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Occupational Safety and Health

Retaliation for filing workers’ compensation claims

In 1973, Indiana recognized that discharge in retaliation for filing a workers’ compensation claim is actionable under a theory of retaliatory discharge in violation of public policy.  Frampton v. Cent. Indiana Gas Co., 260 Ind. 249, 297 N.E.2d 425 (1973).  In fact, this was one of the early common law wrongful discharge cases.  At this point, virtually every state allows injured workers to sue if they are discharged for filing a workers’ compensation claim. 

The more difficult questions are these:  Do these causes of action cover situations in which the retaliation occurs before the filing of a claim?  Do they cover failure to reinstate someone after s/he recovers from an injury?  Do they cover retaliation which stops short of actual discharge?  In many states, a decision to terminate someone who is off work and collecting workers’ compensation benefits is not considered retaliatory if it is consistent with the employer’s general policies regarding absences.  This gets more complicated as one delves into the intersection of the Family and Medical Leave Act (guaranteeing reinstatement to qualified employees after up to 12 weeks of leave) and the Americans with Disabilities Act (requiring employers to provide reasonable accommodate to workers who can return to work). These issues are explored later in this course.

But note the limitations of this potential cause of action for injured workers: