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The Global Insight

Can someone be laid off while on disability?

Author

James Olson

Updated on April 07, 2026

Yet most employees in the United States (including in California) are at-will, which means that they can be fired at any time, and for any reason, as long as it is not illegal. This can cause significant anxiety for anyone who takes leave due to a disability. During this time, the employee’s job is protected.

Can you layoff someone on short term disability?

Your employer can lay you off during any period of disability (short or long-term). A layoff is the reduction of a company’s workforce in response to a business strategy or economic condition. It applies to all workers regardless of status.

Can you lay someone off for medical reasons?

Employees are eligible for long-term illness and injury leave if they have been employed at least 90 days with the same employer. Eligible employees can take time off work without pay without risk of losing their job.

Can you be forced to go on disability?

Similar to qualifying for SSDI benefits, your employer doesn’t determine your eligibility for short-term disability benefits through your state’s workers’ compensation program. Your employer can’t directly force you onto short-term workers’ compensation disability programs.

What happens when SDI runs out?

Once you are on SDI, as long as you are still unable to work because of your disability your benefit payments will continue up until the “return to work” date your medical provider listed on your application. If your disability lasts past that date, you and your medical provider must ask to extend your benefit period.

Is it illegal to lay off an employee with a disability?

The main area of exposure for employers is when the employee out on leave is the only (or one of the only) employees subject to the layoff. It is generally illegal to terminate an employee due to a disability or medical condition.

Is the Americans with Disabilities Act a law?

The Americans with Disabilities Act (ADA) is a civil rights law that prohibits discrimination against individuals with disabilities. The ADA’s definition of “disability” is a legal term, not a medical one. It is significantly different from how disability is defined for the purposes of Social Security Disability benefits.

Can a person on medical leave be laid off?

Because laying off an employee who is on medical leave is a high-exposure termination, it is important to consult with your HR Professional or legal counsel prior to doing so.

Can a person be fired while on leave for disability?

First, it depends whether you are taking leave under the FMLA or similar state leave law, taking other unpaid leave, or collecting workers’ compensation temporary disability benefits. Whether or not you are collecting short-term or long-term disability (LTD) insurance benefits doesn’t matter – LTD policies offer no protection for your job.