Consequences of Working While on Workers' Comp in Texas

WORKERS COMPENSATION LAWWORK INJURYWORKERS COMPENSATION

2/3/20242 min read

a poster with a man in a hat and a hat
a poster with a man in a hat and a hat

Workers' compensation benefits are designed to provide financial support to employees who have been injured on the job and are unable to work. However, if an individual is caught working while on workers' comp in Texas, there can be serious legal consequences.

Engaging in work activities while receiving workers' compensation benefits can be seen as fraudulent behavior. This can result in accusations of fraud and potential legal action. If found guilty, the consequences can include fines, restitution, and even imprisonment.

Understanding Workers' Compensation in Texas

Workers' compensation is a type of insurance that provides medical benefits and wage replacement to employees who have suffered work-related injuries or illnesses. In Texas, employers are not required to carry workers' compensation insurance. However, if they choose to do so, they must follow specific guidelines and regulations.

When an employee is injured on the job and is unable to work, they may be eligible to receive workers' compensation benefits. These benefits are intended to cover medical expenses and provide a portion of the employee's lost wages.

The Consequences of Working While on Workers' Comp

Working while receiving workers' compensation benefits is considered fraudulent because it implies that the individual is not as injured or disabled as they claims to be. If an employee is caught engaging in work activities that are similar to their previous job or earning income while on workers' comp, they may face severe repercussions.

1. Accusations of Fraud: The first consequence of working while on workers' comp is the accusation of fraud. The employer or the insurance company may report the employee's actions to the Texas Department of Insurance, Division of Workers' Compensation, which can initiate an investigation.

2. Legal Action: If the investigation uncovers evidence of fraudulent behavior, the employee may face legal action. This can lead to criminal charges and a potential trial. If found guilty, the consequences can include fines, restitution, and even imprisonment.

3. Termination of Benefits: Working while on workers' comp can also result in the termination of benefits. If it is determined that the employee can work, their benefits may be discontinued, leaving them without the financial support they need.

Seeking Legal Advice

If you are receiving workers' compensation benefits and are unsure about what activities you are allowed to engage in, it is crucial to seek legal advice. An experienced workers' compensation attorney can provide guidance and ensure that you are following the necessary guidelines to avoid any legal complications.

Remember, it is essential to be honest and transparent throughout the workers' compensation process. Attempting to work while on workers' comp can have severe consequences and jeopardize your legal rights and benefits.

Conclusion:

Working while on workers' compensation benefits in Texas can have severe legal consequences. Accusations of fraud, legal action, and termination of benefits are just a few of the potential outcomes. It is crucial to understand the guidelines and seek legal advice to ensure compliance and protect your rights.