Questions we frequently get when an injured worker is cleared to return to work on light or modified duty are: “Do I have to accept this light duty job at a charity? Do I have to take a job that is nothing like my regular work?”
For example, imagine this hypothetical story: A truck driver is injured at work. Once he is cleared for light duty, instead of driving, he’s told to go sort clothes at a local thrift store. Or consider a janitor who is asked to stop cleaning and instead sit in an office, answering phones. These types of placements are often called alternative light duty jobs—and when they involve work at a nonprofit or charity, they’re referred to as funded employment.
What Is Funded Employment in Workers’ Compensation?
In “funded employment,” also called subsidized employment, the workers’ compensation claimant works for a new employer, but the time-of-injury employer pays the claimant‘s salary and its insurer pays any workers’ compensation benefits that are due. In other words, your employer (or their insurance carrier) “funds” your wages while you temporarily work at a nonprofit, charity, or community organization. You are technically not doing your regular job, but the arrangement is designed to get you back into the workforce in some capacity so the carrier does not have to pay total disability wage loss benefits.
What the Courts Have Said
Some injured workers have challenged this arrangement, arguing that being assigned to a charity is not a “real” job or not appropriate under Pennsylvania’s workers’ compensation laws.
However, the Pennsylvania Workers’ Compensation Appeal Board held that it is a legitimate way to bring an injured claimant back to work and reduce their disability from total to partial. Sladisky v. W.C.A.B. (Allegheny Ludlum Corp.), 44 A.3d 98 (Pa. Cmmw. 2012). Again in 2016 the Pennsylvania Workers’ Compensation Appeal Board confirmed that these assignments can be appropriate. In the Shopf v. Dart Containers decision, the injured worker was offered light duty work at a charitable organization. The Board rejected the argument that such work was improper and found that this type of funded employment could be used to meet the employer’s obligation to offer suitable work. (See Shopf decision summary here.)
What To Do If You’re Offered Funded Employment
If you’ve been injured at work in Pennsylvania and are offered light duty at a charity or in a role very different from your normal job, here are some important steps:
- Don’t Refuse It Outright
Flatly refusing the position can risk your benefits being cut off. These placements are legally recognized, so it’s best to approach them strategically.
- Ask About Workers’ Compensation Coverage at the Offsite Job
If you are assigned to a charity or nonprofit, confirm whether that organization carries its own workers’ compensation insurance.
- If you get hurt again at the charity, your new claim may need to go through the charity’s workers’ comp carrier—not your original employer.
- Clarify Who Your Supervisor Really Is
Ask whether the person you are reporting to is employed by the charity or whether they are connected to your employer’s insurance company. Understanding this chain of command is important for protecting your rights.
- Remember It’s Temporary
These placements are usually short-term. Sometimes they are used by employers and insurers as a way to pressure injured employees into quitting or into settling their workers’ compensation claims. Knowing this can help you stay focused and make careful decisions.
Key Takeaway
Being offered alternative light duty at a nonprofit or in a completely different role can be confusing and stressful. Pennsylvania law allows these funded employment placements, but you still have rights. Make sure you understand the details before making any decisions.
If you’re facing this situation, it’s smart to get legal advice tailored to your case. A workers’ compensation attorney can help you protect your benefits while navigating light duty or funded employment offers.