a drug test will not automatically be disqualified for payments. Employees who are terminated for failing a drug test, when there is a strictly enforced policy, can find their claim disputed.
Can I be terminated while on light duty?
Yes, you can be fired while on workers’ comp light duty in Michigan, but with limits. Light duty is a modified role, paid as “reasonable employment” instead of lost-wage benefits, for employees working within medical restrictions. If you lose that light-duty job through your own fault, you may not be able to collect future lost wages. If you’re terminated from light duty specifically for intentional and willful misconduct, your wage-loss benefits — but not your medical benefits — could be affected as well.
What should I do if I think I was fired in retaliation to filing a workers’ comp claim in Michigan?
If you believe you were fired for filing a workers’ comp claim, or your employer gave you a reason that doesn’t add up, don’t wait to find out your rights.
- Document everything. Save termination paperwork, emails, and texts, and write down the stated reason for termination.
- Keep a timeline. Note the dates you reported your injury, filed your claim, requested accommodation, and were terminated — pretext often shows up in how close together these dates are.
- Don’t stop your medical treatment. Your benefits depend on your medical status, not your employment status.
- Talk to an attorney before signing anything, especially a severance agreement releasing claims against your employer.
- File a claim if advised, separate from your ongoing work injury benefits.
Watch for these signs of illegal retaliation:
- Sudden timing. You’re terminated immediately or shortly after reporting your injury or filing a claim.
- Visible frustration over cost or time off. Your employer complains about medical bills or the time you’ve missed from work before letting you go.
- Refused accommodation. You’re let go after your employer refuses to provide a reasonable, doctor-ordered accommodation they were capable of offering.
An experienced Michigan workers’ comp lawyer can evaluate whether your firing was pretextual and whether you have grounds for a separate wrongful termination claim.
Can I be fired while on workers’ comp in Michigan for not being accommodated?
No. Once you reach Maximum Medical Improvement (MMI) — the point where your treating doctor says your condition won’t improve further, even if you still have permanent restrictions — your employer is required to make reasonable efforts to accommodate those restrictions. Being fired while on workers’ comp in Michigan because your employer won’t accommodate you, or because your injury created an inconvenience, can be illegal disability discrimination under state law.
- Reasonable accommodation requirement: Michigan’s Persons with Disabilities Civil Rights Act (PWDCRA) requires covered employers to make reasonable adjustments — modified duties, equipment, schedule changes — so an injured employee can keep working within their restrictions.
- Maximum Medical Improvement (MMI): Reaching MMI doesn’t mean your case is over or your benefits stop. It means your recovery has plateaued. If you still can’t return to full duty at that point, your employer must attempt to accommodate your restrictions before termination becomes legally defensible.
- When termination becomes lawful: If your employer has genuinely exhausted reasonable accommodation options — no modified role exists, the position can’t be held open indefinitely, or the physical demands simply can’t be adjusted — they may be permitted to let you go. Importantly, this does not end your work injury benefits. You’re still entitled to wage-loss and medical benefits until you’re released to full duty or reach MMI.
- Alternate position instead of termination: Some employers offer a different or lighter-duty role rather than terminating an injured employee outright. They’re not legally required to create or offer this, but if they do, it’s worth having an attorney review the terms — especially if the new role pays less or is in a different department.
What are lawful reasons an employer can terminate you while you’re injured?
Our state’s at-will rule means your employer doesn’t need a reason unrelated to your injury to let you go — but the reason has to actually be unrelated. Lawful grounds typically include:
- Documented poor performance or attendance problems that existed before your injury
- Company-wide layoffs or restructuring unrelated to your claim
- Inability to perform the essential functions of the job after your employer has genuinely exhausted reasonable accommodation options
- Willful misconduct, as defined under MCL 418.305 (see the misconduct section above)
The key point about collecting Michigan workers’ comp benefits after being fired
The key point to remember is that you can collect workers’ comp after being fired in Michigan but only if there was no intentional and willful misconduct that resulted in the employee getting hurt. Intoxication must not have played a role in the workplace accident. Finally, an employee who loses reasonable employment because of their own fault might not qualify for lost wages. We recommend speaking with an experienced lawyer should an employee find their workplace injury benefits disputed.
Were you fired while while on workers’ comp in Michigan and have questions? Call our attorneys now for a free consultation!
If you have questions about being fired while on workers’ comp in Michigan, call now at (855) 221-2667 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We’re here to help.
For more than 40 years, our lawyers have been helping people like you who have suffered from on-the-job injuries statewide. We understand the physical, emotional, and psychological hardships you are experiencing from your accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.
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.
Remember, every work injury claim is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.
Our law firm has consistently secured the largest settlements in the state and is the best choice for your case. We never charge a fee to evaluate a potential case. Our law firm has represented injured and disabled employees exclusively for more than 40 years. Call (855) 221-2667 for a free consultation today.
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