Workers' Compensation benefits after Layoff

In these trying times of COVID-19, we are hopeful that you are doing well. Unfortunately, many of our clients’ employers have been shutting their doors during the stay-in-place / shelter-in-place orders by the Governor as a result of the Coronavirus. We hope this has not happened to you, but if it has, and if you still suffer the effects of a work injury, we want to be aware that you still may be entitled to wage loss benefits under the Workers’ Compensation Act.

till has yet to be determined whether many of these employers will be shutting down on a temporary or permanent basis, however, virtually every employer is hoping and planning that such closures will only be temporary. Of course, even if temporary, these closures have had a profound effect on many employees’ income streams. If you suffer the effects of a work injury and your employer has shut their doors because of COVID-19 and just doesn’t have any work for you, we want you to be aware of your rights, which may including ongoing entitlement to wage loss benefits.

Although we have never seen the likes of a pandemic forcing businesses to suspend work for their employees, Minnesota Courts have addressed similar ‘suspension’ periods where injured workers were not able to work because of their employer’s lack of work or other temporary shut downs. The Supreme Court of Minnesota has found previously that employees who were temporarily not working because of a strike at a plant that had an injury with ongoing limitations were still entitled to ongoing wage loss. The Supreme Court has also said wage loss benefits are payable if the layoff was for economic reasons. The Minnesota Workers’ Compensation Court of Appeals has also held, for example, the bus drivers who don’t get any hours because the employer shuts down for the summer are still entitled to wage loss benefits. The Minnesota Workers’ Compensation Court of Appeals has also held, for example, during times when employers have shut down for holiday breaks and the employee’s don’t get any work, employees can still be entitled to wage loss benefits.

Also, even if you have applied for and been receiving unemployment benefits, like the record-number of so many others, that’s just fine and receiving unemployment benefits may not bar you from receiving some continued wage loss benefits from workers’ compensation.

It’s also important to know that if you continue to suffer the effects of a work injury, formal written limitations or work restrictions are not necessary in all circumstances. The Workers’ Compensation Court of Appeals has confirmed that formal work restrictions are not necessary for the entitlement to either Temporary Total Disability (TPD) benefits or Temporary Total Disability (TTD) benefits.

Often an employee will return to work at an employer and work for years, but get caught in a layoff such as this. Written restrictions may not have been necessary or were lifted as the job was suitable. When a plant or business is shut down, similar to the current COVID-19 situation, workers are without ongoing wages. However, under many circumstances, they may be entitled to ongoing wage loss benefits through workers’ compensation. Depending upon if they are

going to return to the employer they may be entitled to TPD, TTD or perhaps even Permanent Total Disability (PTD) benefits. Even employees (who continue to suffer physical limitations as a result of a work injury) who have worked for years without a wage loss and now cannot work because of COVID-19 may still be entitled to wage loss. Sometimes, the workers’ compensation insurance company will settle these matters quickly as they have admitted claims and know they are likely to have to pay.

It is at times like this that an attorney, such as those at Schmidt and Salita, are vital to fight for the most the employee is entitled to receive. Don't leave potential wage loss or retraining benefits on the table. If the layoff is temporary, or if causes you to not work at all anymore, you don't want to leave wage loss that you are entitled to in the hands of the insurance company.

At Schmidt-Salita Law Team we discuss your employment history and Work Comp claim.anWe pursue claims and lawsuits against those employers, for medical care, wage loss, permanent disability, or the survivors’ losses. Please contact us at

Phone: 952-473-4530

Toll Free: 1-800-656-8450

Fax: 952-544-1308

Email: info@mnlawteam.com