Legal Insight | Workers’ Compensation
Last Updated: August 2026
One of the most common questions injured workers ask is whether their employer can terminate them while they are receiving workers’ compensation benefits. The short answer is yes, but not because they filed a workers’ compensation claim.
California law prohibits employers from discriminating against employees for filing or intending to file a workers’ compensation claim.
The Law
California Labor Code section 132a prohibits discrimination against an employee because they filed or made known their intent to file a workers’ compensation claim.
The California Fair Employment and Housing Act (Government Code § 12940) may also require employers to provide reasonable accommodations or engage in the interactive process when an employee has work restrictions resulting from an industrial injury.
What This Means
An employer may lawfully terminate employment for legitimate business reasons, such as:
- A reduction in force.
- Misconduct unrelated to the injury.
- Inability to perform the essential functions of the position after reasonable accommodation has been considered.
However, terminating an employee because they filed a workers’ compensation claim or retaliating against them for asserting their rights may violate Labor Code section 132a and, depending on the facts, other California employment laws.
Employee Tip
Keep copies of:
- Work status reports,
- Employer correspondence,
- Text messages and emails,
- Disciplinary notices,
- Termination paperwork
These documents often become important evidence if retaliation is alleged.
Questions about your California workers’ compensation claim or whether your employer lawfully terminated your employment?
Contact Sandra Pultz Law to discuss your situation and legal options.
Authorities
- California Labor Code § 132a
- California Government Code § 12940
- California Code of Regulations, Title 2 (Reasonable Accommodation Regulations)
About the Author
Sandra Pultz, Esq. is an attorney representing injured workers, employees, and first responders throughout California. Her practice focuses on workers’ compensation, critical incident response, discipline defense, and employment law.
Disclaimer
This article is provided for informational and educational purposes only and is not intended as legal advice. Viewing, reading, or interacting with this content does not create an attorney-client relationship with Sandra Pultz Law. You should not act or refrain from acting based on the information contained herein without first consulting an attorney regarding your specific circumstances. Please do not send confidential or sensitive information through this website, social media, email, or other electronic communications until an attorney-client relationship has been established.
Attorney Advertising
This article is considered attorney advertising in the State of California. Past results do not guarantee future outcomes. Every case is unique and must be evaluated on its own facts and applicable law. Sandra Pultz is licensed to practice law in the State of California.
Notice
Making a false or fraudulent workers’ compensation claim is a felony subject to up to five years in prison or a fine of up to $150,000 or double the value of the fraud, whichever is greater, or by both imprisonment and fine.
Attorney Responsible
Sandra Pultz Law | Sandra Pultz, Attorney at Law
4601 Temescal Canyon Road #401, Corona, CA 92883
949-300-6480 | Licensed in California