No. California law generally prohibits employers from firing, threatening, or discriminating against an employee for filing a workers’ compensation claim or expressing an intention to file one. The protection comes from California Labor Code Section 132a. However, employers rarely admit to retaliation, and terminations after workplace injuries frequently involve disputed facts and overlapping legal frameworks. Understanding your rights under both workers’ compensation law and California employment law is essential when navigating this situation.

The Core Protection: California Labor Code Section 132a

The primary statute protecting injured workers from retaliation is California Labor Code Section 132a. The statute declares it the policy of California that workers shall not be discriminated against in any manner because they have filed or expressed an intention to file a workers’ compensation claim. Discrimination under this provision is defined broadly and includes any retaliatory act or threat made against an employee for exercising their rights under the workers’ compensation system.

Section 132a expressly prohibits employers from firing or threatening to fire a worker for filing a claim, reducing pay or hours, demoting or reassigning the worker to less favorable duties, failing to rehire or reinstate an injured worker, and retaliating in any other manner. The statute also covers retaliation against employees who testify in another worker’s workers’ compensation case, and extends to workers’ compensation insurance carriers that advise or direct an employer to discharge an employee because of a claim.

To establish a violation, the worker must demonstrate three elements: that they filed or made known an intention to file a workers’ compensation claim before the adverse action occurred; that the employer took a retaliatory action against them; and that the employer’s action singled out the employee because of the claim. Once the worker establishes these elements by a preponderance of the evidence, the burden shifts to the employer to show a nondiscriminatory business reason for the action.

What Retaliation Can Look Like

Retaliation is not limited to termination. Courts and the Workers’ Compensation Appeals Board have recognized that Section 132a’s phrase “in any manner” sweeps broadly to cover a wide range of adverse employment actions. Retaliation may take the form of:

  • Sudden termination following the filing of a claim or report of an injury
  • Reduction in hours, pay, or benefits
  • Demotion or reassignment to less desirable duties or shifts
  • Hostile treatment, harassment, or exclusion from normal workplace activities
  • Unexplained negative performance reviews that did not exist before the injury
  • Refusal to allow a return to work under medically prescribed restrictions
  • Denial of opportunities routinely provided to other employees

The pattern of events surrounding the adverse action matters significantly. Timing alone does not prove retaliation, but a close connection between the date of the claim and the date of the adverse action is a factor courts and the WCAB regularly consider when evaluating whether the stated reason for termination is genuine or pretextual.

Can an Employer Ever Terminate an Injured Worker?

Yes. California is an at-will employment state, and employers may terminate employees for many legitimate reasons even when a workers’ compensation claim is pending. What the law prohibits is using the claim itself as the motivating reason for the adverse action. Common legitimate justifications employers assert include prior documented performance issues, violation of workplace policies, reduction in force or layoffs, and the employee’s inability to perform the essential functions of the job.

When an employer asserts a legitimate business reason, the key legal question becomes whether that reason is genuine or a pretext for retaliation. Shifting explanations, inconsistent treatment of other employees, sudden performance criticisms that never appeared before the injury, and the absence of any prior documentation of the issues cited all tend to support an inference of pretext. Courts look carefully at whether the employer’s conduct was consistent before and after the injury claim.

Remedies Under Labor Code Section 132a

When a Labor Code Section 132a violation is proven, the Workers’ Compensation Appeals Board may award:

  • Increased compensation of up to 50% of the benefits otherwise owed, with a maximum additional payment of $10,000
  • Costs up to $250
  • Reinstatement to the prior position if the worker is able to return
  • Reimbursement for lost wages and benefits caused by the retaliatory action

These remedies are specific to the Section 132a process at the WCAB. If the same facts also support a FEHA claim, the worker may pursue substantially broader remedies in civil court, including unlimited compensatory damages, emotional distress damages, punitive damages, and attorney fees. There is no double recovery between the two systems, but the combined exposure for an employer can be significantly higher than a Section 132a claim alone.

Filing Deadlines and Where to File

Timing is critical in these cases. A petition under Labor Code Section 132a must be filed with the Workers’ Compensation Appeals Board (WCAB) within one year of the discriminatory act, such as the termination, demotion, or other adverse action. Missing this deadline permanently forfeits the Section 132a statutory remedies. The one-year window is significantly shorter than the two-year deadline that applies to a parallel Tameny wrongful termination claim in Superior Court, and the three-year window that generally applies to FEHA claims. Because multiple deadlines run simultaneously from the date of the adverse action, identifying and preserving all available claims promptly is essential.

The WCAB handles the Section 132a petition as part of the workers’ compensation system, while FEHA and Tameny claims proceed in civil court. Many attorneys file petitions and civil complaints simultaneously to preserve all available remedies, because the adjudication of the 132a claim at the WCAB does not necessarily resolve or foreclose the civil claims.

Evidence That Matters in These Cases

Because employers rarely admit to retaliatory motivation, these cases are built on circumstantial evidence. The timeline of events is typically the most important starting point: when did the injury occur, when was the claim filed or expressed, and how close in time was the adverse action. Beyond timing, relevant evidence includes:

    • Performance reviews and disciplinary records from before and after the injury
    • Internal emails, texts, and memos regarding the employee’s injury, claim, or return to work
    • Documentation of how similarly situated employees without injuries were treated
    • Medical work restriction communications and the employer’s written or verbal responses
    • Records of accommodation requests and whether a good-faith interactive process was conducted
    • Witness statements from coworkers who observed the employer’s treatment of the injured worker

Filing Deadline Alert: A Labor Code Section 132a petition must be filed with the WCAB within one year of the discriminatory act or termination. This is shorter than the deadlines for FEHA and Tameny claims. Missing the Section 132a deadline forfeits specific statutory remedies including the 50% compensation increase and the right to reinstatement through the WCAB, even if other civil claims remain available.

Talk to a California Workers’ Compensation Attorney

Workers’ compensation retaliation cases involve overlapping legal frameworks, multiple filing venues, and strict deadlines that require prompt action. Law Offices of Zachary M. Kweller APC is ready to help. Reach out through the contact page or call (925) 663-8364 to discuss your situation.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For legal guidance tailored to your specific situation, consult a licensed attorney.