Employees fired over workers' comp can sue for retaliatory discharge

Employees discharged after filing a workers' compensation claim may sue their employers for retaliation, the Utah Supreme Court has ruled in answering a certified question from a U.S. District Court.

The plaintiff was hired as an environmental assistant/safety manager to investigate the

cause of a company's high workers' compensation costs. She determined that the company forced employees to wait for extensive periods of time to receive treatment and that its claims adjustor was hostile toward employees who filed comp claims. She was fired after she presented her findings to the company.

The plaintiff then filed suit, claiming that she was terminated for speaking out about the company's workers' compensation policies.

The employer moved to dismiss, arguing that Utah didn't recognize a claim for retaliatory discharge based on workers' compensation claims. The U.S. District Court certified the question to the state supreme court.

While the court recognized a public policy basis for allowing a cause of action for retaliatory discharge for filing a workers' compensation claim, it said the plaintiff failed to state a case.