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Will My Employer Find Out About My Lawsuit?

Your employer usually learns about an injury case only if you claim lost wages, because proving that claim requires payroll records from them. Otherwise most employers never hear about it.

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Usually not, unless you are claiming lost wages. A personal injury claim against another driver’s insurance company does not involve your employer at all, and nobody notifies them. If a lawsuit is filed, the complaint becomes a public court record, but employers do not sit around searching court indexes for their employees’ names. The one thing that reliably brings your employer into the picture is a wage loss claim, because proving that you lost income means getting payroll records and sometimes a short statement from your supervisor.

The decision that matters in real files is whether the lost wages are worth the contact. A warehouse worker in Van Nuys who missed six weeks after a crash on the 405 has a wage claim of several thousand dollars, and that claim cannot be proven without a letter from the employer confirming the dates and the rate of pay. A salaried manager who used sick days and lost nothing on paper has no wage claim to make, and the employer never needs to be involved. We look at this on the first call, because a client who is nervous about their job should know early whether the case can be handled without any employer contact.

Will my employer find out about my personal injury lawsuit?

Only if the case needs something from them. An injury claim settled with an insurance company involves no employer contact unless you claim lost wages, which requires payroll verification. If a lawsuit is filed, the defense can subpoena employment records when wages or your ability to work are at issue. Without a wage claim, most employers never learn about the case. Your immigration status, by the way, is inadmissible in a California injury case under Evidence Code 351.2.

How an employer gets involved, and how it doesn’t

Wage loss is the main route. To collect lost income, the insurance company wants proof: pay stubs, W-2s or tax returns, and a wage verification form signed by the employer stating your position, your rate and the dates you missed. The form says nothing about fault, nothing about the amount of the claim and nothing about the lawsuit beyond the fact that you were in an accident. Most employers fill it out as a routine HR task, like a loan verification.

If the case is filed and you are claiming lost earnings or a reduced ability to work in the future, the defense attorney can serve a records subpoena on your employer under California’s discovery rules, which reach any matter relevant to the case under Code of Civil Procedure 2017.010. You receive notice before the subpoena is served and can object. In practice the subpoena asks for attendance records, payroll and sometimes the personnel file. It arrives at HR with a case caption on it, so at that point the company knows there is a lawsuit.

A deposition of your supervisor is rare in an ordinary injury case and happens mostly when the defense disputes that you missed work or claims you were already on the way out of the job.

Without a wage claim, none of this happens. The medical records come from your doctors. The crash facts come from the police report, photos and witnesses. Nothing about the case touches your workplace.

What the insurance company does with your job

The adjuster will ask about your work early, and not out of curiosity. If you went back to work the day after the crash, the carrier will argue the injury was minor. If you missed three months, the carrier will ask whether the time off was medically necessary or whether you simply did not feel like going in. If your job is physical, a drywall installer in Pacoima for example, the carrier will want the doctor’s work restrictions in writing, because a restriction that says “no lifting over ten pounds” is proof of wage loss and a doctor’s note that says nothing about work is not.

The carrier also looks at whether you kept working with the injury and uses that against you in a different way: if you could frame houses with a herniated disc, how bad could it be? The honest answer, that you had no sick leave and a mortgage, is one a jury understands, but it has to be said plainly and backed up by the medical records.

What you should do now

Decide with your attorney whether to claim lost wages at all. If the amount is small and your workplace situation is delicate, it is sometimes worth leaving it out of the claim and keeping the case entirely between you, your doctors and the insurance company. That is a legitimate choice and nobody at the carrier will question it.

If you are claiming wages, tell your employer the simple version yourself before a form shows up: you were in a car accident, you have a claim with the other driver’s insurance, and they may receive a short form to confirm your dates and pay. Employers react far better to a heads-up than to a subpoena from a law firm.

Keep your own records too. Pay stubs from before and after the crash, your schedule, texts to your manager about missing shifts. The more you can document on your own, the less has to come from the company.

Follow your doctor’s work restrictions. If the doctor says light duty and you go back to full duty because your boss asked, you have both weakened the wage claim and risked re-injury. Get the restriction in writing and give a copy to HR.

Common mistakes

The first is lying to the employer about why you are out. People say they have the flu because they do not want to explain a car crash, then the wage verification form says “auto accident” and the trust is gone. Say what happened.

The second is posting about the case where coworkers can see it. A comment about “my lawsuit” in a group chat has a way of reaching management, and the only thing worse than an employer hearing about a lawsuit is hearing about it secondhand.

The third is assuming your employer can retaliate because you sued someone else. Firing an employee for pursuing an injury claim against a third party is not something most employers would try, and an employer who did would be creating a separate legal problem for itself. That is a different question if the defendant is your employer or a related company, which turns the matter into a workers’ compensation case with its own rules.

The fourth is forgetting that a filed complaint is public. If you are in a job where a background search is routine, a civil case with your name on it may appear. It shows that you were a plaintiff in a personal injury case, nothing about your medical condition, and most employers see that as a crash victim, not a problem.

Questions people ask next

Can my employer see my medical records from the case? No. Medical records are exchanged between the parties in the lawsuit and are not sent to your employer. The wage verification form asks about dates and pay, not diagnoses.

Will my employer be told the settlement amount? No. Settlements are confidential between the parties and are not filed with the court or reported to anyone else.

What if I was driving for work when the crash happened? The injury then goes through workers’ compensation, which does involve your employer and its insurer, and you can still bring a separate claim against the other driver.

Manoukian Law Firm handles car, truck, motorcycle, rideshare and pedestrian injury cases throughout Los Angeles County, with the attorney handling each file personally, including the decision about whether and how to involve an employer. For a free consultation about your situation, call (818) 818-5031.

Last reviewed by Vaheh Manoukian, Esq., founding attorney, Manoukian Law Firm.

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