Workers’ compensation provides financial relief for employees who suffer job-related injuries or illnesses. However, the long-term financial impacts of receiving these benefits can extend beyond immediate relief. They can also potentially influence future employment opportunities.
It is important for employees to understand the various ways these benefits can influence their job prospects in the future.
Workers’ compensation and future job prospects
Workers’ compensation benefits protect injured employees. Employers are not legally allowed to discriminate against workers for filing a claim. Nevertheless, the stigma associated with workplace injuries can still create hurdles.
Some employers may view individuals who have filed workers’ compensation claims as high-risk hires. They fear potential re-injury or additional claims. While you’re not required to disclose a previous workers’ compensation claim during the hiring process, questions about gaps in employment or medical history might indirectly affect your chances.
Potential limits on job options
For some workers, a job-related injury can result in permanent physical limitations. Even with workers’ compensation benefits, the injury can reshape their career path. Some injuries may prevent workers from returning to physically demanding roles. This forces them to seek new job opportunities in less physically demanding fields.
Workers’ compensation may cover vocational rehabilitation or retraining. This can help individuals adapt to new careers. However, starting a new career often comes with financial sacrifices.
Impact on future earnings
Receiving workers’ compensation can also affect an individual’s long-term earnings potential. Workers who experience injuries may find it difficult to return to their previous earning level, even after they recover. This leads to long-term financial setbacks.
In some cases, future earnings from new employment could be offset by workers’ compensation payments. This limits the overall financial benefits received from both sources.
Adapting to a changing financial landscape
Workers’ compensation provides essential financial support after an injury. However, it can have a long-term impact on employment and income. Navigating this challenge requires careful planning.