Can You Work Somewhere Else While on Workers' Comp?

If you’ve been injured on the job and filed a workers' compensation insurance claim, you may be wondering whether you are able to work at another job to make ends meet, replace lost income, or stay occupied. So, can you work a second job while under workers’ comp without losing eligibility for these benefits and avoid potential fraud charges at the same time? Knowing the answer can help you plan ahead in case you ever suffer from a workplace injury or work-related illness.

A local independent insurance agent can also help you get covered by the right workers' comp policy. They'll ensure you understand how your coverage works, too. But first, here's a guide to whether you can work at another company while covered under workers' comp benefits.

Table of Contents

• Can You Work Somewhere Else While on Workers' Compensation?
• What Kinds of Risks Could I Encounter by Working While Collecting Workers' Comp Benefits?
• Can You Receive Workers' Compensation Benefits for Two Jobs at the Same Time?
• Can an Injured Employee Return to Work While Under Workers' Comp?

Can You Work Somewhere Else While on Workers' Compensation?

Yes, individuals who have the ability to work are allowed to work at a second place of employment while receiving workers’ compensation for an injury that occurred at the primary place of employment. However, while medical benefits are portable, disability insurance benefits may be impacted by you working somewhere else. 

Though you should still be able to receive benefits to compensate for your medical bills and other expenses, disability benefits are unlikely to apply if you start working at a second job and make at least a similar wage or a greater wage. This would essentially cancel out the purpose of collecting those disability benefits from workers' comp.

What Kinds of Risks Could I Encounter by Working While Collecting Workers' Comp Benefits?

There are a few potential risks that can arise when working while covered by workers' comp. Consider the following before deciding to return to work.

1. Be sure that you are authorized to work according to your capacity so as not to cause further injuries. While many workers may wish to remain occupied and stay employed, exacerbating conditions that need to heal may make things worse. This could also potentially invalidate any future benefits should the condition worsen.
2. An employer who is paying for an employee’s injuries through workers’ compensation may be prompted to launch an investigation into the workers’ condition with the intent to reduce benefits or cease them entirely.
3. Your insurer may adjust your workers’ comp benefits proportionally to the amount of income you receive at the second job. 
4. Some types of employment while receiving workers’ compensation may not be approved and may result in an investigation into an employee’s allegedly fraudulent activities. Depending on the state where the fraud occurs, workers’ compensation fraud can lead not only to serious criminal charges of felonies and misdemeanors, but also to stiff financial penalties. 

Choosing to continue working a second job or finding a new job while receiving workers’ comp benefits is possible if the second job is less physically demanding. This means that an injured worker who is receiving workers’ compensation may be able to work a second job while being unable to work their primary job. That's because the second job is within the injured/disabled worker's current capabilities. If the injured worker were to start performing their primary job duties at their second job, that could cause an issue with workers' comp benefits and potentially lead to a fraud investigation.

As an example of how to make money while on workers' comp, a construction worker who got injured in an automobile accident and collects workers’ compensation benefits may choose an office job with their current employer that requires less demanding physical work without aggravating their injuries. 

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Can You Receive Workers' Compensation Benefits for Two Jobs at the Same Time?

Yes, workers’ compensation benefits may cover both jobs if you were already employed at a second, part-time job in addition to your primary job when you were injured. Depending on your ability to work at either job, you may be eligible to receive workers’ compensation benefits that completely or partially cover the loss of wages at the second job.

Bear in mind that there are specific requirements to qualify for workers’ compensation benefits for the loss of two sources of income. Any secondary income at the time of the workplace injury must be reported when filing your workers’ comp claim to receive benefits. Failure to do so can invalidate your claim or may be construed as an attempt to commit fraud. 

Again, an independent insurance agent is a great ally to help you navigate complex scenarios regarding workers’ compensation and multiple jobs. Considering that every state handles workers’ compensation claims in its own way, an independent insurance agent can inform you of your rights and the likelihood that you’ll receive the benefits that you’re entitled to.

Can an Injured Employee Return to Work While Under Workers' Comp?

If a worker is injured and cannot continue performing their typical job duties, most states allow them to continue working in whatever capacity they’re able to for their employers. If possible, employers can offer either a modified or an alternative position so employees can continue working at their current location. 

However, it’s important to understand that this change in position can come with reduced pay because it's not the same position. Workers’ comp provides indemnity benefits to make up for lost wages if the new position pays less, but this may only be a fraction of what the worker was originally earning. 

When an injured employee has fully recuperated or their condition doesn’t improve beyond a certain impairment rating decided by the state, they may be ready to return to their original work position and tasks. In this case, workers’ compensation benefits may be reduced or cease entirely. However, an employee whose wages are less because of the ongoing injury may still receive continuing workers’ compensation benefits.

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An Independent Insurance Agent Can Help You Understand Your Workers' Comp Benefits

Before deciding whether you should continue to work while receiving workers’ compensation benefits, consult an independent insurance agent. These agents can highlight potential risk factors and provide you with state-based guidelines on remaining employed while injured. 

Your agent can also explain your coverage eligibility based on the nature of the work, your overall payroll, and other factors. And when necessary, your agent can even help you file workers' comp claims.