What Happens If You Get Caught Working While on Workers’ Comp?
Getting hurt on the job throws a wrench into everything. Suddenly, you’re dealing with doctors, pain, and the stress of not working. Then the big worry hits: money. Your regular paycheck is gone, replaced by workers’ compensation, which helps, but might not cover everything. So, the question pops up: can you work, maybe a little, while still collecting those workers’ comp checks in Minnesota?
The quick answer is: sometimes, yes. But—and this is a big but—it’s not a free-for-all. There are rules, restrictions, and reporting requirements you need to follow. Messing this up isn’t an option unless you enjoy headaches and potentially losing your benefits altogether. A Minnesota workers’ compensation lawyer can help you avoid costly mistakes and ensure your claim stays on track.
Feeling confused or stressed about your situation? You don’t have to figure this out alone. Call Mottaz & Sisk Injury Law at (763) 317-4574. We deal with this stuff day in and day out.
First Things First: What's the Point of Workers' Comp Anyway?
Before we get into the whole working-while-collecting deal, let’s level-set. Workers’ compensation is an insurance system designed to cover two main things when a job injury happens:
- Your medical bills: Doctor visits, prescriptions, physical therapy, surgeries – anything reasonable and necessary to treat the work injury.
- Part of your lost wages: Since you can’t earn your regular income, workers’ comp provides payments to help bridge the gap.
In Minnesota, these wage-loss benefits come in a few flavors, mainly defined by your ability (or inability) to work:
- Temporary Total Disability (TTD): This is when your doctor says you cannot work at all due to your injury. You get about two-thirds of your average weekly wage before the injury, up to a state maximum (Minn. Stat. § 176.101, subd. 1). TTD has limits, currently capped at 130 weeks in most cases.
- Temporary Partial Disability (TPD): This applies if you can work, but your injury prevents you from earning your full pre-injury wages. Maybe you’re working fewer hours or doing a lighter-duty job that pays less. TPD helps make up part of that difference (Minn. Stat. § 176.101, subd. 2).
- Permanent Partial Disability (PPD): This compensates you for the permanent loss of function of a body part after your medical treatment is mostly done (Minn. Stat. § 176.101, subd. 2a).
- Permanent Total Disability (PTD): For severe cases where the injury prevents you from ever returning to substantial gainful employment (Minn. Stat. § 176.101, subd. 4 & 5).
The Million-Dollar Question (Okay, Maybe Less): Can You Actually Work?
Alright, back to the main event. You’re getting workers’ comp, but you’re itching to work, or maybe you just plain need the extra cash. Can you do it? It boils down to one critical thing: what does your doctor say?
- Doctor Says “No Work”: If your treating physician has taken you completely off work (providing an off-work slip), then trying to work – any paid work – is usually a bad idea. Your TTD benefits are based on the medical opinion that you cannot work. Working directly contradicts this and puts your benefits at serious risk. Don’t do it.
- Doctor Says “Work with Restrictions”: This is where things get interesting. If your doctor clears you to return to work but gives you specific limitations (like no lifting over 10 pounds, limited standing, or reduced hours), you might be able to work. This is often called “light duty” or “restricted duty.”
These work restrictions are your guideposts. They define what you can safely do without re-injuring yourself or making things worse.
Working with Restrictions: The World of Light Duty and TPD
So, your doctor gave you restrictions. Great. What now? This opens the possibility of working and potentially receiving Temporary Partial Disability (TPD) benefits.
- Understanding Work Restrictions: These aren’t suggestions; they’re medical orders. Examples include:
- Lifting limits (e.g., max 15 lbs)
- Sitting/standing limits (e.g., alternate every 30 minutes)
- Limits on bending, twisting, or reaching
- Reduced work hours (e.g., 4 hours per day)
- Avoiding specific environments (e.g., vibrations, extreme temperatures)
- Your doctor should clearly outline these on a Report of Work Ability (RWA) form.
- Does Your Boss Have to Offer Light Duty? In Minnesota, your employer isn’t legally required to create a light-duty job specifically for you if one doesn’t exist or isn’t available. However, if they do offer you a job that meets all your restrictions, you generally need to accept it to keep receiving wage-loss benefits. Refusing suitable work can lead to your benefits being cut off.
- What if Your Employer Can’t Accommodate You? If your pre-injury employer doesn’t have work available within your restrictions, you aren’t stuck. You might be expected to look for suitable work elsewhere – a job that fits your physical limitations and is reasonably related to your qualifications (Minn. Stat. § 176.101, subd. 2). This job search might be required to continue receiving benefits.
- Temporary Partial Disability (TPD) Explained: If you find work (either with your old employer or a new one) that accommodates your restrictions, but you’re earning less than you did before the injury, TPD kicks in. TPD pays two-thirds of the difference between your pre-injury average weekly wage and your current earnings, subject to the state maximum weekly benefit amount. (Minn. Stat. § 176.101, subd. 2). TPD benefits also have duration limits – typically up to 275 weeks of payments or 450 weeks post-injury for injuries after October 1, 2018.
- Stay Within Your Limits: This is huge. Don’t try to be a hero and push past your restrictions. Working outside your limits not only risks your physical recovery but also tells the insurance company you might not need the restrictions (or the benefits) after all. Get your restrictions clearly documented and follow them.
The Absolute, Unbreakable Rule: Report Every Penny You Earn
Thinking about doing some side work and just keeping it quiet? Don’t. Seriously, just don’t. This is the fastest way to screw up your workers’ compensation claim.
- Why Reporting is Mandatory: It’s simple: it’s the law in Minnesota. Hiding income while collecting wage-loss benefits that are based on you not earning (TTD) or earning less (TPD) is fraud.
- How Earnings Affect Your Benefits:
- If you’re on TTD (supposedly unable to work) and you earn any income, your TTD benefits should stop for that period.
- If you’re on TPD (working but earning less), your TPD amount is calculated based on your actual current earnings. The insurance company needs your pay stubs or proof of income to figure out the correct TPD payment.
- The Ugly Consequences of Hiding Income: Getting caught (and insurers often investigate) means:
- Your benefits will likely be stopped immediately.
- The insurer will demand you pay back benefits you received while working unreported income.
- You could face investigation and charges for insurance fraud, potentially leading to fines or even criminal penalties (Minn. Stat. § 609.52). It’s just not worth the risk.
- How to Report: As soon as you start any kind of work, no matter how minor, tell the insurance adjuster handling your claim immediately. Tell your lawyer too, if you have one. Send them copies of your pay stubs regularly. Keep your own detailed records of hours worked and money earned. Transparency is your best defense.
What Kind of Work Needs Reporting? Part-Time, Side Gigs, Even Cash?
Does it matter if it’s just a few hours a week? Or a little cash gig for a neighbor? Yes, it absolutely matters.
- All Paid Work Counts: The rule is simple: if you are earning money for labor or services, you need to report it. This includes:
- Part-time jobs
- Temporary work
- Gig economy work (Uber, DoorDash, freelance writing, etc.)
- “Under the table” cash payments (which you shouldn’t be doing anyway, but if you are, it still needs to be reported for workers’ comp purposes)
- Self-Employment: This adds a layer of complexity. Calculating “earnings” can be tricky. You need meticulous records of income and business expenses. Expect the insurance company to look closely at self-employment income. Be prepared to justify your numbers.
- What About Volunteering? Generally, unpaid volunteer work is permissible, provided it doesn’t violate your medical restrictions. However, be cautious. If your volunteer position involves activities that look like paid work or push your physical limits, it could raise red flags for the insurer. It’s wise to discuss any planned volunteer work with the adjuster or your attorney first.
The bottom line is: When in doubt, report it.
Reaching the Finish Line (Sort Of): Maximum Medical Improvement (MMI)
Eventually, your doctor might say you’ve reached “Maximum Medical Improvement” or MMI. This doesn’t mean you’re perfectly healed, but rather that your condition has plateaued. No significant further improvement is expected, based on reasonable medical probability (Minn. Stat. § 176.011, subd. 13a).
- What MMI Means for Benefits: Reaching MMI is a significant point in a workers’ comp claim.
- TTD: Your Temporary Total Disability benefits typically stop 90 days after you’ve been properly served with notice of MMI from a doctor (Minn. Stat. § 176.101, subd. 1(k)).
- TPD: MMI doesn’t automatically stop TPD, but the clock on the total duration limits for TPD keeps ticking.
- PPD: MMI often triggers the determination of your Permanent Partial Disability rating, if applicable.
- Permanent Restrictions: Even after MMI, you might have permanent work restrictions if your injury caused lasting limitations.
- Life After MMI: If your permanent restrictions prevent you from returning to your old job, and your employer can’t offer suitable work, you might qualify for vocational rehabilitation assistance. This involves working with a Qualified Rehabilitation Consultant (QRC) – a vocational professional paid for by workers’ comp – to help you find a new job that fits your abilities and maximizes your earning potential (Minn. Stat. § 176.102). Sometimes, this can even include retraining for a new career path. You have the right to choose your own QRC, which is often a good idea.
- Working After MMI: You can absolutely work after reaching MMI, provided the job is within your permanent restrictions. If you work but earn less than your pre-injury wage due to those restrictions, you might continue to receive TPD benefits (up to the duration limits) and will receive any PPD benefits you are owed.
Dodging Bullets: Potential Pitfalls When Working on Comp
While working and collecting benefits is possible, it’s a path with potential traps. Be aware of these:
- Big Brother is Watching (Maybe): Insurance companies sometimes use surveillance (private investigators, social media monitoring) to verify claims, especially if they suspect someone is working with unreported income or exceeding restrictions. Don’t post photos of yourself doing activities that contradict your claimed limitations.
- Communication Breakdowns: Make sure everyone (your doctor, employer, QRC, lawyer, adjuster) is on the same page regarding your restrictions. Get everything in writing. Misunderstandings can cause major problems.
- Job Search Duties: If you’re receiving TPD or are post-MMI and unemployed but capable of some work, you usually need to prove you’re actively looking for a suitable job. Keep detailed logs of your job search efforts (applications submitted, interviews, contacts made). Failure to conduct a diligent job search can result in benefit suspension.
- Complexity Kills: Minnesota workers’ comp law is intricate. Rules about benefit calculations, MMI implications, suitable employment, and reporting requirements are specific. Insurance adjusters handle claims daily; you don’t. They might interpret rules in the insurer’s favor. Trying to manage this alone, especially when working with restrictions, invites mistakes that can cost you dearly.
Don't Gamble With Your Benefits: Work Smart on Workers' Comp
Protect your rights and ensure you follow the rules correctly for your specific situation. Get clear, straightforward guidance from a Minnesota personal injury attorney who understands the system inside and out.
Call Mottaz & Sisk Injury Law today at (763) 317-4574 for a consultation.
