A question we’re asked often at Kaplan Morrell is: “Can I quit my job and start a new one while I’m still on workers’ compensation?”
The short answer is yes—you can leave your job and start a new one even while you’re receiving workers’ compensation benefits. But as with many things in workers’ compensation law, the real answer is more complicated. There are several potential pitfalls that can impact your medical care, your wage benefits, and even your legal claim.
If you’re considering a job change while receiving workers’ comp benefits in Colorado, it’s essential to understand the risks and responsibilities involved. Here’s what you need to know.
When Might You Consider Leaving Your Job While on Workers’ Comp?
There are many valid reasons why you might want—or need—to leave your current job even while you’re still in the middle of a workers’ compensation claim:
- Your dream job opportunity comes along.
- You or your spouse need to relocate to a new city or state.
- You’re dissatisfied with how your current employer is handling your injury or accommodations.
In all of these scenarios, it is legally permissible to quit your job and take on new employment. However, the decision can have significant consequences for your ongoing claim and benefits.
Three Common Pitfalls When Changing Jobs on Workers’ Comp
1. Risk of Losing Lost Wage Benefits (Temporary Disability)
One of the biggest risks when switching jobs while on workers’ comp is the potential impact on your lost wage benefits.
If you are working modified duty at your current job and receiving temporary partial disability (TPD) benefits to cover the wage gap, those benefits may stop if you leave voluntarily—especially if your new job pays less.
Workers’ comp insurers are not required to pay you the difference in wages if you chose to leave the higher-paying role for one with lower earnings.
In short: voluntarily taking a lower-paying job can cut off wage replacement benefits even if your medical care remains covered.
2. Risk of Aggravating Your Injury in the New Job
If you take a new job and end up aggravating your original work injury, the insurance company handling your first claim may attempt to deny further medical care or benefits, blaming the new job for your current condition.
This could force you into the uncomfortable position of:
- Filing a new workers’ compensation claim against your new employer, and
- Fighting over which insurance company is responsible for your care.
This situation creates complexity that can delay treatment and benefits. It’s also emotionally and financially draining.
3. Risk of Being Left Without Income Protection
Imagine you leave your current job for a new opportunity. A few months later, the new position doesn’t work out—you’re laid off, or the company closes. You now have:
- Work restrictions due to your injury
- No job
- Possibly no wage loss benefits because you voluntarily left the previous position
In these situations, workers’ comp benefits may only resume if your medical restrictions change or your physician determines you require surgery or additional treatment that takes you fully off work again.
Should You Leave Your Job? Questions to Consider
Before making a decision, ask yourself:
- Is the new job necessary or a once-in-a-lifetime opportunity?
- Can your current employer accommodate your restrictions, even temporarily?
- Is the new job physically appropriate for your injury?
- Could leaving negatively affect your wage loss benefits?
- And most importantly: Have you spoken with a workers’ compensation attorney first?
Don’t Quit Without Legal Guidance—Documentation Matters
One of the biggest mistakes we see is injured workers quitting in frustration without proper documentation. For example, if your employer is refusing to accommodate your restrictions—such as lifting limits or reduced hours—you must have that properly documented before leaving.
If you simply stop showing up or resign without explanation, it could harm your ability to claim future benefits or appeal wrongful denials.
By working with an experienced workers’ compensation attorney, we can document the reasons for leaving, advocate for accommodations, and protect your rights to continued medical care and possible wage benefits
Bottom Line: Every Case Is Different—We’re Here to Help
In some cases, taking the new job is the right decision for your life and future. In others, it may jeopardize your current benefits unnecessarily. The key is to have all the facts before you act.
At Kaplan Morrell, we’ve been helping Colorado’s injured workers since 1995. Our team can help you weigh the pros and cons and guide you through any transition safely and strategically. Call us at 303-780-7329 now and we’ll help you make the right move.
