Injured workers who receive benefits through the Washington State Department of Labor and Industries (L&I) may wonder whether they can legally take a part-time job, return to work part-time, accept a different job, or return to work on light duty without jeopardizing their claim. When it comes to the question, “can you work while receiving L&I benefits?” there is no single answer. L&I benefits are authorized in different situations for different reasons.

For example, time-loss compensation is awarded precisely because a worker cannot return to work. In this situation, taking even a small job without reporting it could cause a problem. Loss of earning power (LEP) benefits are awarded to compensate a worker who is working but earning less because of an injury. Permanent partial disability benefits follow different rules. Determining whether you can work while receiving L&I benefits requires a careful analysis of the benefits you are receiving.

Key Takeaways:

• Time-loss compensation is paid when a worker is unable to work. Any paid work, including work unrelated to the job of injury, should be reported to L&I immediately.
• Loss of Earning Power (LEP) benefits compensate a worker who is working but whose earnings have decreased by more than 5% from their pre-injury wage.
• If an employer continues paying the worker’s full wages instead of L&I paying time-loss compensation, the worker does not receive a time-loss payment for that period.
• A worker who is determined to be permanently and totally disabled receives a lifetime pension because they cannot perform any gainful work. Sustained work fundamentally conflicts with pension eligibility and may be treated harshly.
• An award for permanent partial disability (PPD) is tied to a permanent impairment rating, not current work status, so a worker can work a full-time job and still receive PPD benefits.
• Payments induced by a worker’s willful misrepresentation must be repaid, plus a 50% penalty.

Time-Loss Compensation Requires You Not to Be Working

Can you work while receiving L&I benefits for time-loss compensation? Importantly, time-loss compensation is awarded specifically because a worker’s medical provider has certified a total inability to work under RCW 51.32.090. Performing any paid work while receiving time-loss compensation directly conflicts with the basis for the benefit. A worker receiving time-loss compensation should immediately report any additional compensation, including brief, part-time, or informal work, to L&I.

Loss of Earning Power Is Built Around Working

Benefits for loss of earning power (LEP) are authorized for injured workers who are working but whose earnings have decreased by more than 5% from their pre-injury wage because of their injury. Under RCW 51.32.090, medical certification showing that the reduced earning capacity was caused by the injury is required.

Kept on Salary: Working Without a Time-Loss Check

If the worker’s employer at the time of the injury continues paying their full wages, the worker is considered “kept on salary” and, under RCW 51.32.090, does not receive a time-loss payment for that period. Although the worker is not actually working during this time, their employer is substituting their full wages for time-loss benefits. The worker’s L&I claim remains open, and they continue receiving medical benefits.

A Permanent Partial Disability Award Doesn’t Depend on Work Status

An award for permanent partial disability (PPD) is tied to a worker’s permanent impairment rating once their condition is fixed and stable. The benefit amount is not determined by work status. Under RCW 51.32.080, a worker can work while receiving L&I benefits for PPD full time.

A Pension Assumes You Can’t Sustain Work

L&I awards a pension under RCW 51.32.060 for workers who were determined to be permanently and totally disabled and unable to perform any gainful work. Any sustained, paid work is fundamentally inconsistent with the basis for a pension. L&I treats this matter as more than a reporting issue and may impose penalties or report the matter as potential injured worker fraud.

Every Benefit Comes With the Same Reporting Duty

Payments induced by a worker’s willful misrepresentation, including concealing work activity while receiving time-loss benefits, must be repaid along with a 50% penalty and may lead to a referral for fraud under RCW 51.32.240. L&I takes these matters seriously and has directed the public to report cases of suspected injured worker fraud. However, an innocent mistake or clerical error will not carry a penalty or result in criminal charges.

A worker can report additional compensation to their assigned LI& Claim Manager, or by completing a Work Status Form, the verification forms L&I periodically sends to an injured worker, or online through the L&I Secure Claim Information Portal.

An experienced Washington State L&I attorney can help injured workers navigate the strict rules that apply to additional work, income, and benefits to avoid penalties and allegations of injured worker fraud. Whether an employer offered you light duty or you are considering part-time or self-employed paid work, an attorney can explain how the new wages might affect your L&I benefits and tell you what, when, and how to report additional income. Workers receiving a pension face the highest stakes, as even modest paid work could jeopardize their eligibility.

Contact a Washington L&I Attorney

The answer to the question, “can you work while receiving L&I benefits”, is not necessarily simple. For injured workers who receive L&I benefits and wonder whether they can work, the answer depends on the type of L&I benefits they are receiving. A mistake can be costly and could mean repaying L&I benefits plus a penalty.

The Washington State workers’ compensation attorney team at Reck Law exclusively represents injured workers in claims for L&I benefits. Workers’ compensation is all we do, and we are here to help. To learn more about our unique approach to workers’ compensation claims in Washington State, contact Reck Law to schedule a free consultation.