Fired After Filing a Workers' Comp Claim in Los Angeles: What It Means for Your Severance

You got hurt at work. You filed a workers' comp claim. And then, weeks or months later, you were fired. Maybe they called it a layoff. Maybe they said your performance wasn't cutting it. Maybe they didn't give much of a reason at all.

Now they're handing you a severance agreement and asking you to sign it. Before you do anything, you need to understand something: this is one of the strongest leverage situations you can have in a severance negotiation. The timing of your termination creates a presumption that most employers would rather pay to make go away than fight in court.

Why This Firing Looks Illegal

California Labor Code Section 132a makes it illegal for an employer to fire, threaten, or discriminate against an employee for filing a workers' compensation claim. The law is specific and the penalties are real. If your employer terminated you because you filed a claim or because you got injured on the job, that's retaliation. Period.

Courts and the Workers' Compensation Appeals Board look at the timeline carefully. If you filed a claim in March and were fired in May, that proximity alone raises a red flag. The closer the termination is to the claim, the harder it is for the employer to argue the two events were unrelated.

Here's what makes this so powerful from a legal standpoint: the employer has to prove they had a legitimate, non-retaliatory reason for letting you go. If their stated reason doesn't hold up, or if the timing is suspiciously convenient, the inference of retaliation gets stronger. Los Angeles County juries understand this pattern. They see it regularly, and they don't look kindly on employers who punish injured workers.

The Difference Between Being "Laid Off" and Being Retaliated Against

Your employer might insist the termination had nothing to do with your workers' comp claim. They'll point to a reorganization, budget cuts, or some performance issue they suddenly discovered. Sometimes that's true. But ask yourself a few questions:

Were you performing well before the injury? Did anyone raise performance concerns before you filed your claim? Were other employees in similar roles also let go, or just you? Did your manager make comments about your absences, your restrictions, or your inability to do the full job? Was there pressure for you to come back before you were medically cleared?

If the performance issues materialized after you filed, or if you were the only one cut while others kept their jobs, the "layoff" story starts to fall apart. That's not a coincidence. That's a pattern that employment lawyers in Los Angeles recognize immediately.

Why the Severance Agreement Is Worth More Than They're Offering

When an employer fires someone who recently filed a workers' comp claim, they know they have a problem. The severance agreement they're offering you isn't just a goodbye package. It's a calculated attempt to buy a release of your retaliation claims at a discount.

Look at what the general release in that agreement actually says. It almost certainly includes language releasing all claims "arising out of or related to your employment," including claims under Labor Code Section 132a, FEHA, and every other statute that could form the basis of a retaliation lawsuit. The company is asking you to give up those claims. The question is whether they're paying you enough for what you're giving up.

In most cases, the answer is no. A standard severance offer of a few weeks' pay doesn't come close to the value of a viable 132a retaliation claim. Remedies under Section 132a can include reinstatement, back pay, a penalty of up to $10,000 paid by the employer, increased compensation of up to $10,000, and costs and expenses including attorney's fees. That's just the workers' comp retaliation claim. If you also have claims under FEHA for disability discrimination or failure to accommodate your work restrictions, the exposure goes up significantly. FEHA claims can include emotional distress damages and, in egregious cases, punitive damages.

The employer's lawyers have done this math. They know the exposure. The severance offer is set at a number they hope you'll accept without consulting anyone.

Filing a 132a Claim with the Workers' Compensation Appeals Board

If you were fired in retaliation for filing a workers' comp claim, you can file a 132a petition with the Workers' Compensation Appeals Board. This is a separate proceeding from your underlying workers' comp case, and it specifically addresses the retaliation.

The petition must be filed within one year of the discriminatory act (in this case, your termination). The WCAB can award reinstatement, lost wages, and the penalties described above. Filing this petition, or preserving the right to file it, gives you significant leverage in severance negotiations because the employer now faces proceedings on two fronts.

You can also file a separate civil lawsuit for wrongful termination in violation of public policy. California courts have recognized that firing an employee for filing a workers' comp claim violates the fundamental public policy of the state. This claim goes beyond the WCAB remedies and opens the door to full civil damages, including emotional distress and punitive damages.

What to Do Right Now

Don't sign the severance agreement. You have time. If you're over 40, the Older Workers Benefit Protection Act requires the employer to give you at least 21 days to review the agreement. Even if you're under 40, California law doesn't require you to sign on the spot. Take the document home.

Document the timeline. Write down every key date: when you were injured, when you filed the workers' comp claim, when your employer first learned about the claim, when you were fired, and what reason was given. Note any comments from managers or HR about your injury, your absences, or your work restrictions. This timeline is the backbone of a retaliation claim.

Preserve all communications. Emails, text messages, performance reviews, and any written documentation of your work history. If your reviews were positive before the injury and suddenly turned negative after you filed, that's textbook pretext. Save everything.

Understand what you're giving up. The release of claims in the severance agreement is designed to close out the company's liability. Once you sign, your 132a claim, your FEHA claims, and your wrongful termination claim are gone. Make sure the payment reflects the true value of what you're releasing.

Get Your Claims Evaluated

Workers' comp retaliation cases are among the strongest employment claims in California, and they create real leverage for severance negotiation. If you were fired after filing a workers' comp claim in Los Angeles, our employment attorneys can evaluate your situation, assess the strength of your retaliation claims, and make sure the severance offer reflects what those claims are actually worth. The consultation is free. Don't sign away a strong legal position for a weak severance check. Contact us today.