A workplace injury is never welcome news, but it’s a relief to know that monetary benefits are available through the state’s workers’ compensation system. Unlike an accident claim for personal injury, you do not need to prove a case of negligence for worker’s compensation. Simply put, you are entitled to benefits like medical expenses and disability payments as long as your injury occurred at your work site or during the course of your job duties.
It seems pretty straightforward, but what happens if your employer goes out of business? Will you continue to receive your payments?
Can I Still Receive Workers’ Compensation Benefits if the Company I worked for Closed?
Yes, you will still receive you worker’s compensation benefits if the company you work for closes for good. This is due to the fact that your employer is not directly responsible for making these payments. Workers’ compensation is a system that’s run by the state of California’s Department of Industrial Relations. This agency requires employers to pay into a worker’s compensation policy with a private insurance company. That policy will cover you for the full value of your benefits, even if your company is no longer in business.
If you are having trouble accessing your benefits from your employer’s insurance provider, please give us at our office. We can help straighten out any issues with your claim and ensure that you continue receiving the payments you are entitled to.
What if my Employer Stops Paying into their Worker’s Comp Insurance Policy?
We get this question a lot from injured workers, who are worried about interruptions to their workers’ compensation benefits. Their concern is understandable, since most forms of insurance coverage stop if you’re unable to pay the premiums. However, this is not the case with workers’ compensation benefits.
First, it’s important to understand that worker’s compensation is a state run system, and employers are required to obtain insurance coverage that’s in compliance with state laws. So it’s the insurance company that’s responsible for paying out your benefits, not your employer. Furthermore, they are legally required to pay you even if your employer shuts down the company or goes bankrupt.
In short, your workers’ compensation payments won’t stop because your employer is no longer paying into the policy. That should come as a relief if you are currently receiving payments for a workplace injury. But things are a bit more complicated if you’ve recently submitted a workers’ compensation claim.
What if I have a Pending Workers’ Compensation Claim?
When you sustain a workplace injury, your employer is required to submit information to the insurance company on your behalf. Information may be requested multiple times as an insurer investigates the details of your accident. If your employer has closed their doors, the insurance company may have problems obtaining the necessary information. Things become even more difficult if you and your employer had disagreements about your claim prior to the business closing down.
It’s easy to become discouraged in these situations, but please take some time to speak with one of our attorneys. We will advise you of your rights and do everything in our power to get you the benefits you need. Contact our office and schedule a consultation with a California employment law attorney.
How else can a Business Closure Affect my Worker’s Compensation Benefits?
Certain workers’ compensation benefits may be dependent on your ability to return to work. Thus, an insurance company must determine when and if you can resume your normal job duties. Obviously, this is difficult to do if your workplace has closed down.
Keep in mind that you cannot be denied benefits altogether due to questions over your ability to go back to work. However, issues may arise that can cause problems with your claim. We can help you resolve these issues, along with any other problems related to your workers’ compensation benefits.
Can I Sue the Company I Worked for for Workplace Injury after they Closed?
In general, employers have immunity against lawsuits involving a workplace injury. That means you are legally required to go through the state’s workers’ compensation system if you suffered a work-related injury. However, you may be able to sue your former employer if they denied your claim or stopped your benefits without a valid reason. In these situations, your employer may be acting in bad faith, which is a qualifying circumstance for a civil lawsuit.
There are a few other exceptions to an employer’s immunity against a lawsuit for workplace injury:
- You were injured as a result of negligence or misconduct by your employer.
- Your injury was exacerbated due to acts of bad faith by your employer (for ex, stall tactics to hold up the approval of your workers’ compensation claim).
- Your employer did not have insurance coverage as required by California’s workers’ compensation laws.
- Your injuries were caused by a power press with a removed machine guard, due to your employer knowingly removing or failing to install a machine guard.
- The cause of your accident was a defective product that was made by your employer, and the product was obtained from a source other than your employer.
We know that the laws regarding workers’ compensation rights can be complicated, but rest assured that we are here to guide you every step of the way. A Los Angeles work accident lawyer is waiting to speak with you, so don’t hesitate to give us a call.
Third Party Lawsuits in a Claim for Workers’ Compensation
Depending on how and where you were injured, you may be able to sue someone else other than your employer. For example, let’s say you are a delivery driver who had a slip and fall accident while you were bringing packages into a grocery store. You slipped on the floor because an employee at the store had just mopped up a spill, but didn’t put out a Wet floor sign. In this case, you may have grounds for a lawsuit against the store. You also qualify for workers’ compensation benefits, which you can receive while you are pursuing monetary damages from the grocery store.
If you believe third party negligence played a part in your accident, please give us a call right away. We can help you file an injury claim against the liable entity and make sure that you receive all the funds you are entitled to.
Speak to a California Worker’s Compensation Lawyer
While workers’ compensation is an employee’s right in the event of an injury, the claims process may not be as easy as you expected. That’s where the lawyers of Normandie can help, with our many years of experience in California labor dispute cases. Regardless of the complexities in your accident, we are confident in our ability to recover your benefits.
If you are worried about the cost of hiring an attorney, let us put your mind at ease with our Zero fee guarantee. This is a contingency agreement where you pay nothing upfront for our services. We only get paid by winning your case, and if we don’t win, you won’t have to pay back a single penny of our expenses.
To learn more about your rights and legal options, contact our law firm and schedule a free case review.
