If I offer modified work to an employee on workers' compensation, can the employee refuse the work because the employee does not like the job?

Yes, the employee can refuse. Employees are not required to accept modified work.

But there is a financial incentive for the employee to do so. The employee would receive at least 85 percent of their regular pay if they accept modified work.

You can find more information in the Offering a Modified or Alternate Position section of the HR Library.