Will an Employer Stop Workers' Compensation Payments if You Sue for Wrongful Termination?

Winning a lawsuit for wrongful termination does not necessarily mean you will lose your workers' compensation benefits. The key to understanding this situation lies in the mechanics of workers' compensation and the policies set by insurance companies.

State Fund and Insurance: A Source of Workers' Compensation

Workers' compensation benefits are not directly provided by the employer. Instead, they come from a state fund, which is administered by an insurance company. This means that, unlike typical employer-paid benefits, the state is the primary payer of these benefits. This arrangement ensures a fair and consistent system for compensation of employees who suffer from work-related injuries or illnesses.

The Employer Cannot Stop Workers' Compensation Payments

Employers have no legal authority or incentive to stop these payments once they have been initiated. Even if an employee decides to sue their former employer for wrongful termination, the ongoing stream of workers' compensation benefits is protected by state law and administrative regulations.

Insurability and Financial Stability

The insurance company responsible for paying out workers' compensation benefits is under no obligation to cease payments simply because an employee files a lawsuit against their former employer. This is a crucial point: the financial stability of the insurance company ensures that benefits will continue without interruption.

Why Employers Would Not Want to Stop Payments

On a practical level, terminating workers' compensation payments would likely increase the employer's legal and financial risk. An employee who sues for wrongful termination and also faces the sudden loss of their workers' compensation benefits may become an even stronger litigant, knowing that their financial situation is precarious.

Legal Advice and Potential Risks

While the mechanics and legal framework explain why workers' compensation payments will generally continue, it is important to seek legal advice. Although attorneys are generally not allowed to provide legal advice on forums, discussing the specifics of your case with an attorney can offer valuable insights. They can guide you on the potential outcomes and help you navigate the complex interplay of both workers' compensation and wrongful termination laws.

Conclusion

Once the workers' compensation claims are filed and approved by the state agency, the benefits are secure and independent of any lawsuits your ex-employer might face. The protection offered by the state and the insurance company ensures that you can focus on your recovery and legal remedy without worrying about the discontinuance of your workers' compensation benefits.

Additional Resources and Keywords

Related keywords include workers' compensation, wrongful termination, and insurance company. If you need further information or legal advice, consulting with an attorney is highly recommended.