Fired After Filing Workers’ Comp in California? That’s Illegal

Fired After Filing Workers’ Comp in California: Your Rights, Legal Options, and How to Fight Back

Few things are more devastating than suffering a workplace injury, filing a workers’ compensation claim to cover your medical bills and lost wages, and then getting fired for it. If this has happened to you, I want you to know something right away: California law is firmly on your side.

My name is Eman Yazdchi, and I have spent over 20 years as a California Certified Workers’ Compensation Specialist fighting for injured workers who have been wrongfully terminated after exercising their legal rights. In that time, I have seen every employer tactic in the book — from sudden “performance issues” that never existed before your claim, to manufactured layoffs that conveniently target only the worker who filed for benefits.

This article will walk you through everything you need to know if you were fired after filing a workers’ comp claim in California: the laws that protect you, how to prove retaliation, what damages you can recover, and the concrete steps you should take right now to protect your case. If you have questions after reading this, call my office at (661) 273-1780 for a free consultation.

Understanding the Difference: Fired “While On” Workers’ Comp vs. Fired “Because Of” Workers’ Comp

This is the single most important distinction in workers’ comp retaliation law, and it is the one that causes the most confusion among injured workers. Let me be direct about it.

Fired While on Workers’ Comp

California is an at-will employment state under Labor Code Section 2922. This means that, in general, your employer can terminate you at any time, for any lawful reason — or even for no reason at all. Being on workers’ compensation leave does not, by itself, make you immune from termination.

Your employer can still fire you while you are receiving workers’ comp benefits if the reason for termination is genuinely unrelated to your claim. Common examples include:

• Company-wide layoffs driven by economic conditions
• Elimination of your position due to restructuring
• Documented, pre-existing performance problems that began before your injury
• Violation of company policies unrelated to your injury or claim

The key word in all of those examples is genuine. The reason must be real, documented, and not a pretext for getting rid of you because you filed a claim.

Fired Because of Workers’ Comp

This is where the law draws a hard line. If your employer fired you because you filed a workers’ compensation claim, reported a workplace injury, or exercised any right under the workers’ comp system, that termination is illegal. Period.

California provides some of the strongest anti-retaliation protections in the country for injured workers. Under Labor Code Section 132a, it is a misdemeanor for any employer to discharge or threaten to discharge an employee because that employee filed or intended to file a workers’ compensation claim. This is not just a civil matter — it is a criminal statute, which tells you how seriously California takes this issue.

The practical difference between these two scenarios is what motivated the firing. And proving that motivation is what the rest of this article is about. For more on this distinction, read our guide on California workers’ comp retaliation.

California Laws That Protect You from Workers’ Comp Retaliation

You are not relying on a single statute for protection. California has layered multiple laws to shield injured workers from employer retaliation, and understanding each one gives you — and your attorney — more tools to fight back.

Labor Code Section 132a: The Workers’ Comp Anti-Retaliation Statute

Section 132a is the primary weapon against workers’ comp retaliation. It declares it a policy of California that no employee should be discharged, threatened with discharge, or discriminated against because they have filed or made known their intention to file a workers’ compensation claim. Violations are punishable as a misdemeanor, and injured workers can recover:

• Reinstatement to their former position
• Back pay and lost wages from the date of termination
• Increased compensation up to $10,000
• Costs and expenses up to $250

Section 132a claims are filed with the Workers’ Compensation Appeals Board (WCAB), not in civil court. This is significant because the WCAB process is generally faster and does not require a jury trial.

Labor Code Section 1102.5: Whistleblower Protections

Section 1102.5 protects employees who report violations of law — including unsafe working conditions that led to their injury. If your workplace injury was caused by safety violations, and you reported those violations or filed a workers’ comp claim related to them, you have whistleblower protection in addition to 132a protection.

Whistleblower claims can be filed in civil court and may entitle you to broader damages than a 132a petition alone, including emotional distress and punitive damages.

SB 497: The Rebuttable Presumption Game-Changer

Senate Bill 497, which took effect on January 1, 2024, is one of the most significant developments in California employment law in recent years. SB 497 created a rebuttable presumption of retaliation if an employer takes adverse action against an employee within 90 days of the employee engaging in protected activity.

What does this mean in plain English? If you filed a workers’ comp claim, reported a workplace injury, or engaged in any other protected activity, and your employer fired you within 90 days, the law presumes your employer retaliated against you. The burden shifts to the employer to prove they had a legitimate, non-retaliatory reason for the termination.

Before SB 497, you — the injured worker — had to prove the employer’s retaliatory intent. Now, if the timing falls within that 90-day window, your employer has to prove they did not retaliate. That is a massive shift in your favor.

SB 497 also authorizes civil penalties up to $10,000 per employee per violation, paid to the affected employee. This is on top of any other damages you recover.

Labor Code Section 2922 and Its Limits

Employers love to cite Section 2922 — California’s at-will employment doctrine — as their defense. “We can fire anyone at any time for any reason.” And that is true, as far as it goes. But 2922 has a critical exception: you cannot fire someone for an unlawful reason. Filing a workers’ comp claim is a legally protected activity, and terminating someone for doing so is unlawful. At-will employment is a shield, not a sword, and it does not protect employers who break the law.

Elements of a Wrongful Termination Claim After Filing Workers’ Comp

To prevail on a workers’ comp retaliation claim, you generally need to establish four elements. Here is what they are and how they apply in practice.

Element 1: You Were an Employee

This may seem obvious, but misclassification is rampant in California. According to the Economic Policy Institute, an estimated 1 in 5 California workers is misclassified as an independent contractor. If your employer classified you as a contractor but you were functionally an employee — they controlled your schedule, provided your tools, dictated how you performed work — you still have workers’ comp rights and retaliation protections under California law.

Element 2: You Engaged in Protected Activity

Protected activity includes:

• Filing a workers’ compensation claim
• Telling your employer you intend to file a claim
• Reporting a workplace injury
• Testifying or cooperating in another worker’s comp proceeding
• Reporting unsafe working conditions

Importantly, you do not actually have to file a formal claim. Under Section 132a, merely making your intention known is protected activity.

Element 3: Your Employer Took Adverse Action

Adverse action is not limited to outright termination. It includes:

• Firing or layoff
• Demotion or reduction in pay
• Reduction in hours or shift changes
• Denial of promotion
• Harassment, intimidation, or hostile work environment
• Reassignment to less desirable duties
• Constructive discharge (making conditions so intolerable you are forced to quit)

Element 4: A Causal Connection Between the Protected Activity and the Adverse Action

This is where most cases are won or lost. You must show that your protected activity was a substantial motivating reason for the adverse action. It does not have to be the only reason — just a substantial one.

Courts and the WCAB look at several factors to determine causation:

• Temporal proximity: How close in time was the termination to your claim? Under SB 497, anything within 90 days creates a presumption of retaliation.
• Departure from normal procedures: Did the employer skip their usual progressive discipline process?
• Disparate treatment: Were other employees with similar performance issues treated differently?
• Shifting explanations: Has the employer given different reasons for the termination at different times?
• Statements by management: Did a supervisor make comments about your claim, injury, or work restrictions?

How to Gather Evidence to Prove Retaliation

Evidence wins cases. If you suspect you were fired because of your workers’ comp claim, start collecting evidence immediately — before memories fade and documents disappear.

Document the Timeline

Create a detailed timeline of events, including:

• Date of your workplace injury
• Date you reported the injury to your employer
• Date you filed your workers’ comp claim (DWC-1 form)
• Date of your termination
• Dates of any negative performance reviews, write-ups, or disciplinary actions — and whether any of these occurred before your injury
• Dates and details of any conversations about your claim with supervisors or HR

The California Division of Workers’ Compensation (DWC) requires employers to provide a DWC-1 claim form within one working day of learning about an injury. If your employer delayed or refused to provide this form, document that — it is evidence of hostility toward your claim.

Save All Communications

Preserve every email, text message, voicemail, Slack message, and written communication related to your injury, claim, or termination. This includes:

• Messages from your employer about your claim or work restrictions
• Your termination letter or any written explanation for the firing
• Performance reviews — both before and after your injury
• Messages from coworkers who witnessed retaliatory behavior

Forward personal copies of work emails to your personal email before you lose access to your work account. Once you are terminated, your employer will likely shut off your access immediately.

Identify Witnesses

Coworkers who heard a supervisor complain about your claim, saw you being treated differently after filing, or who were told not to file their own claims are valuable witnesses. Get their contact information and write down what they witnessed while the details are fresh.

Obtain Your Personnel File

Under Labor Code Section 1198.5, you have the right to inspect and copy your personnel file within 30 days of making a written request. Your employer must make the file available within 30 calendar days. Review it carefully — employers sometimes add fabricated documentation after the fact to justify a termination.

Request Your Medical Records

Your treating physician’s records documenting your injury, treatment, and work restrictions are critical evidence. They establish the legitimacy of your claim and counter any employer argument that your injury was not real or was exaggerated.

Where to File: WCAB vs. DFEH vs. Civil Court

One of the strategic decisions your attorney will make is where to file your retaliation claim. Each forum has advantages and limitations.

Workers’ Compensation Appeals Board (WCAB) — Labor Code 132a Petition

A 132a petition is filed directly with the WCAB as part of your workers’ comp case. Advantages include:

• Faster resolution — the WCAB process is generally quicker than civil court
• Lower burden of proof than civil court
• No need for a separate lawsuit
• Can be combined with your underlying workers’ comp claim

Limitations include the capped damages: reinstatement, lost wages, up to $10,000 in increased compensation, and costs up to $250. There are no emotional distress or punitive damages available through the WCAB.

The statute of limitations for a 132a petition is one year from the date of the discriminatory act.

California Civil Rights Department (CRD, formerly DFEH)

If your termination also involved discrimination based on a protected characteristic — for example, if your employer fired you because of a disability related to your workplace injury — you may have a claim under the Fair Employment and Housing Act (FEHA). FEHA claims are filed with the CRD.

Under FEHA, employers with five or more employees must engage in an interactive process to provide reasonable accommodations for employees with disabilities, including work-related injuries. Failure to accommodate, combined with termination, can give rise to both a FEHA claim and a 132a petition.

You must file a complaint with the CRD within three years of the discriminatory act. The CRD will investigate or issue a right-to-sue letter allowing you to proceed in civil court.

Civil Court — Wrongful Termination in Violation of Public Policy

A wrongful termination lawsuit filed in California Superior Court offers the broadest range of damages:

• Lost wages (past and future)
• Lost benefits (health insurance, retirement contributions, etc.)
• Emotional distress
• Punitive damages (if the employer’s conduct was malicious, oppressive, or fraudulent)
• Attorney’s fees in some circumstances

The statute of limitations for wrongful termination in violation of public policy is generally two years from the date of termination.

In many cases, the strongest approach is to pursue claims in multiple forums simultaneously — a 132a petition at the WCAB and a civil lawsuit for wrongful termination and FEHA violations. An experienced California workers’ comp attorney can advise you on the best strategy for your specific situation.

Damages You Can Recover

The total compensation available to you depends on which claims you pursue and in which forums. Here is a comprehensive breakdown.

Through the WCAB (132a Petition)

• Reinstatement: Return to your former position with the same seniority, benefits, and pay
• Back wages: All wages lost from the date of termination through reinstatement or the date of the award
• Increased compensation: Up to $10,000 as a penalty to the employer
• Costs and expenses: Up to $250 for litigation costs

Through Civil Court

• Economic damages: Lost wages, lost benefits, cost of job search, difference in pay if you took a lower-paying job
• Non-economic damages: Emotional distress, anxiety, depression, loss of enjoyment of life, damage to reputation
• Punitive damages: Designed to punish particularly egregious employer conduct — these can be multiples of your compensatory damages
• SB 497 penalties: Up to $10,000 per employee per violation
• Attorney’s fees: Under certain statutes, the employer may be required to pay your attorney’s fees

What Are These Cases Actually Worth?

Every case is different, and I cannot give you a number without knowing the facts of your situation. However, I can tell you that workers’ comp retaliation cases in California regularly settle for amounts that reflect the severity of the employer’s conduct. Factors that increase the value of your case include:

• Strong evidence of retaliatory intent (smoking-gun emails, supervisor statements)
• Termination within the 90-day SB 497 presumption window
• High pre-injury earnings
• Length of employment
• Severity of emotional distress
• Employer’s financial resources
• Whether the employer has a pattern of retaliating against workers’ comp claimants

Common Employer Defenses — And How to Beat Them

Employers and their attorneys have a standard playbook for defending retaliation claims. Knowing their arguments in advance helps you prepare to counter them.

“We Fired Them for Poor Performance”

This is the most common defense. The employer will produce performance reviews, write-ups, and disciplinary records to argue the termination was based on performance, not retaliation.

How to beat it: Compare the timing and content of performance documentation before and after your claim. If you had consistently positive reviews for years and then suddenly received negative reviews after filing your claim, that shift in documentation is powerful evidence of pretext. Also look at whether other employees with similar performance issues were treated the same way — if they were not terminated, you have evidence of disparate treatment.

“It Was a Legitimate Layoff/Restructuring”

The employer claims your position was eliminated as part of a broader business decision.

How to beat it: Investigate whether the employer hired someone to fill your role after you were “laid off.” Check job postings. Ask former coworkers if someone new was brought on. If the position was truly eliminated, determine whether you were the only one affected or if the layoff was broader. A “layoff” of a single person — the one who just filed a workers’ comp claim — is suspicious on its face.

“They Couldn’t Perform Essential Job Functions”

The employer argues that your work restrictions prevented you from doing the job, so they had no choice but to terminate.

How to beat it: Under FEHA, the employer was required to engage in an interactive process to explore reasonable accommodations before terminating you. Did they do that? Did they offer modified duty, reassignment, or other accommodations? If they went straight to termination without exploring accommodations, they have violated FEHA — and you have an additional claim.

According to the California Commission on Health and Safety and Workers’ Compensation, approximately 70% of injured workers are able to return to some form of work with appropriate accommodations. Employers who skip the interactive process are not just breaking the law — they are ignoring a solution that works the vast majority of the time.

“They Violated Company Policy”

The employer claims you broke a workplace rule and the termination was for that reason alone.

How to beat it: Examine whether the employer enforced this policy consistently. If other employees broke the same rule and received warnings while you were fired, that inconsistency undermines the defense. Also investigate whether the alleged policy violation actually occurred or was fabricated after the fact.

“There Was No Causal Connection”

The employer argues the termination and the claim were coincidental — there was no connection between them.

How to beat it: This is where SB 497 is transformative. If the termination occurred within 90 days, the presumption of retaliation shifts the burden to the employer. Even outside the 90-day window, temporal proximity combined with other circumstantial evidence — changed treatment, pretextual reasons, supervisor comments — can establish the causal connection.

Step-by-Step: What to Do Right Now If You Were Fired After Filing Workers’ Comp

If you are reading this because you were recently fired after filing a claim, here is exactly what I recommend you do, in order of priority.

Step 1: Do Not Sign Anything Without Legal Review

Your employer may present you with a severance agreement, a general release, or other documents at termination. Do not sign anything until an attorney has reviewed it. Many severance agreements include releases that would waive your right to file a retaliation claim. You are not obligated to sign these on the spot, no matter what your employer tells you.

Step 2: Preserve All Evidence

Forward emails, screenshot text messages, save voicemails, and copy any documents you have access to. Do this immediately — once your employer cuts off your access, these materials may be gone.

Step 3: File for Unemployment Insurance

You should file for unemployment benefits with the California Employment Development Department (EDD) as soon as possible. The filing deadline is generally within the first week after termination to avoid losing benefits. When you file, state that you were terminated — do not say you quit or resigned. If your employer contests your claim and states you were fired for cause, the EDD’s findings can be useful evidence in your retaliation case.

Step 4: Continue Your Medical Treatment

Your workers’ comp medical treatment does not stop just because you were fired. Under California law, you are entitled to all reasonably necessary medical treatment for your industrial injury regardless of your employment status. Continue seeing your treating physician and following your treatment plan. Do not let your employer’s actions disrupt your medical care.

Step 5: Contact a Workers’ Comp Retaliation Attorney

Time is critical. The statute of limitations for a 132a petition is one year. The statute for a wrongful termination lawsuit is two years. The statute for a FEHA claim is three years. But evidence degrades over time, witnesses forget details, and employers have a tendency to “lose” documents. The sooner you engage an attorney, the better your chances of preserving critical evidence and building a strong case.

Step 6: Keep a Written Journal

Start a daily journal documenting your emotional state, physical symptoms, job search efforts, and any contact from your former employer. This contemporaneous record will be valuable evidence of emotional distress damages and will help your attorney understand the full impact of the termination on your life.

Important Deadlines and Statutes of Limitations

Missing a deadline can destroy your case. Here are the critical timelines you need to know.

• 132a Petition (WCAB): Must be filed within 1 year of the discriminatory act
• Wrongful Termination (Civil Court): Must be filed within 2 years of the termination
• FEHA Claim (CRD): Must be filed within 3 years of the discriminatory act
• SB 497 Rebuttable Presumption: Applies when adverse action occurs within 90 days of protected activity
• DWC-1 Claim Form: Employer must provide within 1 working day of learning of injury
• Personnel File Request: Employer must respond within 30 calendar days

Do not wait until these deadlines are approaching. Contact an attorney as soon as possible to ensure all claims are filed on time and all evidence is preserved.

Real-World Warning Signs That Your Employer Is Retaliating

In my 20+ years of practice, I have seen certain patterns emerge repeatedly. If any of these sound familiar, you may have a retaliation claim — even if you have not been fired yet.

• Your supervisor’s attitude toward you changed noticeably after you reported your injury or filed your claim
• You received your first-ever negative performance review shortly after filing
• You were placed on a “performance improvement plan” (PIP) you had never been warned about
• Your hours were reduced, your schedule was changed to less desirable shifts, or your responsibilities were taken away
• Coworkers told you that management was complaining about your claim or your work restrictions
• You were written up for things that other employees do without consequences
• Your employer pressured you to return to full duty before your doctor cleared you
• Your employer “forgot” to submit your claim form or delayed processing your benefits
• You were told there was “no light duty available” when you know the employer has provided it to others

If you are experiencing any of these warning signs, do not wait to be fired. Consult with a California workers’ comp retaliation attorney now to protect your rights and create a record of the retaliatory conduct.

Frequently Asked Questions

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

Technically, yes — California’s at-will employment doctrine means your employer can terminate you while you are on workers’ comp leave, but only for a legitimate, non-retaliatory reason. If the reason for the firing is connected to your claim, your injury, or your exercise of workers’ comp rights, the termination is illegal under Labor Code Section 132a and potentially other statutes. The critical question is not whether you were fired while on workers’ comp, but why you were fired. Read more in our article about whether you can be fired while on workers’ comp.

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

It depends on the type of claim. A Labor Code Section 132a petition must be filed with the WCAB within one year of the retaliatory act. A wrongful termination lawsuit in civil court must be filed within two years. A FEHA complaint must be filed with the CRD within three years. However, I strongly recommend contacting an attorney within the first few weeks — evidence preservation is critical, and waiting costs you leverage.

What if my employer says they fired me for performance reasons, not because of my claim?

This is the most common defense employers use, and it is often pretextual. Your attorney will examine whether the performance concerns were documented before your claim, whether other similarly-situated employees were treated the same way, and whether the timing of the discipline is suspicious. Under SB 497, if you were fired within 90 days of your claim, the law presumes the termination was retaliatory, and your employer must prove otherwise.

Do I still receive workers’ comp benefits after being fired?

Yes. Your right to workers’ compensation benefits — including medical treatment, temporary disability, permanent disability, and supplemental job displacement benefits — is not affected by your termination. Your employer cannot cut off your benefits because they fired you. If your benefits have been stopped or denied following your termination, contact a California workers’ comp attorney immediately.

What is my retaliation case worth?

The value of your case depends on many factors, including the strength of the evidence of retaliation, your earnings, the length of your employment, the severity of emotional distress, and whether the employer’s conduct warrants punitive damages. Through the WCAB alone, you can recover lost wages plus up to $10,000 in penalties. Through civil court, damages can be significantly higher, potentially including six or seven figures when emotional distress and punitive damages are factored in. The only way to get an accurate estimate is to have an attorney review the specific facts of your case.

Why You Need a California Certified Workers’ Comp Specialist

Workers’ comp retaliation cases sit at the intersection of workers’ compensation law, employment law, and disability rights law. They require an attorney who understands all three areas and knows how to coordinate claims across multiple legal forums.

As a California Certified Workers’ Compensation Specialist with over two decades of experience, I have the technical knowledge to maximize your recovery through the WCAB and the litigation experience to pursue wrongful termination claims in civil court. I have seen the employer playbook hundreds of times, and I know how to dismantle their defenses.

If you were fired after filing a workers’ comp claim in California, you have rights — powerful rights backed by strong statutes and, as of 2024, a rebuttable presumption of retaliation that shifts the burden to your employer. But these rights mean nothing if you do not act on them.

Call my office today at (661) 273-1780 for a free, confidential consultation. I will review the facts of your case, explain your options, and help you decide the best path forward. There is no cost to speak with me, and if I take your case, you pay nothing unless we win.

You were injured on the job. You did the right thing by filing a claim. You should not be punished for it — and under California law, you do not have to be.