Can You Work While On Workers' Comp?

Whether you’re considering going back to your old job with restrictions, starting light-duty work, or even taking on a part-time gig, we’ve got the answers you need when it comes to working on Workers' Comp. Let’s dive in.

Are You Allowed to Work While on Workers’ Comp?

Yes, you can work while on workers' comp—but you need to be smart about it.

A lot of people think workers’ comp means staying home and not working at all. That’s not true. The system actually encourages injured workers to get back on the job if they can—whether in a modified role, light duty, or even a different job.

That said, don’t rush back without a plan. Your ability to work depends on:

• Your doctor’s clearance—they might allow light duty with restrictions (like no heavy lifting).
• Your employer’s flexibility—if they can adjust your job, you can keep working while still getting benefits.
• Your earning capacity—if you take a lower-paying job due to your injury, you might qualify for reduced earnings benefits (more on that later).

If you’ve got a permanent injury to a limb—like an arm, leg, hand, or foot—you might qualify for a Schedule Loss of Use (SLU) award, which is a one-time payout based on how much function you’ve lost.

A doctor gives your injury a percentage rating, which determines how much you get. For example:

• If your doctor says you have a 15% loss of use in your arm, your SLU award is based on that percentage.
• Whether you’re working or not doesn’t change the value of your case.

Some people think staying out of work increases their payout, but that’s not how it works. Your award is based on your injury, not time off. In fact, the longer you’re out, the more workers’ comp deducts from your final payout for benefits they’ve already paid.

If your employer can offer light duty or a modified role, getting back to work could put more money in your pocket. But before making any moves, talk to a workers’ comp attorney to make sure you’re not leaving money on the table.

How Returning to Work Affects Your Benefits

Going back to work while on workers’ comp isn’t just about whether you can work—it also affects the benefits you’re getting. Here’s what you need to know.

Medical Benefits – Do You Still Get Treatment?

Yep! Going back to work doesn’t mean you lose your medical coverage.

Workers’ comp still covers your doctor visits, physical therapy, surgery, medication, and any other approved treatments related to your injury. Whether you’re working or not, your doctor stays in charge of your care.

The only thing that might change? Scheduling. If you’re back at work, you may need to fit appointments around your hours—but many doctors and physical therapy offices offer extended hours to help with that.

Temporary Disability Payments – Will They Stop?

It depends on your situation:

• If you’re back at full capacity, earning the same as before, your temporary disability payments will stop. Workers’ comp only covers lost wages, so if you’re making the same amount, there’s nothing to replace.
• If you’re back at work but earning less because of your injury, you may qualify for reduced earnings benefits.

Reduced Earnings Benefits – What If You’re Making Less?

‍If your injury limits how much you can work (fewer hours, lighter duties, or lower pay), workers’ comp may help make up the difference with reduced earnings benefits.Here’s how that works:

• Workers’ comp pays two-thirds of the gap between what you used to make and what you make now.
• Example: If you were earning $1,200 per week before and now only make $600, workers’ comp could cover two-thirds of that $600 difference—which means $400 per week in benefits.

Permanent Benefits – What Happens Long-Term?

‍If your injury is classified as permanent, your work status still plays a role:

• For scheduled injuries (arms, legs, hands, feet, etc.), your SLU award is fixed, meaning going back to work won’t change the amount you get.
• For non-scheduled injuries (head, neck, back, or internal issues), benefits are tied to your earning ability. If you’re earning your full salary again, you may not get ongoing payments.

What Kind of Work Can You Do While on Workers’ Comp?

If your doctor clears you, you can go back to work—as long as it fits within your medical restrictions. But not every type of work is treated the same, and some jobs can impact your benefits more than others.

Going Back to Your Old Job with Modifications

If your employer can adjust your duties to match your doctor’s orders, you might be able to return with lighter tasks, shorter hours, or a desk job. This lets you keep earning a paycheck while still receiving medical benefits.

Taking a Different Job While on Workers’ Comp

If your employer can’t accommodate your restrictions, you might find a new job that better suits your condition. That’s allowed, but you must report your earnings to the workers’ comp insurance carrier.

If you’re earning less than before your injury, you may still qualify for reduced earnings benefits to help cover the difference. But if you don’t disclose your new income, you could face fraud accusations.

Gig Work, Side Hustles, and Self-Employment

Side gigs like Uber, DoorDash, or freelance work can complicate things. Passive income from investments or rental properties is usually fine, but actively working for extra money could impact your benefits. If your side hustle earns more than your old job, your wage loss benefits will likely stop.

To avoid issues, always report any work or income to your lawyer and insurance carrier.

Can You Volunteer?

Even unpaid work can raise red flags. If you claim you can’t lift at work but are seen lifting boxes at a food bank, it could hurt your case.

How to Avoid Being Accused of Fraud While Working on Workers' Comp

If there’s one rule to follow, it’s this: Be upfront, be honest, and don’t try to hide anything. Even an honest mistake can look like fraud if you’re not careful.

Always Report Any Work or Income

If you start working—full-time, part-time, freelance, or a side gig—you must report it to:

• Your workers’ comp insurance carrier
• Your employer (if they’re still involved)
• Your attorney (if you have one)

It doesn’t matter if the job is completely different, only a few hours a week, or paid in cash—if you’re earning money, they need to know.

Be Honest About Your Physical Abilities

‍Insurance companies watch closely for any signs you’re doing more than you should. If your doctor says no heavy lifting, don’t get caught moving furniture or doing physical labor.Red flags that can get you accused of fraud:

• Posting photos or videos doing things outside your restrictions
• Taking a second job that requires more physical effort than you claim you can handle
• Doing unreported side jobs, like fixing up rental properties
• Getting caught on surveillance contradicting your injury claim

Even if you feel good one day, stick to your restrictions—workers’ comp is always looking for reasons to cut off benefits.‍

Know the Risks of Getting Caught

‍If workers’ comp finds out you misrepresented your injury or didn’t report income, you could:

• Lose all your benefits
• Be forced to pay back what you’ve already received
• Face criminal charges in serious cases

Not worth it. If you’re unsure about something, ask your lawyer first.

What About Passive Income?

‍Rental properties, stock dividends, and investments usually don’t affect your benefits—but if you’re actively managing a business or doing any work to generate income, it could count as working.

Can You Settle While You’re Working?

Yes—but the type of settlement matters.

• A lump-sum settlement means you get paid all at once, but your case closes completely—no more benefits.
• A stipulation agreement lets you keep getting benefits, but on agreed terms.

If you’re earning the same as before, a lump sum might make sense. But if you’re earning less due to your injury, be careful—settling too soon could cost you money in lost benefits.

How Does Working Affect Your Settlement?

Your work status directly impacts what you’ll get:

• If you can’t work at all, your case is worth more because you qualify for lost wages.
• If you’re working but making less, you may still get partial wage replacement, which affects negotiations.
• If you’re back at full pay, workers’ comp may argue you don’t have a wage loss, lowering your payout.

What If Your Employer is Pressuring You to Come Back?

Some employers try to rush injured workers back before they’re ready. If your doctor hasn’t cleared you or your job doesn’t fit your restrictions, you don’t have to go back. If you feel pressured, document everything and talk to a lawyer.

Will Your Job Be There When You’re Ready?

Workers’ comp doesn’t require employers to hold your job forever. If you’ve been out for a while, your position may not be waiting. However, if you can still do the job with reasonable accommodations, your employer may have to adjust the role under disability laws.

Thinking About Long-Term Disability?

If you’re considering Social Security Disability (SSDI), going back to work could hurt your case. SSDI is based on your ability to work, so a full-time job may weaken your claim.

Contact Us For Help With Your Workers' Compensation Case

If you have questions about your workers’ comp case, your rights, or how working might affect your benefits, I’m here to help.

Give me, Rex Zachofsky, a call at 212-406-8989, and let’s talk about your situation. Whether you just need a little guidance or full legal representation, I’m happy to walk you through your options—no pressure, no obligation.