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Workers’ Comp Fraud Is Legitimate Reason to Fire

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in Compensation and Benefits,Firing,Human Resources

Q. While on unpaid leave, one of our staffers applied for and was granted workers' compensation. This person has not expressed any interest in returning to work. She may even be working for someone else. Can we terminate her? —A.L., New York

A. Terminating an employee on workers' comp leave is fraught with legal consequences. However, if you can confirm that the employee is working another job and is not reporting the income generated by that job, the employee will likely be barred from receiving benefits. Moreover, there's little doubt that workers' comp fraud constitutes a legitimate, nondiscriminatory reason for firing.

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