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It is illegal to discharge, threaten or discriminate against an employee because they received an award from, filed or intends to file a workers’ compensation claim.1
If you demote or transfer an employee because they filed or intends to file a claim or received a workers’ compensation award, the action constitutes unlawful discrimination. If you are found to have violated the law, you face financial penalties of up to $10,000. Further, you may be required to reinstate the employee and reimburse employees for lost wages and benefits. Because it is difficult to answer a discrimination charge, you should not take any adverse action against an employee who is on workers’ compensation without substantial written evidence of a job-related reason for discharging, demoting or transferring that employee. For more information, see Workers’ Compensation.
1. Lab. Code sec. 132(a)