With the holidays approaching, you might feel the pinch of living on workers’ compensation benefits. Many injured workers find their benefits don’t stretch as far as their regular paychecks. Picking up a side job might cross your mind, especially if you’ve returned to work with restrictions that limit your earning potential.
Before jumping into a side hustle, though, you need to know how it could affect your benefits.
No restrictions to having a side hustle
Working a second job while receiving workers’ compensation benefits isn’t illegal in Minnesota. However, there are a few conditions.
State law requires you to report any income you earn while receiving workers’ compensation benefits. This includes any additional income from side hustles or part-time work. You can lose your workers’ comp benefits if you don’t report any extra income you receive.
Other things you’ll need to do before getting part-time work are:
- Tell your employer about your plans
- Inform your workers’ compensation insurance provider
- Get written approval from your doctor
Remember that your work restrictions apply to all jobs—if your doctor limits you to light duty, this applies to your side hustle as well.
Possible side effects of side hustles
Take note that getting a side hustle or second job may affect your benefits. The compensation you receive can go down based on your additional earnings. Even if your side hustle is online, it can still impact your benefits. The key factor isn’t the location but the extent the side hustle demonstrates your ability to work.
If your injury prevents you from performing your regular job duties but you can earn more with a side hustle, it could raise questions about your reported work capacity or injury severity. In a worst-case scenario, it may even expose you to workers’ comp fraud accusations.
Do things right to safeguard your benefits
Starting a side hustle or getting a part-time job while receiving workers’ compensation requires careful consideration and open communication with all parties involved. Consulting a workers’ compensation attorney can help you understand how additional income might affect your benefits. They can also assist you in following proper procedures so you can avoid mistakes that may cost you your benefits.