What can I do with an employee who is on workers' compensation but who is part of a work unit I need to lay off?

If a layoff is genuine, and an entire work unit is being laid off, an employee on workers' compensation leave (or with an active claim, but still working) has no more protection than any other employee.

An employer may not, however, use a layoff to target protected workers. Employers are wise to be sensitive to these issues due to potential "132a" claims. Labor Code Section 132a holds that "there should not be discrimination against workers who are injured in the course and scope of their employment." Terminating an employee because of a work-related injury is a type of such discrimination.