Losing Your Job and Health Insurance During a Workers’ Compensation Claim

Are you worried about losing your job and possibly even your health insurance during a workers’ compensation claim? Check out this short video by Buffalo Workers Compensation Lawyer Jerry A. Gambino for guidance. If you have questions about your workers compensation claim, please contact us to schedule a consultation. We welcome the opportunity to serve you.

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Current guidance (reviewed September 22, 2026): The video offers general background. The written information below explains current public guidance from the New York Workers’ Compensation Board and the U.S. Department of Labor. Eligibility and deadlines depend on your circumstances.

Workers’ compensation benefits and your job are separate questions

New York workers’ compensation can pay for necessary care and, when the legal requirements are met, part of wages lost because of a work-related injury or illness. Receiving or applying for those benefits does not automatically require an employer to keep a particular job open indefinitely. The Workers’ Compensation Board says an employer may need to fill a position for business reasons when an employee cannot work. At the same time, an employer may not fire or discriminate against a worker because the worker claimed or tried to claim workers’ compensation.

Those rules address different facts. If your position has ended, keep the termination notice, work restrictions, dates of absences, and communications with the employer. Ask for the reason in writing when possible. An attorney can compare the employer’s explanation with the timing and the available records before advising whether a discrimination complaint or another claim is appropriate.

Protection from retaliation for making a claim

New York Workers’ Compensation Law section 120 prohibits firing or otherwise discriminating against an employee because the employee claimed or tried to claim workers’ compensation, or testified in a workers’ compensation proceeding, when no other valid reason is shown. The Board identifies Form DC-120 for a discrimination complaint and says it must be filed no later than two years after the action. A job loss during a claim does not, by itself, prove retaliation; the circumstances and evidence matter.

Write down when you reported the injury, filed the claim, received medical restrictions, and learned of a change in your job. Save schedules, performance records, messages, and any notice of layoff or termination. Do not change or discard records. A prompt review can help identify the correct forum and deadline.

Family and Medical Leave Act protection

The federal Family and Medical Leave Act (FMLA) may provide up to 12 workweeks of unpaid, job-protected leave in a 12-month period for an eligible employee with a qualifying serious health condition. During covered leave, the employer generally must continue group health benefits under the same conditions as if the employee kept working. This is not automatic for every person with a workers’ compensation injury.

For a typical private-sector employee, the employer must be covered and the worker generally must have at least 12 months of service, 1,250 hours of service in the prior 12 months, and a worksite with at least 50 employees within 75 miles. Public agencies and schools have different employer-coverage rules. If FMLA leave is available, ask the employer for the required eligibility and designation notices and keep copies of any medical certification. The U.S. Department of Labor explains that employees generally must be returned to the same or a virtually identical position after qualifying leave.

A simple 50-employee or 12-week rule omits these eligibility and coverage details. If you are nearing the end of leave, ask your employer and health plan administrator what coverage or continuation options apply. The answer can depend on the plan and other laws as well as FMLA.

What happens to wage benefits if employment ends?

A termination or layoff does not automatically answer whether workers’ compensation wage benefits continue. The Board looks at work-related disability, medical evidence, and earnings. Lost-wage benefits may be available when you cannot work for more than seven days or your pay is reduced because you work fewer hours or different duties. Tell the insurer, your representative, and your treating provider about changes in work status or earnings so the claim record stays accurate.

If a provider clears you to work but your former job is unavailable, the Board says you may be able to seek unemployment insurance when you are ready, willing, and able to work. Unemployment eligibility is a separate determination. Keep medical restrictions and a record of your job search. A worker who remains unable to work should ask how the medical evidence supports continuing workers’ compensation benefits.

Common questions

Can my employer fire me just for filing a workers’ compensation claim?

No. New York law prohibits retaliation for claiming or attempting to claim benefits. An employer may cite another valid reason for a job decision, so evidence about the actual reason matters. The Board provides a discrimination complaint process and a two-year filing limit measured from the discriminatory action.

Does workers’ compensation keep my health insurance active?

Workers’ compensation medical benefits address covered care for the work-related condition. They are different from an employer’s general group health plan. Eligible FMLA leave can require continuation of group coverage during the protected leave period. Ask the plan administrator about your particular coverage and any continuation options when employment or leave status changes.

What should I do right after losing my job?

Keep the employer’s written notice and benefits information. Obtain updated medical work restrictions, notify the claims representative of the employment change, and review any FMLA or health-plan notices. If you suspect retaliation, act promptly because the Board’s complaint deadline is separate from the workers’ compensation claim.

Discuss your circumstances with Cole Sorrentino

Our Buffalo workers’ compensation team can review your claim, medical restrictions, job change, and any potential discrimination issue. Learn about our workers’ compensation practice or contact us for an individual review. This page provides general information; it does not determine your eligibility or deadlines.

Sources: NYS Workers’ Compensation Board: Returning to Work; Lost Wage Benefits; Form DC-120 and section 120 notice; U.S. Department of Labor: FMLA Fact Sheet.

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