Yes, you can be terminated while you are on Long Term Disability, but your employer cannot simply fire you because you receive disability benefits. Whether a termination is lawful depends on several factors.
Many people are surprised to learn that employment laws and Long Term Disability policies do not always provide the same protections. Understanding how these issues work together is essential before making decisions about your future.
If you have been terminated while receiving Long Term Disability benefits, an attorney can help you understand your rights. Our Long Term Disability lawyers have more than 120 years of combined legal experience. Call today for a free consultation.
The Difference Between Employment Law and Disability Benefits
Many people believe that receiving LTD benefits means their employer must continue employing them indefinitely. Unfortunately, disability insurance and employment law operate independently in many important respects.
Your disability insurance policy determines whether you qualify for monthly LTD benefits. Your employment status, however, depends on different legal standards. That separation can create confusion when someone loses a job while continuing to receive disability payments.
Because these issues overlap, employers and insurers sometimes send confusing messages. To understand your legal situation better, review both your job circumstances and your disability policy.
For a free legal consultation, call (800) 562-9830
How Disability Laws May Protect Your Employment
Federal law may provide important protections if you have a qualifying disability. Depending on your circumstances, your employer may have obligations that continue even while you are unable to work.
Employers sometimes need to think about reasonable accommodations before letting someone go. This responsibility doesn’t go away just because an employee has had a serious medical issue. Each case must be looked at individually.
Whether those protections apply depends on several legal factors. Understanding disability laws and the Long Term Disability provisions to meet is often one of the first steps in determining whether your rights have been violated.
The Federal Family and Medical Leave Act
In accordance with the Family and Medical Leave Act, an employer cannot terminate you simply because you took leave. They must grant a leave of 12 work weeks to handle matters such as care of a newborn child or sick family member, but it does not preclude you from being released.
The employer cannot use the excuse that an employee is receiving disability benefits during that leave as a justification to fire you.
The Americans with Disabilities Act
Under the Americans with Disabilities Act, an employer must make reasonable accommodations to allow a disabled worker to perform the regular tasks associated with their job. If an employer fails to provide those accommodations and terminates a disabled employee, it can be sued under federal law.
Different states have laws that protect workers with disabilities from being wrongfully fired. If a disabled employee loses their job, they should talk to a Long Term Disability insurance attorney to learn about their rights and what they can do about it.
The Employee Retirement Income Security Act
If an employer terminates you solely because you are seeking LTD benefits under an employer-sponsored Long Term Disability insurance plan, they may be violating the Employee Retirement Income Security Act of 1974 (ERISA).
Likewise, if your employer retaliates because you asked for or received Long Term Disability benefits, they may be breaking the law under ERISA. It’s important to talk to a disability lawyer to understand whether your disability insurance claim is governed under ERISA law.
What Employers Must Consider Before Terminating an Employee
Before employment termination, employers often must evaluate whether legal obligations apply under United States or state law. The specific requirements depend on the facts surrounding your disabling condition and your employment.
An employer should not make assumptions about your ability to work in the future. Decisions based on inaccurate information or stereotypes about disabilities may violate the law. A careful review of the employer’s actions is often necessary.
Some important questions include:
- Did the employer evaluate your situation individually rather than relying on assumptions?
- Did the employer consider any legal obligations before ending your employment?
- Did the employer communicate honestly about the reasons for the termination?
Can Your Long Term Disability Benefits Continue After Termination?
In many cases, your Long Term Disability benefits may continue even after your employment ends. Eligibility for benefits generally depends on the terms of your disability policy rather than your current employment status.
Insurance companies sometimes review claims more aggressively after a termination. That does not automatically mean your benefits should stop. The insurer must still follow the policy language when evaluating your continued eligibility.
If your Long Term Disability benefits are questioned after losing your job, it is important to respond carefully. The information you provide during the claims process can affect your ability to continue receiving benefits.
How an Attorney Can Protect Your Rights
You can be terminated while on Long Term Disability, but only under very specific circumstances. It can be difficult to sort through complicated employment laws and disability insurance rules. Many people simply want clear answers.
A lawyer can look over your work history, check your insurance policy, and see if your employer or insurance company has not met its legal requirements. This advice can help you make informed choices during a difficult time.
At Marc Whitehead & Associates, disability is all we do. Our team can work to identify potential legal violations while helping you protect your financial stability. Call today for a free consultation.
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