Fired While on Workers Comp Colorado: The Legal Reality

Fast Answers: Can I Be Fired While on Workers’ Comp in Colorado?

If you’re an injured worker in Colorado reading this, you’re probably scared. You reported your injury, had to file a workers' compensation claim, and now you’re wondering if your job is safe. That fear is completely understandable—and more common than you might think. Understanding the process of filing a workers compensation claim and your rights is crucial in this situation.

Yes, you can be fired while on workers comp in Colorado, but you cannot be legally fired in retaliation for filing a claim.

Here’s what you need to know right now:

• Colorado is an at will employment state, which means employers can generally fire employees at any time for almost any reason—or no reason at all. However, Colorado law recognizes a public policy exception to at-will employment, allowing employees to sue for retaliatory discharge if they can prove their firing was motivated by the filing of a workers' compensation claim.

• However, employer retaliation for reporting a workplace injury or filing a workers comp claim is illegal under Colorado public policy and state law.

• Being fired does not automatically end your medical benefits or wage replacement benefits under workers compensation.

• Your workers compensation benefits are separate from your employment status—they can continue even if your job ends. However, filing a workers' compensation claim does not guarantee job security, even if your injury is work-related, and laws like the FMLA only provide temporary leave protection.

If you’ve been fired while on workers comp or fear termination is coming, don’t wait to get legal support. Call Johnston Law Firm, LLC at (719) 309-9484 or message us online for a free consultation about your workers compensation case. If you suspect illegal retaliation, you can also file a complaint with the Colorado Division of Workers' Compensation or the Colorado Department of Labor and Employment (colorado department).

Attorney Steve Johnston is a Pueblo-based Colorado workers compensation attorney who represents injured workers throughout Otero, Fremont, Custer, Huerfano, Las Animas, and Crowley Counties. His legal team understands what you’re facing and can provide guidance on protecting both your benefits and your rights.

Colorado Workers’ Compensation Basics: Your Rights After a Work Injury

Colorado operates a “no-fault” workers compensation system. This means that if you suffer a work related injury or work related illness, you’re entitled to benefits regardless of who caused the accident—whether the injury occurred in Pueblo, La Junta, Cañon City, or anywhere else in the state. After an injury, filing a workers compensation claim in Colorado involves notifying your employer of your on the job injury as soon as possible and submitting the required forms to begin the process of securing benefits.

Under the Colorado Workers Compensation Act and colorado workers compensation laws, employers with one or more employees must carry workers compensation insurance. This workers compensation insurance provides coverage for on the job injury and illnesses that happen at work.

Core Benefits an Injured Worker May Receive:

• Medical treatment: Your employer’s insurance company must pay for reasonable and necessary medical care related to your work injury, including doctor visits, surgery, physical therapy, prescriptions, and other treatment from an authorized medical provider.

• Temporary disability wage benefits: If your doctor takes you completely off work, you may receive temporary total disability (TTD) at approximately 66 2/3% of your average weekly wage. For the period of July 1, 2025, to June 30, 2026, the maximum Temporary Total Disability rate in Colorado is $1,396.85 per week. If you’re on light duty restrictions your employer cannot accommodate, you may receive temporary partial disability (TPD) for lost wages.

• Permanent disability benefits: If your injury leaves you with lasting impairment after reaching maximum medical improvement, you may be entitled to permanent partial or permanent total disability benefits.

The amount and duration of workers' compensation benefits in Colorado depend on various factors, including the nature of your injury and your ability to return to work. These benefits are designed to ensure fair compensation for injured workers.

These benefits are separate from job security. Your workers comp claim can continue even if the employment relationship ends. The law is designed to provide medical bills coverage and wage replacement regardless of your employment status.

Steve Johnston’s practice at Johnston Law Firm, LLC also covers personal injury, automobile accidents, social security law, estate planning, and criminal law. This matters because a serious work injury often triggers multiple legal issues—a car accident on the job, questions about social security disability, or concerns about providing for your family if you can’t return to work.

The Legal Reality: At-Will Employment and Workers’ Comp in Colorado

Understanding employment at will is critical for any injured employee in Colorado.

Colorado is an at-will employment state, which means your employer can legally terminate your employment at any time, for almost any reason—or for no stated reason at all—as long as the reason is not illegal. However, there are exceptions to this rule. For example, an employment contract can provide additional job security and may outline specific protections or procedures that must be followed before termination.

Employers are prohibited from retaliating against employees for filing a workers' compensation claim. If an employee has filed a workers' compensation claim, employers must provide valid reasons for termination and cannot use the claim itself as a reason for firing.

At-Will Rules Still Apply Even If You:

• Have filed a workers compensation claim

• Are currently receiving workers compensation benefits

• Are on light duty or completely off work due to your injury

• Have work restrictions from your medical provider

The critical legal line is retaliation. Under C.R.S. § 8-43-408, employers cannot fire you because you reported a work related injury or exercised your legal rights to workers compensation benefits. This protection stems from Colorado public policy that prohibits punishing workers for using the workers comp system.

Colorado courts have consistently recognized that firing someone for pursuing workers compensation benefits violates public policy. Cases like Lathrop v. Tobin-Hamilin Elec., Inc. confirm that while there’s no absolute job protection, retaliation for exercising workers comp rights can form the basis of a wrongful termination claim.

A Quick Example:

Imagine a Pueblo warehouse worker who suffered a back injury in early 2024. He reported the injury, filed his claim, and began receiving TTD benefits while recovering. Three weeks later, his employer terminates him citing “restructuring”—even though no other positions were eliminated and emails show management complaining about the claim’s cost.

That’s potentially illegal retaliation. The timing, the lack of legitimate business justification, and the evidence of hostility toward the claim could support a wrongful termination lawsuit.

If you’re in southern Colorado and believe your termination was connected to your work injury, call (719) 309-9484 or message us online for a free case review.

What Counts as Illegal Retaliation for a Workers’ Comp Claim?

Retaliation means any adverse employment action taken because an employee reported an injury, sought medical treatment, or filed a workers compensation claim. It’s about the reason behind the action, not just the action itself. Laws like the Americans with Disabilities Act (ADA) provide an additional layer of protection, making it illegal to terminate an employee due to a disability or for exercising their rights related to a workplace injury.

Potential Retaliatory Actions Include:

• Firing or laying off an injured worker shortly after reporting a work injury with no other credible explanation

• Cutting hours, demoting the worker, or reassigning to undesirable shifts solely because of the claim

• Harassment, threats, or pressuring the employee to drop or not file a claim

• Creating impossible performance standards after the injury as a pretext for termination

• Sudden negative performance reviews when prior reviews were positive

• Excluding the worker from meetings, projects, or opportunities available to others

Evidence That May Support a Retaliation Claim:

Document everything. Write down dates, conversations, names of supervisors, and keep copies of all emails, text messages, and write-ups. This evidence can be crucial if you need to prove your termination was retaliatory.

Retaliation cases are highly fact-specific. A worker in a small shop in Walsenburg or rural Otero County has the same legal protections under colorado law as someone employed by a large company in Denver or Colorado Springs.

If you suspect your employer is retaliating against you—or you’ve already been fired under suspicious circumstances—consult a lawyer early. Call Steve Johnston at (719) 309-9484 or message us online 24/7 for a free consultation.

When Can You Legally Be Fired While on Workers’ Comp in Colorado?

Workers compensation does not freeze your employment status. Your employer can still make legitimate business decisions, as long as those decisions aren’t retaliatory or based on illegal discrimination.

Legally Permissible Reasons for Termination During a Workers Comp Claim:

• Company-wide layoffs: Plant closures, department downsizing, or restructuring unrelated to your injury

• Serious misconduct: Theft, violence, falsifying company documents, or substance abuse violations

• Pre-existing performance issues: Problems documented before the injury occurred

• Policy violations: Breaking written company rules (attendance, safety, time reporting) that are enforced consistently for all employees

• Inability to perform essential functions: If you cannot return to your job duties and no reasonable accommodation exists

The employer does not have to hold your position open indefinitely if you cannot return to essential duties. However, they cannot use this as a pretext to simply “get rid of” injured workers who file claims.

Contrast: Legal vs. Illegal Reasons

Even if termination is lawful, your workers comp benefits may continue. The insurance company may still owe ongoing medical treatment and, in many cases, continuing wage-loss benefits.

Example:

A Cañon City worker was terminated in 2025 for time-clock fraud—clocking in when not actually at work—while still receiving workers comp benefits for an unrelated shoulder injury. The termination might be legal because the misconduct was documented and applied consistently. However, the workers compensation claim could continue because the fraud had nothing to do with the work injury.

Fired While Still Treating or on Light Duty: What Happens to Your Benefits?

Here’s reassuring news: being fired does not automatically cancel your Colorado workers compensation claim.

Your benefits are tied to your injury, not your employment status. The process continues even after termination.

What Typically Happens to Your Benefits:

Medical benefits: These continue as long as your authorized treating physician says care is reasonable, necessary, and related to your work injury. The insurance company cannot simply cut off your medical treatment because you lost your job.

Temporary total disability (TTD): If you are still under work restrictions that prevent you from working, TTD may continue after termination. The insurer cannot end TTD simply because you were fired—they must follow strict rules under Colorado Division of Workers’ Compensation regulations.

Temporary partial disability (TPD): These wage replacement benefits may adjust based on your post-termination earnings or job search efforts. If you find new work at lower pay due to your restrictions, TPD may help bridge the gap.

Light Duty Scenarios:

• If you were on light duty and legitimately fired for reasons unrelated to your restrictions, wage benefits may change but typically don’t vanish entirely.

• If your employer uses light duty to harass you, set you up to fail, or create impossible conditions, that conduct may support a retaliation claim.

• Never refuse suitable light duty work without first getting legal advice—that decision can severely impact your lost wage benefits.

You may also be able to apply for Colorado unemployment benefits if you were released to light or full duty and fired for non-misconduct reasons. However, unemployment can interact with TTD and TPD in complex ways.

After any termination, suspension, or major change in work status, contact Johnston Law Firm, LLC promptly so benefit issues can be addressed quickly. Early action protects your rights.

Could You Have a Wrongful Termination Claim in Addition to Workers’ Comp?

In some cases, an injured worker may have two separate legal matters running simultaneously:

1. A workers compensation claim for medical care and wage-loss benefits

2. A wrongful termination claim (also called a retaliation claim) for being fired due to exercising your workers comp rights

These are distinct legal processes with different remedies.

Factors That May Suggest a Wrongful Termination Claim:

• Firing occurred shortly after an injury report, with no prior discipline history

• Employer made comments like “we don’t keep injured workers” or “this claim is costing too much”

• You were treated differently than uninjured employees who made similar mistakes

• Your employer demanded you “delay” or “not file” a claim and threatened you when you refused

• The stated reason for termination doesn’t match the facts or timeline

Colorado courts, including in cases like Lathrop v. Entenmann’s, Inc., have recognized that firing someone for pursuing workers compensation benefits violates Colorado public policy and can give rise to a civil rights action for wrongful termination.

Potential Damages Beyond Workers Comp:

Successful wrongful termination suits in Colorado can result in awards ranging from $50,000 to $200,000 or more, depending on the facts.

These cases are complex, time-sensitive, and evidence-driven. Colorado has statutes of limitations that can bar claims if you wait too long. Injured workers in Pueblo, Otero County, Fremont County, and surrounding areas should consult counsel quickly.

Call (719) 309-9484 or message us online for a free evaluation of both your workers comp claim and potential wrongful termination aspects. The legal team at Johnston Law Firm, LLC can assess your complete situation.

Practical Steps to Protect Yourself If You’re Afraid of Being Fired

Preparation and documentation are critical from the moment your injury occurred. If you sense tension at work after filing a workers comp claim, take these steps immediately.

Specific Actions Every Colorado Worker Should Take:

• Report your injury in writing to your supervisor or HR as soon as possible. Keep a personal copy of everything you submit.

• Follow all medical instructions and attend every scheduled appointment with your medical provider. Missing appointments can hurt both your health and your claim.

• Build a personal file containing pay stubs, doctor’s restrictions, light duty offers, performance reviews, write-ups, and any termination documents.

• Avoid social media posts about your injury, your employer, or your case. Insurance companies and defense lawyers monitor these platforms.

• Document hostile meetings immediately. If a conversation feels threatening, write down who was present, exactly what was said, and the date and time. Do this as soon as possible while details are fresh.

• Request everything in writing. If your employer offers modified duty or makes demands, ask them to put it in writing.

Workers in smaller communities—Walsenburg, Trinidad, rural Otero County, or remote parts of Crowley County—often know supervisors personally. Even so, you should still document everything. Personal relationships don’t prevent retaliation, and documentation protects you regardless of workplace dynamics.

Critical Warning:

Do not sign severance agreements, resignation letters, settlement documents, or any paperwork related to your employment or workers comp claim without having an attorney review them first. These documents often contain waivers that can destroy your legal rights.

Consider getting legal advice even before a firing occurs if you sense trouble brewing. Prevention and strategy are often more effective than repair after the fact.

Johnston Law Firm, LLC can review documents and advise on next steps at no initial cost to you.

How a Pueblo-Based Colorado Workers’ Compensation Attorney Can Help

Johnston Law Firm, LLC, led by attorney Steve Johnston, focuses on protecting injured workers throughout Colorado. Based in Pueblo, Steve represents workers from across the region who need experienced legal support after a work injury and job loss.

Concrete Ways the Firm Can Assist:

• Evaluate your termination: Determine whether your firing or demotion is likely lawful or retaliatory under colorado law.

• Protect ongoing benefits: Make sure the insurance company continues paying appropriate medical benefits and lost wages after a termination. Challenge improper benefit denials or delays.

• Coordinate related legal issues: Handle automobile accidents that caused the work injury, third-party claims against equipment manufacturers, or overlapping social security disability questions.

• Represent you in proceedings: Appear on your behalf in hearings before the Colorado Division of Workers’ Compensation and negotiate with insurance adjusters and employer counsel.

• Pursue wrongful termination claims: File and litigate retaliation cases for additional damages beyond workers comp, including backpay, emotional distress, and punitive awards where appropriate.

The firm represents workers from Pueblo and Pueblo West to Otero, Fremont, Custer, Huerfano, Las Animas, Crowley, and other Colorado counties. Whether you’re injured on the job in La Junta, Canon City, Trinidad, or anywhere in between, Johnston Law Firm, LLC can help.

Steve Johnston’s practice also covers personal injury, automobile accidents, estate planning, criminal law, and social security law. This breadth matters because serious work injuries often create cascading legal problems—you might need help with a related car accident, disability benefits, or planning for your family’s financial future.

The firm offers free initial consultations and works on contingency for workers compensation and injury matters—meaning you pay no fee unless there’s a recovery.

Contact Johnston Law Firm, LLC: Get Answers About Being Fired on Workers’ Comp

Here’s the bottom line: you can be fired while on workers comp in Colorado, but you cannot be legally fired in retaliation for filing a claim. Your workers compensation benefits may continue even after job loss. Every situation requires a case-specific analysis by someone who knows colorado workers compensation laws.

Don’t wait. Colorado law imposes deadlines on both workers compensation claims and potential wrongful termination lawsuits. The longer you wait, the harder it becomes to gather evidence and protect your rights.

Take Action Now:

📞 Call Johnston Law Firm, LLC at (719) 309-9484 for a free, confidential consultation about your work injury, termination, or retaliation concerns.

💬 Send us a message us online through the firm’s contact form if you prefer not to call immediately. The firm responds quickly to all inquiries.

The firm serves clients throughout Colorado, including Pueblo, Otero, Fremont, Custer, Huerfano, Las Animas, Crowley, and neighboring counties. No matter where in southern Colorado your injury occurred, Steve Johnston and his legal team can help.

You do not have to face an employer or insurance company alone. An experienced Colorado workers compensation attorney can stand between you and further harm—protecting your benefits, your rights, and your future.