Can I Be Fired While on Workers’ Comp in California? (2026 Legal Guide)

Every year, hundreds of thousands of California workers get injured on the job. In 2023 alone, 680,152 workers’ compensation claims were filed across the state, with 363,900 private industry nonfatal injury and illness cases reported. Behind each of those numbers is a real person asking one terrifying question: Can my employer fire me for filing a claim?

If you’re reading this, you’re probably asking that same question right now. Maybe you filed your claim last week. Maybe your boss has been acting differently since your injury. Maybe you just received a termination letter while you’re still recovering.

In my 20+ years practicing workers’ compensation law in California, I’ve seen employers try every tactic imaginable to push injured workers out the door. Some are blatant. Most are subtle. And too many workers don’t realize they have powerful legal protections until it’s too late.

This guide breaks down exactly what California law says about firing employees on workers’ comp, the major legal changes from 2024 and 2026 that strengthen your rights, and what you should do if you suspect retaliation.

The Short Answer: Your Employer Cannot Fire You for Filing a Workers’ Comp Claim

Let me be direct: it is illegal for your employer to fire you, threaten you, or retaliate against you in any way because you filed a workers’ compensation claim in California.

This protection comes primarily from California Labor Code Section 132a, which has been on the books for decades. It’s one of the strongest anti-retaliation statutes in the country.

However, there’s an important caveat. California is an at-will employment state under Labor Code Section 2922. This means your employer can generally terminate you for any lawful reason, or even no reason at all, as long as the reason isn’t illegal.

The key word there is “illegal.” Firing someone because they exercised their right to file a workers’ comp claim is illegal. Full stop. And recent legislation has made it significantly easier for workers to prove retaliation when it happens.

What this means in practice is that your employer can fire you while you happen to be on workers’ comp, but they cannot fire you because you’re on workers’ comp. The distinction matters enormously, and it’s where most of the legal battles are fought.

What California Labor Code Section 132a Actually Protects

Section 132a is the cornerstone of workers’ compensation retaliation protection in California. Understanding exactly what it covers gives you a clearer picture of your rights.

The statute declares it a policy of this state that no employee should be discharged, threatened with discharge, or otherwise discriminated against because they:

• Filed or made known their intention to file a workers’ compensation claim
• Received a workers’ compensation award or settlement
• Testified or planned to testify in another employee’s workers’ comp case

Notice how broad that language is. It doesn’t just protect you from being fired. It protects you from any form of discrimination, including demotion, reduction in hours, transfer to a less desirable position, harassment, or being passed over for promotion.

Criminal Penalties for Employers

What many employers don’t realize, and what many employees don’t know, is that violating Section 132a is a misdemeanor. An employer who fires you in retaliation for filing a workers’ comp claim can face criminal prosecution. While criminal charges are rare, the possibility underscores how seriously California takes this protection.

Civil Remedies Available to You

The civil remedies under 132a are substantial. If you prove retaliation, you may be entitled to:

• Increased compensation up to $10,000 — This is a penalty paid directly to you on top of any other workers’ comp benefits
• Reinstatement to your former position — Your employer must give you your job back
• Reimbursement of lost wages and benefits — Back pay for every dollar you lost because of the illegal termination
• Reasonable attorney’s fees and costs — Your employer pays your legal bills

In my experience representing injured workers, the combination of these remedies can be significant. The $10,000 penalty alone is on top of back wages, which can add up quickly when a case takes months to resolve.

The Filing Deadline You Cannot Miss

There is a critical deadline: you must file your 132a claim with the Workers’ Compensation Appeals Board (WCAB) within one year of the retaliatory act. Miss that deadline, and you lose this avenue entirely. This is one of the most common and devastating mistakes I see workers make.

SB 497: The 90-Day Rebuttable Presumption That Changed Everything (2024)

On January 1, 2024, Senate Bill 497 — the Equal Pay and Anti-Retaliation Protection Act — took effect. In my two decades of practice, I consider this one of the most significant pro-worker legislative changes in California employment law.

Here’s why: before SB 497, if your employer fired you after you filed a workers’ comp claim, you bore the burden of proving the termination was retaliatory. That’s often extremely difficult. Employers rarely send an email saying “fire this person because they filed a claim.” Retaliation is usually disguised behind pretextual reasons.

SB 497 flipped the script.

Under the new law, if your employer takes any adverse action against you within 90 days of you engaging in protected activity (like filing a workers’ comp claim), there is a rebuttable presumption that the action was retaliatory.

What does “rebuttable presumption” mean in plain English? It means the law assumes your employer retaliated against you, and your employer must prove otherwise. The burden of proof shifts from you to them. They have to demonstrate, with clear evidence, that the termination had absolutely nothing to do with your claim.

The $10,000 Per-Violation Civil Penalty

SB 497 also added a $10,000 civil penalty per employee per violation. This is separate from and in addition to the $10,000 penalty available under Labor Code 132a. For employers who retaliate against multiple workers, or who commit multiple retaliatory acts against a single worker, the penalties can stack up rapidly.

The practical impact of this law has been enormous. In my practice, I’ve seen a noticeable shift in employer behavior since SB 497 took effect. Companies with competent legal counsel are now far more cautious about terminating employees within that 90-day window. Those that don’t exercise caution find themselves in a significantly weaker legal position.

SB 294: The Workplace Know Your Rights Act (Effective February 1, 2026)

As of February 1, 2026, California employers face an additional obligation under Senate Bill 294, the Workplace Know Your Rights Act.

This law requires employers to provide written notice to employees informing them of their anti-retaliation rights. The notice must explain that employees are protected from retaliation for filing workers’ compensation claims and exercising other workplace rights.

If your employer has not provided you with this written notice, that fact can be used as evidence in a retaliation case. It suggests the employer either doesn’t take anti-retaliation protections seriously or is deliberately keeping workers in the dark about their rights.

When Your Employer CAN Legally Fire You While on Workers’ Comp

I want to be straightforward with you: not every termination that happens during a workers’ comp claim is illegal. There are legitimate, lawful reasons an employer can let you go even while you’re receiving benefits. Understanding these situations helps you evaluate your own case realistically.

Company-Wide Layoffs or Restructuring

If your employer conducts a genuine, company-wide layoff that eliminates your position along with many others, the termination may be lawful. The key question is whether the layoff is legitimate and non-discriminatory. If 50 people were laid off and you happened to be one of them, that’s very different from being the only person “laid off” right after filing a claim.

I always tell clients to look at the numbers. Were other employees in your department also let go? Was there a documented business reason for the restructuring? Did the company follow a consistent selection process?

Documented Performance Issues That Pre-Date Your Injury

If your employer has a documented record of performance issues that existed before your injury, those records may support a lawful termination. The critical factor is timing and documentation. Performance problems that were never mentioned until after you filed a claim are a major red flag for retaliation.

Genuine Misconduct or Policy Violations

An employee who commits serious misconduct, such as theft, violence, harassment, or safety violations, can be lawfully terminated regardless of their workers’ comp status. However, the misconduct must be genuine and well-documented, not manufactured as a pretext to get rid of an injured worker.

Position Elimination

Sometimes a specific position is genuinely eliminated due to business changes, technological advances, or reorganization. If your exact role no longer exists and the employer can prove it, termination may be lawful. But again, the timing matters. A position that conveniently gets “eliminated” two weeks after you file a claim deserves scrutiny.

7 Warning Signs Your Termination Was Illegal Retaliation

After handling hundreds of retaliation cases, I’ve identified patterns that show up again and again. If you recognize several of these warning signs in your situation, there’s a strong chance your termination was unlawful.

1. You Were Fired Within 90 Days of Filing Your Claim

Thanks to SB 497, termination within 90 days of filing a workers’ comp claim creates a legal presumption of retaliation. The closer the termination is to the filing date, the stronger your case. I’ve seen employers fire workers the same week they file, apparently unaware of or unconcerned about the legal consequences. Under current law, that timing alone shifts the burden to them.

2. Sudden Negative Performance Reviews

If you had consistently positive or neutral performance reviews before your injury, and suddenly started receiving negative evaluations after filing your claim, that’s a classic retaliation pattern. Employers use manufactured poor reviews to create a paper trail that justifies a termination they’ve already decided to make.

3. Increased Write-Ups After Your Injury

Similar to negative reviews, a sudden increase in disciplinary write-ups after you file a claim is suspicious. I look at the employee’s entire work history. If they went years without a single write-up and then received three in two months after filing, the inference of retaliation is strong.

4. Isolation or Reduced Responsibilities

Some employers don’t fire injured workers outright. Instead, they make the job so uncomfortable that the worker quits. This is called constructive discharge, and it’s just as illegal as direct termination. Signs include being moved to an isolated workspace, having your responsibilities taken away, being excluded from meetings, or being cut off from colleagues.

5. Your Employer Refuses to Accommodate Work Restrictions

When your doctor provides work restrictions (light duty, reduced hours, no heavy lifting), your employer has obligations under multiple laws to attempt reasonable accommodations. An employer who flatly refuses to accommodate any restrictions, especially when accommodations are clearly feasible, may be trying to force you out.

6. Pressure to Return Before Your Doctor Clears You

I’ve had clients tell me their employer called them daily demanding they come back to work, even though their treating physician hadn’t released them. This pressure is not only potentially retaliatory but also dangerous. No employer should be overriding your doctor’s medical judgment about when you’re ready to return to work.

7. Your Replacement Was Hired Before Your Termination

This is one of the most damning pieces of evidence in a retaliation case. If your employer posted a job listing for your position or hired your replacement before they terminated you, it shows the decision was premeditated and likely had nothing to do with the stated reason for your firing.

Your Layered Legal Protections Beyond 132a

One of the most important things I explain to my clients is that Labor Code 132a is just one layer of protection. California and federal law provide multiple overlapping shields that can extend your protection significantly. Understanding how these laws work together is often the difference between winning and losing a case.

FMLA and CFRA: 12 Weeks of Job-Protected Leave

The Family and Medical Leave Act (FMLA) and California’s California Family Rights Act (CFRA) each provide up to 12 weeks of job-protected leave per year for a serious health condition. If your workplace injury qualifies, and for most workers’ comp injuries it does, your employer must hold your position (or an equivalent one) open for at least 12 weeks.

This means that even setting aside workers’ comp retaliation protections, your employer may violate FMLA and CFRA by terminating you during your recovery period. These laws apply to employers with 5 or more employees (under CFRA) or 50 or more employees (under FMLA), and you must have worked for the employer for at least 12 months.

FEHA and ADA: Disability Discrimination Protections

If your workplace injury results in a disability or a condition that limits a major life activity, you gain additional protections under the Fair Employment and Housing Act (FEHA) — California Government Code Section 12940 — and the federal Americans with Disabilities Act (ADA).

Under FEHA and the ADA, your employer must engage in a good-faith interactive process to identify reasonable accommodations that would allow you to perform your essential job functions. Failing to engage in this process, or terminating you without exploring accommodations, is a separate legal violation that can result in significant damages.

FEHA is particularly powerful because it covers employers with just 5 or more employees, and California courts have interpreted “disability” more broadly than federal courts interpret it under the ADA.

How These Laws Create a Timeline of Protection

Here’s what makes this so powerful when you put it all together. Consider a typical scenario:

• Day 1: You’re injured at work and file a workers’ comp claim. Labor Code 132a protection begins immediately.
• Days 1-90: SB 497’s rebuttable presumption is active. Any adverse action during this window is presumed retaliatory.
• Weeks 1-12: FMLA/CFRA protections keep your job secure for up to 12 weeks.
• Ongoing: If your injury creates a lasting impairment, FEHA and ADA protections extend indefinitely, requiring your employer to accommodate your disability.
• Throughout: 132a protection continues for the entire duration of your workers’ comp case and beyond.

This layered timeline means that an employer who fires an injured worker often violates multiple laws simultaneously, each carrying its own penalties and remedies. In my practice, I routinely pursue claims under several of these statutes at once. It gives the client the strongest possible position and creates maximum accountability for the employer.

What Happens to Your Workers’ Comp Benefits If You’re Fired?

This is one of the most common questions I hear, and the answer often brings enormous relief. Being fired does not end your workers’ compensation benefits. Let me break this down by benefit type.

Medical Treatment Continues

Your right to medical treatment for your workplace injury is completely independent of your employment status. Whether you’re employed, fired, laid off, or quit, your employer’s workers’ comp insurance must continue to pay for all reasonable and necessary medical care related to your injury. This includes doctor visits, surgeries, physical therapy, medications, and any other treatment your authorized treating physician prescribes.

Temporary Disability Benefits Continue

Temporary disability (TD) benefits replace a portion of your lost wages while you’re recovering and unable to work, or unable to work at full capacity. These benefits continue regardless of whether you’re still employed. If you were receiving TD benefits before termination, those payments don’t stop just because your employer fired you. They continue until your doctor determines you’ve reached maximum medical improvement or you’ve hit the statutory cap.

Permanent Disability Benefits Are Unaffected

If your injury results in permanent limitations, you’re entitled to permanent disability (PD) benefits based on the nature and severity of your permanent impairment. These benefits are determined by your medical condition, not your employment status. Being fired has no impact whatsoever on what you receive for permanent disability.

Supplemental Job Displacement Benefits (SJDB)

Here’s where getting fired can actually increase your benefits. Supplemental Job Displacement Benefits provide a voucher for education and retraining if you have permanent work restrictions and your employer doesn’t offer you modified or alternative work. If you’ve been terminated, your employer obviously can’t offer you modified work, which means you’re likely entitled to the SJDB voucher. This voucher can be worth up to $6,000 for retraining and skill enhancement.

If your workers’ comp claim has been denied by the insurance company, that’s a separate legal battle. Being fired doesn’t change your right to challenge a denial.

What to Do Immediately If You’re Fired While on Workers’ Comp

If you’ve been terminated while on workers’ comp, the actions you take in the first few days and weeks are critical. Here are the steps I recommend to every client who calls me in this situation.

1. Do not sign anything without legal review. Employers often present severance agreements or separation paperwork that include waivers of your right to sue. Once you sign, it may be extremely difficult or impossible to pursue a retaliation claim. If your employer is pressuring you to sign immediately, that pressure itself is a red flag.

2. Request the reason for your termination in writing. California law gives you the right to ask for a written explanation of why you were terminated. Having the employer’s stated reason in writing is invaluable evidence. If their story changes later, the inconsistency strengthens your case.

3. Document everything you can remember. Write down every conversation, meeting, email, text message, and interaction related to your injury, your claim, and your termination. Include dates, times, who was present, and what was said. Do this as soon as possible while your memory is fresh.

4. Preserve all evidence. Save copies of your performance reviews, emails, text messages, voicemails, and any communications with your employer. If you had a work phone or work email, copy anything relevant to a personal device before you lose access. Take screenshots. Print documents. Evidence has a way of disappearing once litigation begins.

5. Continue all medical treatment. Do not skip any medical appointments. Your ongoing treatment is both medically important and legally relevant. Gaps in treatment can be used against you by the insurance company to argue your injury isn’t as serious as claimed.

6. File for unemployment benefits. If you’re able to work in some capacity, file for unemployment benefits immediately. Being on workers’ comp doesn’t automatically disqualify you from unemployment. If you can perform some work within your restrictions but were fired, you may be eligible for both benefits simultaneously.

7. Note the exact dates. Record the precise date you filed your workers’ comp claim, the date of any retaliatory actions, and the date of your termination. These dates are crucial for establishing the SB 497 presumption window and for meeting the 132a filing deadline.

8. Contact a workers’ compensation attorney immediately. Retaliation cases are time-sensitive. The sooner you consult with an attorney, the better your chances of preserving evidence, meeting deadlines, and building a strong case. Most workers’ comp attorneys, including our firm, offer free consultations and work on contingency, meaning you pay nothing unless you recover compensation.

How to File a Labor Code 132a Retaliation Claim

If you believe you were fired in retaliation for filing a workers’ comp claim, here is the process for pursuing a 132a claim.

Step 1: Consult with an attorney. While you can technically file a 132a petition on your own, I strongly recommend working with an experienced workers’ comp retaliation lawyer. These cases involve nuanced legal standards and strategic decisions that significantly impact the outcome.

Step 2: File a petition with the WCAB. Your attorney will file a petition for discrimination benefits under Labor Code 132a with the Workers’ Compensation Appeals Board. This petition must be filed within one year of the discriminatory act. The petition will outline the facts of your case, identifying the protected activity (your claim) and the retaliatory action (your termination).

Step 3: Discovery and evidence gathering. Once the petition is filed, both sides exchange evidence. Your attorney will gather your employment records, performance reviews, communications, and witness statements. The employer will be required to produce documents explaining their stated reason for the termination.

Step 4: Mediation or settlement negotiations. Many 132a cases settle before trial. The average settlement for wrongful termination cases in California ranges from $30,000 to $300,000, with large employers averaging approximately $43,400. Your specific settlement value depends on factors including your lost wages, the strength of the evidence, and the egregiousness of the employer’s conduct.

Step 5: Hearing before the WCAB. If settlement isn’t reached, your case proceeds to a hearing before a workers’ compensation judge. At the hearing, you’ll present evidence that your termination was retaliatory. If the termination occurred within 90 days of your claim (triggering SB 497), the employer bears the burden of proving otherwise.

Step 6: Award and enforcement. If the judge rules in your favor, you may receive reinstatement, back wages, the $10,000 penalty under 132a, and additional penalties under SB 497. The employer’s workers’ compensation insurer typically pays the 132a penalty, while civil penalties under SB 497 may come directly from the employer.

It’s worth noting that a 132a claim is separate from a civil lawsuit. Depending on your circumstances, you may also have grounds for a wrongful termination lawsuit in civil court under FEHA, FMLA/CFRA, or common law wrongful termination. Your attorney can advise you on whether pursuing both tracks makes sense for your situation. You can learn more about what to do if you’re fired after filing workers’ comp in California on our dedicated resource page.

The Financial Reality of Workers’ Comp Retaliation Cases

Let me share some numbers that put this in perspective. The workers’ compensation insurance industry in California posted a 127% combined ratio in 2024, the highest in over 20 years. That means insurers are paying out more in claims than they’re collecting in premiums. This financial pressure trickles down to employers, who face rising premiums, and some respond by trying to discourage claims through retaliation.

That context is important because it explains why retaliation remains a persistent problem despite strong legal protections. Employers facing financial pressure sometimes make the short-sighted decision to punish injured workers, hoping to deter future claims or reduce costs. It’s illegal, it’s wrong, and it almost always backfires when the worker knows their rights.

On the worker’s side, the financial stakes are equally significant. Losing your job while recovering from an injury can be devastating. But the legal remedies available, including back pay, penalties, reinstatement, and civil damages, can make a real difference. Workers who stand up for their rights often recover far more than they would have earned by quietly accepting an illegal termination.

How to Know If You Should File a Claim for Your Denied Workers’ Comp Situation

Many retaliation victims also face denied claims. If your employer fired you and your workers’ comp claim was denied, you may have two separate legal battles to fight, but both are absolutely winnable. The denial of your underlying claim doesn’t weaken your retaliation case. In fact, an employer who fires you and then pushes to deny your claim may actually be strengthening your evidence of retaliatory intent.

Frequently Asked Questions

Can my employer fire me while I’m on workers’ comp leave in California?

Your employer cannot fire you because you filed a workers’ comp claim. That’s illegal retaliation under California Labor Code Section 132a. However, California is an at-will employment state, which means your employer can fire you for legitimate, non-retaliatory reasons even while you’re on workers’ comp. The crucial distinction is the reason for the termination. If the firing is connected to your claim in any way, it’s likely illegal. Under SB 497, if you’re fired within 90 days of filing your claim, the law presumes the termination was retaliatory and your employer must prove otherwise.

What compensation can I receive if I was illegally fired for filing a workers’ comp claim?

Under Labor Code 132a, you can receive increased compensation up to $10,000, reinstatement to your job, full reimbursement of lost wages and benefits, and your attorney’s fees paid by the employer. SB 497 adds an additional $10,000 civil penalty per violation. If you also pursue claims under FEHA or wrongful termination in civil court, damages can be substantially higher. Average wrongful termination settlements in California range from $30,000 to $300,000, depending on the facts of the case, the employer’s size, and the worker’s lost income.

How long do I have to file a retaliation claim after being fired?

You have one year from the date of the retaliatory act to file a Labor Code 132a petition with the Workers’ Compensation Appeals Board. For FEHA claims related to disability discrimination, you must first file a complaint with the Department of Fair Employment and Housing (now the Civil Rights Department) within three years of the discriminatory act. For federal claims under the ADA, the deadline is 300 days from the discriminatory act when filing with the EEOC. I strongly recommend contacting an attorney within the first few weeks to avoid missing any deadlines.

Do I still receive workers’ comp benefits if I’m fired?

Yes. Your workers’ compensation benefits, including medical treatment, temporary disability, and permanent disability, continue regardless of your employment status. Being fired does not terminate your workers’ comp claim or stop your benefits. In many cases, being terminated while on workers’ comp can actually make you eligible for additional benefits like the Supplemental Job Displacement Benefit (SJDB) voucher, worth up to $6,000 for retraining.

What is the SB 497 rebuttable presumption and how does it help me?

SB 497, effective January 1, 2024, created a rebuttable presumption of retaliation when an employer takes adverse action against an employee within 90 days of the employee engaging in protected activity, such as filing a workers’ comp claim. This means the law assumes your employer’s action was retaliatory, and your employer must present evidence to disprove that assumption. Before SB 497, workers bore the full burden of proving retaliatory intent, which was often extremely difficult. This law significantly leveled the playing field.

Can my employer pressure me to return to work before my doctor clears me?

No. Your treating physician’s determination of when you can safely return to work must be respected. An employer who pressures you to return before medical clearance is not only potentially engaging in retaliation but also putting your health at risk. If your employer refuses to honor your work restrictions or threatens you for following your doctor’s orders, document every instance and contact an attorney. This behavior often forms part of a broader pattern of retaliation.

What’s the difference between a 132a claim and a wrongful termination lawsuit?

A 132a claim is filed with the Workers’ Compensation Appeals Board (WCAB) and is part of the workers’ comp system. It offers specific remedies including the $10,000 penalty, reinstatement, and back wages. A wrongful termination lawsuit is filed in civil court and can potentially result in larger damage awards, including emotional distress damages and punitive damages, which are not available in the workers’ comp system. In many cases, pursuing both simultaneously provides the strongest legal strategy. Your attorney can advise whether a dual-track approach makes sense for your specific circumstances.