Can you be fired while on workers’ comp in Illinois?

On Behalf of | Aug 20, 2025 | Workers' Compensation

One of the many concerns of people applying for or already receiving workers’ compensation benefits is that they will lose their job. Unfortunately, some employers even tell employees that if they apply for workers’ comp and take necessary time off, that could or will happen.

There’s a lot of misinformation out there. That’s why it’s crucial for employees to know their rights.

What does Illinois law say?

The Illinois Workers’ Compensation Act (IWCA) states that it’s illegal for an employer to “discriminate, attempt to discriminate, or threaten to discriminate against an employee in any way because of his or her exercise of the rights or remedies granted to him or her by this Act.” Further, “It shall be unlawful for any employer…to discharge or to threaten to discharge, or to refuse to rehire or recall to active service in a suitable capacity an employee because of the exercise of his or her rights or remedies granted to him or her by this Act.”

This means an employee can’t legally be terminated because they’ve suffered a workplace injury or illness and sought benefits to which they’re entitled. That’s considered retaliation, which is an illegal reason to terminate, demote or otherwise take negative action against an employee.

Why an employee could still legally be terminated

That doesn’t mean a person who’s receiving workers’ comp and possibly can’t work for a time can’t be terminated for other reasons, as long as those reasons are legal. Illinois is an “at-will” state. That means employers can terminate employees for any reason, as long as it’s not an illegal one – like retaliation or discrimination. 

For example, if a company lays off employees due to budget cuts, those receiving workers’ comp aren’t exempt from that layoff. Further, if it’s discovered while an employee is out that they’ve been guilty of serious wrongdoing, like fraud or theft, they could still be fired for that.

Employers are typically advised to be extra cautious in terminating an employee getting workers’ comp to avoid even the appearance of retaliation. For example, if they fire an employee for performance issues, there needs to be a documented history of these issues and the steps taken to help them improve their performance. 

Employees have rights under the federal Americans with Disabilities Act (ADA) and the Family Medical Leave Act (FMLA) that may come into play in addition to the IWCA. Anyone who believes they were illegally terminated because they sought workers’ comp benefits can benefit from experienced legal guidance to protect their rights.



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