Working a Second Job on Workers’ Comp

You may be able to work a second job while receiving California workers’ compensation benefits. However, the answer depends on the type of benefits you receive, your doctor’s work restrictions, the duties of the second job, and how much income you earn.

Working another job does not automatically end your entire workers’ compensation claim. It can, however, reduce or stop temporary disability payments if the new income shows that you are able to work or replaces some of the wages you lost.

Before continuing or accepting a second job, report it to your attorney and the claims administrator handling your workers’ compensation case.

Follow Your Doctor’s Work Restrictions

Your treating doctor determines what kind of work you can safely perform while recovering. The doctor’s report should identify any limits on your duties, schedule, movements, lifting, standing, driving, or other activities.

For example, your doctor might restrict you from:

Lifting more than a certain amount
Standing for extended periods
Repetitive bending or reaching
Using an injured hand
Driving for long periods
Working more than a certain number of hours
Performing tasks involving particular chemicals or equipment

A second job may be allowed when its duties fall within those restrictions. Someone who cannot safely perform heavy warehouse work, for instance, may still be able to perform part-time administrative work.

As a practical matter, your medical restrictions should be followed at every job because they describe what your doctor believes you can safely do while recovering. California’s Division of Workers’ Compensation states that work performed during recovery must comply with the restrictions identified by the treating doctor.

What Happens to Temporary Total Disability Benefits?

Temporary total disability benefits, commonly called TTD, are intended to replace part of the wages you lose when your work injury prevents you from working while you recover.

California generally provides temporary disability payments equal to two-thirds of the gross wages lost, subject to minimum and maximum benefit limits. The Division of Workers’ Compensation also states that temporary disability payments generally stop when an injured worker returns to work, is released to work by the doctor, or reaches maximum medical improvement.

If you are receiving TTD based on a medical report stating that you cannot work at all, beginning a second job may raise questions about:

Whether you remain temporarily totally disabled
Whether the job violates your medical restrictions
Whether your doctor has accurate information
Whether you have been overpaid benefits
Whether your benefit classification should be changed

This does not necessarily mean you lose all workers’ compensation benefits. Medical treatment and other benefits may continue even if temporary wage-replacement payments are reduced or stopped.

What Is Temporary Partial Disability?

Temporary partial disability benefits, or TPD, may apply when you can perform some work while recovering but earn less than you earned before the injury.

For example, you may be able to:

Work fewer hours
Perform a lower-paying light-duty position
Continue one job but not another
Work in a position with less physically demanding duties

Under California Labor Code section 4657, temporary partial wage loss is generally based on the difference between the worker’s average weekly earnings and the amount the worker can probably earn during the disability.

Income from a second job may therefore reduce the amount of temporary partial disability you receive. The calculation depends on your pre-injury wages, current earnings, restrictions, hours worked, and the specific circumstances of your claim.

You Must Report Your Earnings

You should report all income from work to the claims administrator.

California’s Division of Workers’ Compensation instructs injured workers to report all forms of work income, including:

Wages
Tips
Commissions
Overtime
Bonuses
Food or lodging received as compensation
Earnings from other jobs

The state also specifically instructs workers to report income from other jobs they held when they were injured.

Do not assume that part-time work, cash payments, freelance projects, self-employment, app-based work, or occasional jobs do not need to be disclosed. Even a relatively small amount of income may affect the calculation of wage-loss benefits.

Reporting the work does not necessarily mean your claim will be denied. It allows the claims administrator to calculate the correct benefits and helps prevent an allegation that income was concealed.

What If I Already Had Two Jobs When I Was Injured?

If you were working for two or more employers at or around the time of your injury, wages from those jobs may be included when calculating your average weekly earnings.

California Labor Code section 4453 provides that when an employee works for two or more employers at or about the time of injury, the worker’s average weekly earnings are generally calculated by combining earnings from those employments. The statute places limits on the rate that may be used for the employment in which the injury did not occur.

For example, suppose you had:

A full-time weekday job
A part-time weekend job

If the work injury prevents you from performing both jobs, earnings from both may be relevant to the temporary disability calculation.

Workers should provide documentation such as pay stubs, tax records, schedules, employment agreements, and wage statements from each employer. Failing to report the second job could result in benefits being calculated using only one source of income.

What If I Start a New Second Job After My Injury?

Starting a new job after the injury can affect your benefits differently from continuing a job you already had.

The claims administrator may consider:

How much the new job pays
How many hours you work
Whether the duties comply with your medical restrictions
Whether the job shows increased earning ability
Whether you remain eligible for total or partial temporary disability
Whether your doctor knew you were performing the work

Before starting, give your treating doctor an accurate description of the proposed duties. Do not describe the position only by its title. Explain the lifting, standing, walking, driving, computer work, schedule, physical activity, and other requirements involved.

It is also wise to obtain clarification in writing if there is any uncertainty about whether the position complies with your restrictions.

Can I Work While Receiving Permanent Disability?

Permanent disability benefits are different from temporary disability benefits.

California’s Division of Workers’ Compensation explains that a worker may be entitled to permanent disability benefits even after returning to work. Permanent disability is based on lasting impairment caused by the work-related injury or illness, not solely on whether the person is currently unemployed.

As a result, working a second job does not automatically eliminate permanent disability benefits. However, employment and earnings may still be relevant to certain disputes, settlement negotiations, return-to-work issues, or evaluations of the worker’s abilities.

Can Medical Treatment Continue?

Returning to work or taking a second job does not necessarily end authorized medical treatment for the accepted work injury.

Workers’ compensation medical care is intended to cure or relieve the effects of a work-related injury. Temporary disability benefits are specifically tied to wage loss, while medical treatment is a separate category of benefit.

You should continue attending appointments and following the treatment plan. Tell your doctor about changes in your work activities, symptoms, hours, and physical demands.

What If the Second Job Looks Inconsistent With My Injury?

Insurance companies may question a claim when a worker’s reported job activities appear inconsistent with medical restrictions or statements made during the case.

For example, concerns may arise if someone:

Reports being unable to lift but performs heavy lifting elsewhere
Claims to be unable to drive but works as a delivery driver
Reports being unable to stand but works long shifts on their feet
Tells the doctor they are not working while earning income elsewhere
Performs more demanding work than the job they say they cannot perform

There may be a reasonable explanation. Different jobs can require very different activities. The safest approach is to be accurate and consistent with your doctor, attorney, employer, and claims administrator.

Hiding a Second Job Can Have Serious Consequences

Knowingly making a false or fraudulent material statement to obtain workers’ compensation benefits is unlawful under California Insurance Code section 1871.4. Violations can result in criminal penalties, fines, restitution, and other consequences.

Potential problems from concealing work or earnings may include:

Reduction or termination of benefits
A demand to repay overpaid benefits
Delays in the claim
Damage to your credibility
Increased surveillance or investigation
Denial of disputed benefits
Allegations of workers’ compensation fraud

A mistake is not automatically fraud. Fraud generally involves a knowingly false or fraudulent material statement. Nevertheless, income-reporting errors should be corrected promptly.

What Should I Do Before Working a Second Job?

Before continuing or accepting outside employment:

Review your doctor’s current work restrictions.
Give your doctor a complete description of the second job.
Tell your workers’ compensation attorney about the job.
Notify the claims administrator of the work and earnings.
Keep copies of pay stubs, schedules, and job descriptions.
Report changes in your wages or working hours.
Stop and seek medical advice if the work worsens your condition.

Do not rely solely on verbal conversations. Written documentation can help prevent later disagreements about what was reported and when.

Talk to a Workers’ Compensation Attorney

Working a second job while receiving workers’ compensation benefits is not automatically prohibited. The main questions are whether the work complies with your medical restrictions, whether all earnings have been reported, and whether the income changes your eligibility for temporary disability payments.

A workers’ compensation attorney can review your medical reports, wage records, second-job duties, and benefit notices to determine how the additional employment may affect your claim.

Need legal help? In California, navigating legal challenges, whether they involve personal injury, workers’ compensation, criminal defense or civil litigation, can be overwhelming. Khoury Law Group is here to provide the critical legal support you need. As a leading advocate for individuals facing legal battles, our experienced attorneys understand the complexities of the legal system and are committed to fighting for your best interests. With personalized legal strategies and compassionate support, we are dedicated to achieving the justice and compensation you deserve.

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