Can I Be Fired If My Short-Term Disability Is Denied in California?
No, you cannot legally be fired simply because your short-term disability claim was denied.
The denial of disability insurance benefits doesn’t automatically strip away your job protections under California and federal law, and your employer must still comply with leave laws and disability accommodations regardless of whether your insurance claim was approved.
Contact our Torrance discrimination lawyer for a free consultation.
How We Help Employees Facing Termination After Disability Denial
We represent California employees who’ve been wrongfully terminated following a short-term disability denial. Our approach combines deep knowledge of employment law with a genuine understanding of how devastating job loss can be during a health crisis. We investigate whether your employer violated CFRA, FMLA, ADA, or California’s Fair Employment and Housing Act protections.
Our team examines every detail of your case. We review your medical documentation, employment records, and the timeline of events leading to termination. This thorough analysis helps us identify violations that many employees don’t realize occurred.
We’ve secured significant recoveries for employees facing similar situations. Our experience includes a $1,400,000 wrongful termination settlement and a $1,000,000 wrongful termination settlement for clients whose employers violated their legal protections. These results demonstrate our commitment to holding employers accountable when they illegally fire employees during medical crises.
📌 Additional reading: disability discrimination in California
The Difference Between Insurance Denial and Job Protection
Your short-term disability insurance and your job protection operate on separate legal tracks. Insurance denial affects your wage replacement benefits, while job protection stems from employment laws that exist independently of your insurance status. This distinction confuses many employees who assume the denial ends all their rights.
Short-term disability insurance provides temporary income replacement when you can’t work due to illness or injury. California’s State Disability Insurance (SDI) through the Employment Development Department covers many workers, while others have private policies through their employers.
When these claims get denied, it impacts your financial situation but doesn’t change your employer’s legal obligations.
Job protection laws like CFRA, FMLA, and the ADA create rights that your employer must honor, whether or not your insurance pays benefits. These laws require employers to provide reasonable leave time, consider accommodations, and refrain from disability discrimination.
Your employer cannot use an insurance company’s denial as justification for termination if you still qualify for legal protections.
⚖️ The insurance company decides benefit eligibility based on policy terms and medical evidence. Your employer decides job status based on employment laws, company policies, and your ability to perform essential job functions. We help clarify which protections apply to your situation and how to enforce them against your employer.
California and Federal Laws That Protect Your Job
Multiple layers of legal protection may shield you from termination even after a disability denial. Each law has specific eligibility requirements and provides different types of protection. We analyze which laws apply to your case to build the strongest possible claim.
California Family Rights Act (CFRA)
CFRA provides up to 12 weeks of unpaid, job-protected leave per year for serious health conditions. This law applies to employers with five or more employees, making it broader than federal protections. You qualify if you’ve worked for your employer for at least 12 months and logged 1,250 hours in the previous year.
Your employer must hold your position or provide an equivalent role when you return from CFRA leave. The law protects you from termination, demotion, or other adverse actions because you took protected leave. California’s Civil Rights Department enforces CFRA violations and investigates discrimination complaints.
Family and Medical Leave Act (FMLA)
FMLA offers similar protections at the federal level for employers with 50 or more employees within a 75-mile radius. The law provides 12 weeks of unpaid leave for serious health conditions that make you unable to perform your job. Eligibility requirements mirror CFRA’s one-year employment and 1,250-hour work history.
Federal protections run concurrently with California protections in most cases. This means you’re using both sets of leave simultaneously rather than getting 24 total weeks. Your employer must maintain your health insurance during FMLA leave and restore you to your original position or an equivalent one upon return.
Americans with Disabilities Act (ADA)
The ADA requires employers with 15 or more employees to provide reasonable accommodations for qualified individuals with disabilities. These accommodations might include modified work schedules, light-duty assignments, or extended unpaid leave beyond CFRA/FMLA limits. Your employer must engage in an interactive process to identify potential accommodations.
Disability under the ADA means a physical or mental impairment that substantially limits one or more major life activities. You must be able to perform the essential functions of your job with or without reasonable accommodation. The law protects employees from discrimination based on actual disabilities, records of disabilities, or being regarded as having disabilities.
California Fair Employment and Housing Act (FEHA)
FEHA prohibits disability discrimination and requires accommodations similar to the ADA but applies to employers with five or more employees. This broader coverage protects more California workers than federal law. The law also provides stronger remedies and longer statutes of limitations for filing complaints.
FEHA’s reasonable accommodation requirement extends to pregnancy-related disabilities through the Pregnancy Disability Leave law. Employers must provide up to four months of pregnancy disability leave, which runs separately from CFRA protections. Our team helps you navigate these overlapping protections to secure maximum leave time and job security.
📌 Additional reading: can I collect unemployment if terminated while on disability
Unsure which laws apply? Contact us for a free consultation in English or Spanish.
When Termination After Disability Denial Becomes Wrongful
Your employer violates the law when they fire you for reasons connected to your disability or protected leave. These violations often occur subtly, making it crucial to recognize the warning signs. We’ve seen employers use various pretexts to disguise discriminatory terminations.
Retaliatory Termination
Retaliation occurs when your employer fires you because you requested medical leave, filed a disability claim, or complained about discrimination. California law prohibits adverse employment actions taken in response to exercising your legal rights.
Common retaliation patterns include:
- Termination shortly after requesting accommodations
- Sudden performance complaints following a disability disclosure
- Firing immediately after you return from protected leave
These timing issues create strong evidence of unlawful retaliation even when your employer claims other reasons for the termination.
Disability Discrimination
Discrimination happens when your employer treats you unfavorably because of your disability or perceived disability. This includes firing you because they believe you can’t perform your job, even without attempting reasonable accommodations. Employers cannot make assumptions about your limitations without medical evidence and an interactive discussion.
Failure to Accommodate
Employers must engage in a good-faith interactive process to identify reasonable accommodations. Terminating you without exploring accommodation options violates the ADA and FEHA. This includes refusing to consider:
- Extended leave beyond the initial protected period
- Modified duties or reduced workload
- Schedule adjustments or remote work options
- Ergonomic equipment or workplace modifications
The interactive process requires both parties to communicate openly about limitations and potential solutions. We evaluate whether your employer participated in good faith or simply went through the motions to justify termination.
Interference with Protected Leave
Your employer interferes with protected leave when they discourage you from taking it, deny qualified requests, or penalize you for using it. This includes threatening termination if you take leave, refusing to restore your position afterward, or counting protected leave as an attendance violation. We investigate these interference patterns to hold your employer accountable for CFRA and FMLA violations.
The At-Will Employment Exception
California follows at-will employment, meaning employers can generally terminate employees for any legal reason or no reason at all. However, significant exceptions protect employees from termination based on discriminatory reasons or violations of public policy. Disability-related terminations fall squarely within these exceptions.
At-will employment doesn’t give employers carte blanche to fire disabled employees or those on protected leave. The numerous state and federal laws protecting disabled workers create enforceable rights that override at-will provisions. Your employment contract or employee handbook may provide additional protections beyond statutory minimums.
Your employer might claim your termination was for performance issues, restructuring, or other legitimate business reasons. We investigate whether these stated reasons are pretextual—meaning the real reason was your disability or leave request. Our analysis of termination patterns, witness testimony, and documentation often reveals the true motivation behind supposedly neutral business decisions.
📌 Additional reading: can you be fired while on disability in California
What Happens When Multiple Leave Laws Overlap
More than one leave law can apply at the same time, and how they interact affects how much protected leave you actually receive.
CFRA and FMLA
If you’re eligible for both CFRA (California law) and FMLA (federal law), they usually run at the same time, not one after the other. That means you generally get 12 weeks total, not 24 weeks, when the leave is for your own serious health condition.
Pregnancy disability leave (PDL)
Pregnancy disability leave works differently. California provides up to four months of PDL, and this leave does not run at the same time as CFRA. After pregnancy disability leave ends, you may still be entitled to an additional 12 weeks of CFRA baby-bonding leave, giving pregnant employees more total protected time off than federal law alone.
Additional leave as an accommodation
Even after CFRA or FMLA leave ends, unpaid leave may still be required as a reasonable accommodation under disability laws. Courts look at factors like your job duties, how long additional leave is needed, and the employer’s size and resources. This means job protection can sometimes continue beyond standard leave limits.
| Leave Type | Maximum Duration | Employer Size | Runs Concurrently With |
| CFRA | 12 weeks/year | 5+ employees | FMLA |
| FMLA | 12 weeks/year | 50+ employees | CFRA |
| Pregnancy Disability Leave | 4 months | 5+ employees | None (runs separately) |
| ADA Reasonable Accommodation | Varies (case-by-case) | 15+ employees | May extend beyond CFRA/FMLA |
| FEHA Reasonable Accommodation | Varies (case-by-case) | 5+ employees | May extend beyond CFRA/FMLA |
We help you identify which protections apply and how to maximize your leave entitlements under these overlapping laws.
Our Huntington Beach discrimination lawyer can help you navigate your leave rights.
Documenting Your Disability and Termination
Strong documentation protects your legal rights and strengthens potential wrongful termination claims. We advise clients to maintain detailed records from the moment they disclose a medical condition to their employer. These records become crucial evidence if your employer later terminates you.
Keep copies of all medical documentation, including:
- Doctor’s notes and treatment plans
- Disability certifications
- Emails and written communications about your condition
- Leave request documentation
- Accommodation discussion records
Your short-term disability denial letter contains important information about why benefits were denied. This documentation helps differentiate between insurance claim issues and employer obligations. The insurance company’s reasoning has no bearing on your employer’s duty to comply with employment laws.
Photograph or scan important documents and store them securely outside your work computer or email. Employers sometimes restrict access to company systems during termination, potentially blocking you from retrieving evidence. Personal copies ensure you maintain access to documentation needed for your case.
Request your complete personnel file from your employer within 30 days of termination. California Labor Code Section 1198.5 requires employers to provide copies upon request. We review your personnel file to identify documents that contradict your employer’s stated reason for termination.
Steps to Take If You're Fired After Disability Denial
Taking immediate action protects your legal rights and strengthens your position. The first 90 days after termination are critical for preserving evidence and meeting filing deadlines. We guide clients through each step to ensure nothing falls through the cracks.
- Request written explanation: Ask your employer to provide written reasons for your termination. California law doesn’t require employers to give reasons, but requesting them creates documentation of their stated justification.
- File administrative complaints: You must file complaints with appropriate agencies before pursuing lawsuits. For discrimination claims, file with California’s Civil Rights Department or the federal Equal Employment Opportunity Commission within specific timeframes.
- Preserve evidence: Gather all documentation related to your employment, medical condition, and termination. This includes emails, text messages, performance reviews, medical records, and witness contact information.
- Review your benefits: Determine your eligibility for unemployment benefits, continued health insurance through COBRA, and any severance pay. Don’t sign severance agreements without legal review, as they typically contain releases of legal claims.
- Consult our employment attorney: Time limits for filing claims vary depending on the legal theory. FEHA claims must be filed with the Civil Rights Department within three years of the discriminatory act. We ensure you meet all applicable deadlines while building the strongest possible case.
Common Employer Defenses and How We Counter Them
Employers facing wrongful termination claims typically raise predictable defenses. We’ve encountered these arguments countless times and know how to dismantle them with evidence and legal precedent. Our experience allows us to anticipate and prepare for these defenses before they arise.
Common employer defenses include:
“Performance issues predated the disability request”: Employers often point to old performance reviews or minor infractions to justify termination. We compare the severity and timing of these supposed issues to company practices for other employees.
“Position was eliminated for business reasons”: Restructuring claims require scrutiny of whether the position truly disappeared or was merely renamed. We investigate whether your job duties were redistributed to other employees or if a replacement was hired shortly after your termination.
“We didn’t know about the disability”: Employers cannot claim ignorance when you’ve requested accommodations, disclosed medical conditions, or submitted leave paperwork. We examine all communications to establish when your employer gained knowledge of your disability.
Our investigative approach uncovers evidence that exposes these pretextual justifications for what they really are—attempts to disguise discriminatory terminations.
Employer giving you suspicious reasons for termination? Contact us for a case evaluation.
How Disability Denial Affects Workers' Compensation Claims
Workers’ compensation and short-term disability serve different purposes but sometimes create confusion when both apply. Workers’ comp covers workplace injuries with medical treatment and temporary disability payments. Private or state disability insurance covers non-work-related conditions or injuries occurring outside employment.
If your injury happened at work, you should file a workers’ compensation claim rather than or in addition to short-term disability. Workers’ comp termination protections differ from CFRA/FMLA, with California Labor Code Section 132a prohibiting discrimination or termination for filing claims. Employers cannot retaliate against you for exercising workers’ compensation rights.
Some employers try to force disabled workers to choose between workers’ comp and disability insurance. This false choice violates your rights, as you’re entitled to pursue all applicable benefits. We’ve seen employers discourage workers’ comp claims to avoid increased insurance premiums, putting their financial interests above employee welfare.
The interaction between workers’ comp and disability leave creates complex legal questions about which benefits run concurrently and which provide independent protections. Our experience with both workers’ compensation and employment law allows us to identify all available remedies and maximize your recovery across multiple claims.
What Damages You Can Recover in Wrongful Termination Cases
Successful wrongful termination claims compensate you for various losses stemming from illegal termination. California law provides broad remedies designed to make you whole after your employer violates your rights. We pursue all available damages to ensure you receive full compensation.
- Lost wages and benefits: You can recover all wages, bonuses, commissions, and benefits lost from termination until you find new employment or trial. This includes health insurance costs you incurred due to losing coverage.
- Emotional distress damages: Wrongful termination causes significant emotional harm, including anxiety, depression, humiliation, and loss of reputation. California recognizes these intangible injuries and allows recovery for emotional suffering caused by discriminatory termination.
- Punitive damages: When your employer acts with malice, fraud, or oppression, you may recover punitive damages designed to punish and deter similar conduct. California Civil Code Section 3294 authorizes punitive damages in employment discrimination cases when employers act with conscious disregard for your rights.
- Attorney’s fees and costs: Employment discrimination statutes allow prevailing employees to recover attorney’s fees and litigation costs from employers. This fee-shifting provision enables employees to hire quality legal representation without worrying about legal bills.
📌 Additional reading: disability discrimination settlement amounts
Real Case Results Protecting California Employees
Our track record demonstrates our commitment to holding employers accountable for wrongful termination. These results show what’s possible when experienced employment attorneys fight for your rights. Every case differs, but these examples illustrate the significant recoveries we’ve achieved.
We secured a $1,400,000 wrongful termination settlement for a Los Angeles employee. The case involved complex employment law violations and required extensive litigation to reach this substantial recovery. Our willingness to take cases to trial when necessary motivates employers to offer fair settlements.
Another client received a $1,000,000 wrongful termination settlement after wrongful termination in Los Angeles. This case exemplifies our approach of thoroughly investigating employer misconduct and presenting compelling evidence of legal violations. We don’t accept lowball settlement offers when our clients deserve full compensation.
These results reflect our strategy of treating clients as an extension of our family and fighting tirelessly for their rights. We invest significant time and resources into building strong cases that demonstrate clear legal violations. Employers recognize our reputation for thorough preparation and courtroom success, which strengthens our negotiating position.
💡 Settlement amounts depend on numerous factors including lost wages, emotional distress severity, employer conduct, and available insurance coverage. While past results don’t guarantee future outcomes, they demonstrate our ability to maximize client recoveries through skilled advocacy and strategic litigation.
The Interactive Process and Accommodation Requests
The interactive process requires good-faith communication between you and your employer to identify reasonable accommodations. This conversation should begin as soon as you notify your employer of a disability or need for accommodation. Both parties must participate honestly and explore potential solutions.
Your employer cannot refuse to engage in the interactive process or go through the motions without genuine consideration of accommodations. Common reasonable accommodations include:
- Modified schedules or flexible hours
- Ergonomic equipment or workspace modifications
- Extended leave beyond CFRA/FMLA limits
- Light-duty assignments or reduced workload
- Telecommuting or remote work options
Employers sometimes claim accommodations create undue hardship, meaning significant difficulty or expense given their resources. Undue hardship analysis considers your employer’s size, financial resources, and the nature of their operations. Small employers have lower accommodation burdens than large corporations with substantial resources.
We advocate for you during the interactive process to ensure your employer genuinely considers accommodations rather than using the process as a pretext for termination.
Employer refusing to discuss accommodations? Contact us to protect your rights.
Time Limits for Filing Wrongful Termination Claims
Time limits for employment claims vary based on which laws your employer violated. Missing these deadlines can permanently destroy your case, regardless of how strong your evidence is. California and federal laws impose different filing requirements that create a complex web of deadlines to navigate.
Key filing deadlines include:
- FEHA claims: Must be filed with California’s Civil Rights Department within three years of the discriminatory act. After investigation and a right-to-sue letter, you have one year to file a lawsuit.
- Federal EEOC complaints: Must be filed within 180 days of the discriminatory act, extended to 300 days in states like California with equivalent state agencies. The EEOC investigates and issues right-to-sue letters allowing you to proceed with litigation.
- FMLA interference claims: Must be filed within two years of the violation, extended to three years for willful violations.
These shorter deadlines make early consultation with employment attorneys crucial. We ensure you meet all applicable deadlines while building the strongest possible case.
Why Insurance Companies Deny Legitimate Disability Claims
Insurance companies deny many legitimate disability claims during initial review. The denial doesn’t necessarily mean your claim lacks merit—it often reflects the insurer’s cost-saving strategy of rejecting claims to discourage appeals. We help you recognize that denial doesn’t validate your employer’s termination decision.
Insurance companies employ medical reviewers who examine your records without examining you personally. These reviewers often reach different conclusions than your treating physicians, who have ongoing relationships with you. The insurance company’s financial incentive to deny claims creates inherent bias in their review process.
Many denied claims get approved on appeal when claimants submit additional medical evidence or challenge the insurer’s medical opinions. The California Department of Insurance regulates disability insurance and investigates unfair claim practices. Your success on appeal demonstrates your medical condition was legitimate from the start, further undermining any employer claim that termination was justified.
Your employer’s job protection obligations exist independently of insurance claim outcomes. Even if your disability claim ultimately gets denied on appeal, your employer still violated the law if they terminated you in violation of CFRA, FMLA, ADA, or FEHA protections during the claim period.
We can help you pursue both your insurance appeal and your wrongful termination claim simultaneously.
Get the Legal Guidance You Deserve
California employment law provides robust protections for employees facing disability-related termination. These laws exist because legislators recognized that disabled workers need protection from employers who prioritize business interests over employee rights. We translate these legal protections into real-world results through experienced advocacy and client-focused representation.
Your case deserves individualized attention rather than assembly-line processing. We limit our caseload to ensure every client receives thorough investigation, strategic planning, and aggressive representation. This approach has generated over $100 million in recoveries for California employees and injury victims across our practice areas.
Our bilingual team serves California employees in English and Spanish, ensuring language never becomes a barrier to justice. We understand the cultural and practical challenges facing California’s diverse workforce. This cultural competency informs our approach to every case, from initial consultation through resolution.
⚖️ We work on contingency, meaning you pay no attorney’s fees unless we win your case. Our fee is 33% before litigation begins, increasing to 40-45% if litigation becomes necessary and 45-50% if the case proceeds to trial. This structure aligns our interests with yours—we only get paid when you do.
Don’t let a disability denial cost you your job and your rights. Call (866) 646-6676 or contact us online for a free consultation.
FAQs
What happens if my employer never told me about my CFRA leave rights?
Your employer’s failure to provide required CFRA notices creates a separate legal violation that strengthens your wrongful termination case. California regulations require employers to give written notice of CFRA rights when you request leave or when they learn you may need it. Missing notices can extend filing deadlines and demonstrate your employer’s pattern of disregarding legal requirements.
Can my employer demand to see my entire medical history?
You have the right to refuse overly broad or invasive medical information requests from your employer. While employers can request medical certification verifying your need for leave or accommodations, they cannot demand your entire medical history or unrelated health information. Your healthcare provider should only disclose information directly relevant to your work restrictions.
What if I need more time off after my 12 weeks of CFRA run out?
Additional leave beyond CFRA’s 12-week limit may still be required as a reasonable accommodation under the ADA or FEHA. Your employer must engage in the interactive process to discuss extended leave rather than automatically terminating you when CFRA expires. Courts consider your job duties, your employer’s size and resources, and your anticipated return-to-work timeline.
Do part-time employees get the same disability protections as full-time workers?
Part-time employees receive the same legal protections as full-time workers if they meet eligibility requirements. For CFRA and FMLA, you need 1,250 hours worked in the previous 12 months, regardless of your employment status. ADA and FEHA protections apply without hour requirements.
Can my employer force me to use my vacation time during medical leave?
Your employer can require you to use accrued vacation or paid time off concurrently with unpaid CFRA or FMLA leave if company policy permits. However, they cannot force you to exhaust paid sick leave if you prefer to save it. This requirement doesn’t reduce your 12-week protected leave entitlement.
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