Will the Dollar Tree Store Closures Affect My Workers’ Compensation?

Dollar Tree Announced It Will Close Hundreds of Dollar Tree and Family Dollar Stores. Find Out How It May Affect Your Workers’ Compensation Claim.

 

Any Dollar Tree Store Closures Should Not Affect Your Dollar Tree or Family Dollar Work Injury Case

 

Yesterday, Dollar Tree, Inc., based in Chesapeake, Virginia, announced that it will close, relocate, or change the names of many of its stores. 

 

Specifically, Dollar Tree will close approximately 600 Family Dollar stores in the first half of fiscal year 2024. Dollar Tree purchased Family Dollar for billions of dollars in 2015. 

 

In addition, Dollar Tree will close approximately 370 Family Dollar and 30 Dollar Tree stores over the next several years as each store’s lease term expires. 

 

This news may concern the more than 190,000 Dollar Tree employees, many of whom may have pending workers’ compensation claims in Virginia, Maryland, and other states. Some of you with open claims may still work for Dollar Tree in a light-duty position. 

 

Indeed, the Occupational Safety and Health Administration (OSHA) has fined Dollar Tree millions of dollars for safety violations. These infractions included blocked aisles, unsafe box stacking, blocked electrical panels, blocked fire extinguishers, and other hazardous work areas.

 

However, the news that Dollar Tree will close many stores under its name and the Family Dollar Brand will not end your open workers’ compensation case with this company, even if you lose your job. 

 

Here is why.

 

Dollar Tree remains in business and has active workers’ compensation insurance coverage. Indeed, Safety National Casualty Corp provides coverage to more than 200 Dollar Tree locations in Virginia, including distribution facilities. This same policy covers many Family Dollar stores in this state. 

 

Closing your store or terminating your employment does not affect this coverage. Dollar Tree and its insurer will remain liable for all workers’ compensation benefits you are entitled to, including lifetime medical treatment, temporary total disability (TTD), temporary partial disability (TPD), and permanent partial disability (PPD) payments. 

 

Instead of hurting your work injury claim, Dollar Tree’s announcement of store closures may increase the value of your workers’ compensation claim. 

 

For example, you may have a change-in-condition claim seeking the reinstatement of wage loss payments if Dollar Tree terminates your employment while you have restrictions. 

 

Further, Dollar Tree may be more open to negotiating workers’ compensation settlements to remove potential liabilities from its balance sheet and strengthen its finances. In the past, large employers, such as airlines (American Airlines, United Airlines, Delta, etc.) and trucking companies, started settlement talks with us and our clients when trying to reduce payroll or headcount. Settlement is seen as an option when a company has announced hiring freezes, layoffs, or furloughs. 

 

A lump sum settlement can provide financial security and flexibility that weekly payments do not. 

 

Finally, if Dollar Tree closes your store, you can negotiate a severance agreement as part of a global workers’ compensation settlement. The potential to recover money because of the employment separation depends on any potential employment law claims you may have.

 

If you have questions about workers’ compensation, call us at (804) 251-1620 or (757) 810-5614. We represent injured employees throughout the retail sector (Dollar General, Amazon, Walmart, Target, etc.) and can help you explore your legal options.