If you are an employer, you are likely well-aware that the laws surrounding workers’ compensation in California can be complicated and seem overwhelming. Employers sometimes struggle with issues such as proper classification of employees versus independent contractors, determining whether an injury was work-related or in the course and scope of employment, and what types of paperwork need to be filed when. As a business owner, you are likely to understand that an employee is entitled to workers’ compensation benefits after sustaining a work-related injury. You also need to be aware that firing your employee because the employee exercises his or her right to file for workers’ compensation is strictly forbidden under California law.
California law provides that employers may not retaliate against an employee because or she is eligible to file a workers’ compensation claim. Under California Labor Code 132a, an employer cannot take adverse action against an employee who has filed or stated an intention to file for workers’ compensation. The types of retaliatory action that are not allowed under labor code 132a include: purposefully demoting the employee, firing an employee before he or she has the chance to file a claim, or giving unwarranted negative employee reviews. Essentially any negative action the employer takes because of the existence of a current or potential future workers’ compensation case. Witnesses to the workplace injury are also protected from retaliatory action under the law.
Employers should know, however, that an employee is not immune from adverse workplace action just because of a workers’ compensation claim. An employee can still be fired or disciplined for other reasons, as long as the reason for the adverse action is not retaliatory under labor code 132a. For example, an employer can still terminate an employee’s employment for failure to meet important industry standards or fulfilling their regular job requirements. Employers should still be cautious, however, because an employee can bring a suit under 132a for free. Even if they are not ultimately successful, defending the suit will still absorb resources and time. Before terminating or taking adverse action against an employee who is eligible for workers’ compensation, an employer should talk to an experienced workers’ compensation attorney to make sure the business is properly protected. Even then, defense of an unsupported filing may still be necessary.
If you are a business owner and have questions about retaliation, call us today. We can help you understand the workers’ compensation system and how your business fits within it.