Can You Receive a Workers’ Comp Settlement and Still Work in California?

Workers compensation injury

If you have suffered a workplace injury in California, you may be entitled to workers’ compensation benefits, including a settlement for your injuries. However, many injured workers wonder: “Can I receive a workers’ comp settlement and still work in California?” The short answer is yes—but there are important factors to consider. Understanding your rights and limitations can help you avoid jeopardizing your benefits while ensuring you remain financially stable.

Understanding Workers’ Compensation Settlements in California

Workers’ compensation settlements in California generally come in two forms:

  1. Stipulated Findings and Award – This type of settlement keeps your case open for future medical care. You receive periodic payments, and you may be able to return to work depending on your medical condition and employer accommodations.
  2. Compromise and Release (C&R) – With this type of settlement, you receive a lump sum payment but typically give up your right to future medical benefits for your injury. A C&R settlement is final, meaning you must plan carefully before accepting it.

Can You Work While Receiving a Workers’ Comp Settlement?

Yes, you can work while receiving a workers’ comp settlement, but your ability to do so depends on several factors:

1. Type of Settlement

  • If you have a Stipulated Findings and Award, you may continue working, provided that your work does not worsen your injury and complies with medical restrictions.
  • If you have a Compromise and Release, you are free to work, but you must consider whether your new job might impact future disability benefits or raise concerns about the validity of your injury claim.

2. Work Restrictions and Medical Clearance

Your doctor will provide work restrictions based on your injury. If you return to work, it must be within these limitations. Taking on work that exceeds your medical restrictions could result in further injury and may affect your eligibility for disability benefits.

3. Permanent Disability Considerations

If your injury resulted in a permanent disability rating, you might receive ongoing payments even if you return to work. However, if your earnings increase significantly, it could impact the amount of disability benefits you receive.

What Types of Work Are Safe After a Settlement?

If you are considering returning to work after a settlement, here are a few options:

  • Modified or Light-Duty Work: Some employers offer modified work based on your limitations. This can be a good way to stay employed while adhering to your medical restrictions.
  • Part-Time Employment: Working fewer hours can help you ease back into the workforce without overexerting yourself.
  • Self-Employment or Freelancing: Many injured workers transition into flexible jobs, such as consulting, online work, or running a small business.

How Working Can Impact Future Benefits

1. Vocational Rehabilitation and Job Retraining

If your previous job is no longer an option due to your injury, California workers’ compensation may provide vocational retraining through the Supplemental Job Displacement Benefit (SJDB). This benefit can help you gain new skills for a job within your capabilities.

2. Social Security Disability and Workers’ Compensation Offsets

If you receive Social Security Disability Insurance (SSDI) in addition to workers’ compensation benefits, your earnings could reduce your SSDI payments. It’s essential to consult with an attorney to understand how your income might affect your benefits.

Protecting Yourself While Working After a Settlement

To avoid complications, keep these best practices in mind:

  • Follow Medical Advice: Never exceed your doctor’s recommended work restrictions.
  • Disclose Your Work Status: Be transparent about your work situation with your employer and insurance company.
  • Avoid Suspicion of Fraud: Returning to physically demanding work while claiming a disability could raise red flags and put your settlement at risk.
  • Consult a Workers’ Comp Attorney: Before making any decisions about working after a settlement, seek legal advice to protect your rights.

Get Expert Legal Advice from Laguna Law Firm

If you’re unsure whether returning to work will affect your workers’ compensation settlement, the experienced attorneys at Laguna Law Firm can help. We specialize in California workers’ compensation cases and can guide you through your legal options while ensuring you receive the maximum benefits you deserve.

Call us today at (949) 594-2090 or visit lagunalawfirm.com to schedule a free consultation. Let us help you navigate the complexities of workers’ compensation so you can focus on your recovery and future employment.

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