WORK COMP-PLANT CLOSING

Hibu Websites • March 31, 2021

WORK COMP-PLANT CLOSING

06 Dec, 2018

Work Comp: Plant Closing

 

Q. What happens to an individual's workers' compensation case when the company for whom they are working closes the plant?

 

A. In most circumstances the fact that a company relocates, closes its doors, or lays off employees, is of no consequence to the worker in terms of their workers' compensation rights.

In other words, the worker would still be entitled to medical care, healing period payments, reimbursement of out-of-pocket expenses, and compensation for the worker's loss of earning capacity should the plant close. Keep in mind that with the closing of a plant the worker's loss of earning capacity is more easily demonstrated. A previously injured worker who is now faced with the prospect of going back into the job market and seeking employment with a new employer may be entitled to further compensation from the insurance company. Loss of earning capacity measures the loss of the worker's ability to secure work generally. Obviously, being forced into the job market (where a past back injury could cause an employer not to hire you) can be one factor that will increase the amount of industrial disability you are entitled to.

            If you have questions concerning the effect of a plant closing on your individual workers' compensation case talk with your employer, the insurance company, or an attorney of your choice.
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