By Law Office of Aili Obandja
An employer may sometimes terminate an employee who has a pending Vermont workers’ compensation claim or is receiving benefits, but it may not fire or discriminate against the employee because the employee asserted or attempted to assert the claim. Receiving benefits alone does not guarantee that the job will remain open indefinitely.
A legitimate layoff, misconduct that the employer honestly relies on, or another independent, nonretaliatory reason may support a lawful termination. A stated reason that is not the employer’s real reason may raise a retaliation issue.
Important: Family-and-medical-leave and disability laws may provide separate job protections depending on the facts.
Vermont Law Prohibits Workers’ Compensation Retaliation
Under 21 V.S.A. § 710, an employer may not discharge or discriminate against an employee because the employee asserted or attempted to assert a claim for workers’ compensation benefits. The statute also protects certain complaints, reports, testimony, assistance, and cooperation involving violations of Vermont’s workers’ compensation law.
The Vermont Supreme Court recognized a private right of action for workers’ compensation retaliation in Murray v. St. Michael’s College, 164 Vt. 205, 667 A.2d 294 (1995). The Court explained that workers must be able to exercise their statutory rights without reprisal.
Protection is not limited to the final act of termination. Depending on the circumstances, prohibited discrimination may include other adverse employment decisions taken because the worker asserted a claim.
A Workers’ Compensation Claim Does Not Prevent Every Termination
In Gauthier v. Keurig Green Mountain, Inc., 2015 VT 108, the Vermont Supreme Court considered whether an employer’s stated reason for firing an employee was a pretext for workers’ compensation retaliation. The Court emphasized that the law targets retaliatory intent, not every adverse decision that occurs after a claim. An employer may defend a termination by identifying a legitimate, nonretaliatory reason that it honestly believed.
More recently, Westcott v. Mack Molding Co., Inc., 2024 VT 85, reaffirmed that workers’ compensation law protects specified activity but does not convert every workplace dispute or employee action into protected conduct.
What May Suggest Retaliation?
A retaliation claim generally examines whether the worker engaged in protected activity, whether the employer knew about it, whether the worker experienced an adverse employment action, and whether there was a causal connection between the protected activity and the adverse action. If the employer gives a legitimate reason, the worker may need evidence that the stated reason was a pretext for retaliation.
No single fact necessarily proves retaliation. Relevant circumstances may include:
Negative treatment beginning soon after the injury report or claim;
Statements criticizing the employee for filing or pursuing the claim;
Pressure to withdraw the claim or return before medical release;
Sudden discipline that is inconsistent with prior evaluations or workplace practice;
Different treatment of employees who engaged in similar conduct but did not file claims;
Shifting or inconsistent explanations for termination; or
Evidence that the stated reason is not the employer’s real reason.
Timing may help establish a connection between protected activity and an adverse decision, but timing alone may not ultimately prove that the employer’s explanation was pretextual.
Job Protection May Come From Laws Outside Workers’ Compensation
Depending on the facts, separate employment laws may provide additional protection:
Vermont Parental and Family Leave: A qualifying employee’s work injury may constitute a serious health condition and support unpaid, job-protected leave under 21 V.S.A. § 472.
Federal Family and Medical Leave Act: An eligible employee may qualify for up to 12 workweeks of job-protected leave. A workers’ compensation absence may run concurrently with FMLA leave when both laws apply. 29 U.S.C. § 2612.
Disability discrimination and reasonable accommodation: A qualifying disability may require consideration of accommodations such as job restructuring, a modified schedule, or additional leave, unless the accommodation would impose an undue hardship. 21 V.S.A. §§ 495 and 495d; 42 U.S.C. § 12112.
These laws are separate from Vermont workers’ compensation and have their own coverage, eligibility, notice, and deadline requirements. Protected leave also does not prevent a termination or layoff that would have occurred for an unrelated reason. If you need advice about family-and-medical leave, disability discrimination, reasonable accommodation, or wrongful termination, consult an employment-law attorney.
What Should You Do If Your Job Is Threatened?
Ask for the reason in writing. Preserve termination notices, disciplinary records, performance evaluations, attendance records, and applicable workplace policies.
Save claim-related communications. Keep emails, text messages, voicemails, and notes concerning the injury, workers’ compensation claim, medical leave, restrictions, and return to work.
Document the timeline. Record when the employer learned of the injury or claim, when treatment or leave began, and when workplace treatment changed.
Keep your restrictions current. Provide accurate medical documentation through the appropriate process and keep copies.
Request leave or accommodation clearly. Do not assume that a workers’ compensation claim automatically serves as a request under another law.
Continue following lawful workplace rules. A pending claim does not excuse unrelated misconduct or policy violations.
Seek legal guidance promptly. Workers’ compensation, retaliation, leave, and disability-discrimination issues may involve different procedures and deadlines.
Does Termination Automatically End Workers’ Compensation Benefits?
Not necessarily. Ending the employment relationship and ending workers’ compensation benefits are separate actions. Whether benefits continue depends on the accepted claim, medical evidence, work capacity, earnings, and the procedures governing the particular benefit.
A termination may affect wage-loss issues, especially if the carrier argues that lost earnings result from the termination rather than the work injury. Do not assume either that benefits automatically stop or that they must continue unchanged. Review any denial or discontinuance notice carefully.
Get Help Understanding How Termination May Affect Your Workers’ Compensation Claim
The Law Office of Aili Obandja represents injured workers in Vermont workers’ compensation matters and can review how a termination may affect the workers’ compensation claim. Call 802-556-3582 to discuss your claim and the next steps that may be available.
This blog is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Employment, leave, disability, and workers’ compensation rights depend on the specific facts and applicable deadlines. Consult an attorney about your particular situation.
