An on-the-job injury can throw your life into turmoil. Suddenly, you are dealing with physical pain, medical appointments, and the stress of being unable to perform your usual job duties. Workers’ compensation is designed to be a safety net, providing financial support while you recover. But what if your injury does not completely prevent you from working? Or what if you have a second job? The question of whether you can work while receiving workers’ comp in Vermont is a common one, and the answer is not always straightforward.

Navigating the intersection of employment and workers’ compensation benefits requires a clear understanding of Vermont’s specific laws. The rules are precise, and a misstep—even an unintentional one—can have serious consequences, including the loss of benefits and potential accusations of fraud. This guide will walk you through the regulations surrounding work and workers’ comp, helping you understand your rights and obligations so you can make informed decisions during your recovery.

Types of Workers’ Compensation Benefits Available in Vermont

Before we explore working while on a claim, it is important to understand the different categories of wage replacement benefits available under Vermont’s workers’ compensation system. The type of benefit you receive is based on the severity of your injury and your ability to work, and it directly impacts whether—and how much—you can work.

Temporary Total Disability (TTD) Benefits

If your doctor determines that your work-related injury temporarily prevents you from performing any type of work, you are eligible for Temporary Total Disability (TTD) benefits. These payments are intended to replace the wages you lose while you are completely out of work.

• Can you work while receiving TTD? No. The basis for receiving TTD benefits is your inability to perform any work. If you earn money from any job while collecting TTD, you are violating the terms of these benefits. This includes returning to your original job, working a second job, or even starting a new light-duty position without notifying the insurance carrier. Doing so can be considered fraud.

Temporary Partial Disability (TPD) Benefits

Many injured workers are not completely disabled. Your doctor might clear you to return to work with certain restrictions, often referred to as "light-duty" or "modified-duty" work. If your employer can accommodate these restrictions, but you earn less than you did before your injury, you may qualify for Temporary Partial Disability (TPD) benefits.

• How TPD works: These benefits are calculated to make up for a portion of the wage difference. Specifically, TPD pays two-thirds of the difference between your pre-injury average weekly wage and your current earnings.
• Can you work while receiving TPD? Yes. In fact, TPD benefits are designed for this exact situation. You are encouraged to work within your medical restrictions. The key is transparency. You must report all earnings to your employer’s workers’ compensation insurance carrier. Failure to report your income accurately will result in the termination of your benefits and could lead to legal trouble.

Permanent Partial Disability (PPD) Benefits

After you have reached what is known as Maximum Medical Improvement (MMI)—the point at which your condition is not expected to improve further—your doctor will assess you for any permanent impairment. If the injury has resulted in a permanent loss of function, you may be entitled to Permanent Partial Disability (PPD) benefits.

• How PPD is determined: Your doctor will assign an impairment rating based on guidelines from the American Medical Association (AMA). This rating is used to calculate a lump sum or scheduled payment.
• Can you work while receiving PPD? Yes. PPD benefits are compensation for the permanent damage to your body, not for lost wages. Therefore, you can work while receiving these payments without it affecting the amount you receive. Your ability to work may still be limited by your permanent restrictions, but your earnings will not reduce your PPD award.

Permanent Total Disability (PTD) Benefits

In the most severe cases, a work injury may leave an employee permanently unable to perform any type of gainful employment. In this situation, the individual may be eligible for Permanent Total Disability (PTD) benefits, which can provide wage replacement for the remainder of their life.

• Can you work while receiving PTD? Generally, no. The premise of PTD is that you are incapable of maintaining any meaningful employment. Earning income while on PTD would contradict this and jeopardize your benefits.

The Importance of Reporting All Work Activity and Earnings

The single most important rule to follow when you are receiving workers’ comp benefits in Vermont is to be completely honest about your work status and income. The insurance company paying your benefits has the right to know about any money you earn, whether it is from your primary employer, a second job, or even self-employment.

Why Transparency Is Non-Negotiable

Insurance carriers actively investigate claims to prevent fraud. They may use surveillance, check social media, or review financial records. If they discover you are working and have not reported it, the consequences can be severe:

1. Termination of Benefits: Your workers’ comp benefits will be stopped immediately.
2. Repayment of Benefits: You will likely be required to pay back all the benefits you received while you were working without reporting it.
3. Criminal Charges: Workers’ compensation fraud is a serious crime in Vermont. It can lead to hefty fines and even jail time.

It is a common misconception that you only need to report work you do for your primary employer. This is incorrect. All sources of income must be reported.

What If I Had a Second Job Before My Injury?

This is a frequent point of confusion for many injured workers in Vermont. If you were working two or more jobs at the time of your injury, this is known as concurrent employment. Vermont law has specific rules for how this affects your workers’ comp benefits.

When calculating your average weekly wage (AWW)—the figure used to determine your benefit amount—the wages from all of your jobs should be combined. This ensures that your benefits more accurately reflect your total pre-injury earning capacity.

For this to happen, you must inform the insurance carrier about your second job right away. You will need to provide proof of your earnings, such as pay stubs. A knowledgeable workers’ comp attorney can be invaluable in ensuring your AWW is calculated correctly to include all sources of income.

Returning to Work on Light Duty: What to Expect

If your doctor clears you for light-duty work, it is generally in your best interest to accept it if your employer offers a suitable position. Refusing a legitimate light-duty job offer that accommodates your medical restrictions can lead to the suspension of your workers’ compensation benefits.

What Qualifies as a Suitable Light-Duty Offer?

A light-duty job offer must comply with the specific restrictions outlined by your treating physician. For example, if your doctor says you cannot lift more than 10 pounds, your employer cannot ask you to move 20-pound boxes. The offer must be for a real, meaningful position.

If you believe the job offered does not fit within your restrictions, you should immediately discuss it with your doctor and a workers’ compensation lawyer. Do not simply refuse the work without taking these steps, as it could be misinterpreted as an unwillingness to cooperate.

What If My Employer Cannot Accommodate My Restrictions?

If your employer does not have a light-duty position available that meets your medical limitations, you will continue to receive Temporary Total Disability (TTD) benefits while you remain out of work. During this time, you may be expected to look for other work within your restrictions.

The Role of a Vermont Workers’ Comp Attorney

The rules governing workers’ compensation in Vermont are complex, and insurance companies have experienced adjusters and lawyers working to protect their interests. Having a dedicated workers’ comp lawyer in VT on your side can level the playing field and protect your rights.

A skilled workers’ compensation attorney can help you by:

• Ensuring Accurate Benefit Calculation: Making sure your average weekly wage includes all income sources, including concurrent employment.
• Communicating with the Insurance Carrier: Handling all correspondence and negotiations on your behalf.
• Evaluating Light-Duty Offers: Advising you on whether a job offer is appropriate and what to do if it is not.
• Protecting You from Unfair Practices: Defending you against any attempts by the insurer to prematurely terminate or reduce your benefits.
• Navigating Disputes: Representing you in hearings and appeals if a dispute arises over your claim.

The legal process can be intimidating, especially when you are focused on recovering from an injury. An experienced attorney provides the guidance and advocacy you need to navigate the system with confidence.

Need Legal Help? Brandon J. Broderick, Attorney at Law, is One Phone Call Away

If you have been injured at work in Vermont, you do not have to face the complexities of the workers’ compensation system alone. A simple mistake, like failing to report income or misunderstanding the rules about light-duty work, can jeopardize the benefits you and your family depend on.

At Brandon J. Broderick, Attorney at Law, our team is dedicated to helping injured workers secure the benefits they deserve. We understand the challenges you are facing and are here to provide the expert legal support you need. We can answer your questions, protect your rights, and fight for the best possible outcome for your case.

Contact us today for a free consultation to learn how a skilled workers’ compensation lawyer can make a difference in your claim.