Can I Start a New Job While Receiving Workers’ Compensation Benefits?

Legally Reviewed and Edited by: Terry L. Cochran

If you got hurt at work and you’re collecting benefits, after a while, you might be wondering, can I start a new job while receiving workers’ comp benefits? It’s natural to want to go back to work, or maybe you just really need the income.

But before you do, keep in mind that there are rules about workers’ comp and a new job. If you don’t go about things the right way, you could lose your benefits, or worse, get accused of fraud. Cochran, Kroll & Associates, P.C., can help you protect your rights if you want to get back into the workforce.

Understanding Workers’ Compensation Benefits

There are typically three categories of workers’ compensation benefits in Michigan. Those include medical benefits, which cover your doctor visits, surgeries, medications, and physical therapy. Then, wage loss benefits replace a portion of the income you lost during recovery. And last, there’s vocational rehab that helps you retrain for new work.

Most people don’t realize their benefits depend on their earnings capacity. So, if it looks like you can earn money somewhere else, you could lose part or all of your benefits.

Is It Legal to Start a New Job While on Workers’ Comp?

Yes, but it’s not that simple. You’re not banned from working while on workers’ comp in Michigan, but what gets looked at are your doctor’s restrictions and how much you’re earning.

It’s up to your treating physician to determine what you can physically handle, so if you’re cleared for light-duty work with restrictions, you can accept that kind of job. But if they say you’re totally disabled, you could get into a lot of legal trouble if you take any sort of job.

Insurance companies watch for this; they hire investigators and monitor your employment records. They even check your social media accounts.

Light-Duty vs. Full-Duty Work

Light duty means modified tasks that fit your medical restrictions, and your doctor’s written release needs to be specific about what you can and can’t do.

Full duty means you’re back to 100 percent with no restrictions, which also means you probably don’t qualify for any more wage loss benefits. You might keep getting medical coverage, but no more weekly checks.

How a New Job Can Affect Your Benefits

Starting a new job triggers benefit calculations that you need to be aware of. The attorneys at Cochran, Kroll & Associates, P.C. can help you figure all this out to protect your income.

Wage Loss Benefits

Michigan pays wage loss based on 80 percent of the difference between your old wages and what you can earn now. If you made $800 per week before you got hurt and now you’re totally disabled, you get about $640 per week.

Now, say you take a new job earning $400 per week. Your benefit drops to 80 percent of the $400 difference, which is $320 per week. Add your $400 earnings, and you’re at $720 total.

The insurer might argue that you’re capable of earning more than your new job pays, which is called earning capacity, and it’s a common battle with workers’ compensation cases.

Medical Benefits

You still get medical coverage for your work injury even if you get a new job, so if you need ongoing treatment, prescriptions, therapy, etc., those costs are still taken care of.

If you get hurt at your new job, that’s a separate claim with a different insurer. You can’t blend the two injuries or expect your old insurer to cover new problems.

Employer and Insurance Notification Requirements

Michigan law requires immediate notification if your work status or your earnings change, so you’ve got to let your insurance carrier know right away if you get a job.

Don’t wait, and definitely don’t try to hide, or you’ll find yourself in a lot of trouble. Most insurance policies include specific reporting deadlines, usually within seven days. Miss that deadline and you’re looking at benefit suspensions or fraud allegations.

Put it in writing. Send an email or a letter describing your new job, your pay, and your start date. Include a copy of your doctor’s work release and keep proof that you sent notice.

You’ve also got to notify your original employer, especially if they’ve been offering you light-duty work. Some companies have return-to-work workers’ compensation coordinators who handle these transitions.

Common Mistakes That Can Harm Your Claim

Taking a job without medical clearance is the biggest mistake you can make. The insurance company finds out, and they’ll say you’re not really injured.

Don’t underreport your earnings either. Maybe you pick up work that pays cash and think it doesn’t matter, but you’ve got to report every penny. Investigators have caught plenty of workers through tax records and social media posts.

And don’t work beyond your restrictions. If your doctor clears you for sedentary desk work, and you take a warehouse job lifting heavy boxes, you could reinjure yourself or make your original injury worse.

Michigan Workers’ Compensation Rules

Michigan’s Workers’ Disability Compensation Act oversees these situations. The law protects you if you get hurt on the job, but there are still strict compliance requirements.

Michigan uses a wage-loss system, not permanent disability ratings, meaning your benefits directly tie to your earning capacity. It’s meant to encourage you to go back to work since you’re usually better off working part-time plus reduced benefits.

If you got injured at work, and you’re thinking about getting a new job, talk to our team at Cochran, Kroll & Associates, P.C., so we can look at your medical restrictions and figure out how new earnings would affect your benefits, so you stay protected. Contact us today for a free consult.

We work on contingency, so we only get paid if we win your case. You can call us anytime, 24/7, at 1-866-MICH-LAW () to schedule your 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.