Can You Lose Your Job After Being Injured in an Auto Accident?

Legally Reviewed and Edited by: Terry Cochran

An auto accident could cost you your job. Michigan is an at-will state, meaning your employer doesn’t need a reason to fire you. That said, there are a few exceptions to this rule which could protect you from losing your job as you recover. Understanding your employment rights is one of the best ways to prevent job loss after a car accident.

Legal Protections for Injured Workers

Although Michigan is an at-will employment state, it has laws that protect injured workers. These include the Family and Medical Leave Act, earned sick time off, and workers’ compensation. Let’s look at how each protects you:

Family and Medical Leave Act (FMLA)

The Family and Medical Leave Act (FMLA) can protect you from job loss after a car accident. FMLA is a federal regulation that grants employees of public institutions and certain private sector employers up to 12 work weeks of unpaid leave per year, with additional health benefits.

You are eligible for leave under FMLA if:

• You work for a public agency (federal, state, or local) or
• You work in the private sector for an employer with at least 50 employees within 20 work weeks in the current or preceding year; and
• You have worked at least 1,250 hours within the past 12 months before the start of your leave,
• You work at a location where the employer has 50 or more employees, or within 75 miles of that location.
• You have worked for the employer for 12 months (usually counted, dating back up to seven years, unless you have special exceptions, such as performing military duties), and
• You are requesting leave for a qualifying reason (such as medical leave for a condition that prevents you from working)

One of the benefits of the FMLA is that it protects you from job loss after a car accident. Employers are legally required to reinstate you at your previous job or an equivalent one once you return from leave. An alternative position must meet the following conditions:

• Offer the same general working schedule and geographical location as your previous role
• Offer identical pay and opportunities
• Has the exact skill requirements, authority, and responsibility
• Offers the same benefits as your last role

In addition to protecting your employment, FMLA leave also allows you access to health benefits and other benefits such as disability and life insurance.

Earned Sick Time Off

The Earned Sick Time Act offers legal protection for injured workers in Michigan. Under this act, employers in Michigan with at least one employee are required to provide a minimum of one hour of earned sick time off for every 30 hours worked.

If you’re injured in a car accident, you can use your earned sick time off to take care of your injuries while maintaining an income at the same hourly rate. In some cases, you can also access an additional 32 hours of unpaid sick time off every year.

Earned sick time off provides you with job security as your employer cannot retaliate or discriminate against you for using your earned sick time off to take care of your injuries or those of your loved ones.

Michigan law allows you to carry over unused earned sick time to the following year, which can offer you adequate time to recover from your injuries while protecting your job.

Workers’ Compensation

Workers’ compensation doesn’t necessarily protect you from job loss after a car accident, but it can help you cover some of the costs of being injured while on the job. You are eligible for workers’ compensation benefits if you were injured in a car accident while:

• On the employer’s premises
• While traveling for work (except commuting to or from work)

If you were in a work-related car accident, you must notify your employer of your injury and seek immediate medical treatment.

You can also file a workers’ compensation claim to access benefits for lost wages, medical costs, and rehabilitation expenses.

Since Michigan is an at-will state, you could still lose your job after a job-related accident, but this does not exempt your employer from providing workers’ compensation benefits. Still, if you feel that your auto injury and job termination may be an act of retaliation, you can contact a workers’ compensation lawyer to protect your employment rights after a car accident.

What to Do When You Lose a Job After a Car Accident

Dealing with an auto accident injury and job termination at the same time can be overwhelming. However, you can take several steps to take care of yourself and your finances as you recover. Here are some options:

Apply for No-Fault Wage Loss Benefits

No-fault wage loss benefits compensate you for the wages you lose due to a car accident. In Michigan, these benefits are available up to a year after the date of the accident, after which you forfeit your rights to claim no-fault wage loss benefits.

To file for these benefits, you must provide proof of lost income (eg. The last two pay stubs before your accident, a work disability certificate, and wage verification from your employer.

These benefits are available if you were employed or temporarily unemployed at the time of the accident. They reimburse you for the wages you lose due to the accident, up to 85% of your lost wages. The maximum benefits you can recoup per month vary by year (adjusted for inflation). From October 1st, 2024, to September 30th, 2025, the maximum benefits are $7,014.

Unemployment Benefits

You can apply for unemployment benefits if you lose your job after a car accident and are still capable and available for a full-time position. These benefits can cushion you as you search for another job, provided you meet the eligibility requirements.

Disability Benefits

Michigan offers supplemental Social Security Income (SSI) and Social Security Disability Insurance benefits to help you navigate the financial strain of a disability. If you were involved in a car accident that caused a disability that limits your ability to work, these benefits can fill in the gap of being unable to work.

Personal Injury Claim

You can file a personal injury claim if you were not at fault for the car accident that caused your injuries. These injury claims allow you to recover a range of compensation benefits, including:

• Medical expenses
• Lost wages and earning potential
• Pain and suffering

Find an Auto Accident Attorney

If you’re going through a job loss after a car accident, speak with our compassionate, knowledgeable truck accident lawyers at Cochran, Kroll, & Associates, P.C. We can review your case, guide you through the claims process, and draft an impactful victim impact statement for your car accident case. Contact us today for a free, no-obligation consultation.

Our contingency fee basis means we only get paid if we win your case, so there is no financial risk to you to get started. Call our law firm today at 1-866-642-4529 and schedule your no-obligation, free case evaluation.

Disclaimer : The information provided is general and not for legal advice. The blogs are not intended to provide legal counsel and no attorney-client relationship is created nor intended.