When Is a Forced Resignation OK in PA?

It is against the law for employers to force injured workers out of their jobs because they suffered a work injury and are pursuing workers’ compensation benefits. In Pennsylvania, workers’ compensation provides both wage loss benefits and medical expenses to injured workers. There is no fault with workers’ compensation benefits, and the benefits are provided to help injured workers who need to be out of work to recuperate, if possible.

Some employers may try to force out or terminate an injured worker for what amounts to “monetary” reasons. These could include replacing the worker rather than waiting for them to recover, avoiding paying workers’ compensation benefits, not accommodating medically based restrictions, and avoiding paying unemployment benefits. If an employee voluntarily resigns, they are not eligible for unemployment benefits and, furthermore, cannot pursue any wrongful termination lawsuit against their former employer.

Many times, when a compensation settlement agreement — also known as a Compromise and Release Agreement — is negotiated, the employer, through the workers’ compensation carrier, will insist on the injured worker’s resignation. These Resignation Letters in Pennsylvania have been upheld as enforceable. Some reasons why employers want Resignation Letters with a lump sum settlement are:

• They do not want the employee coming back to work and discussing the settlement with any co-workers
• They do not want to give a lump sum amount of money and then have the employee come back and earn paychecks
• They do not want the liability that the injured worker might re-injure themselves again on the job

Workers’ compensation benefits are governed by the Pennsylvania Workers’ Compensation Act, and under that law, employers are not allowed to retaliate against injured workers simply because they are injured. If you or someone you know has suffered a work injury and has been treated wrongly in any way, you need to consult an experienced Pennsylvania Workers’ Compensation Lawyer to understand your rights.