What exactly is "tibs"? Is this a work related injury? Please provide more information so you can be provided with an accurate answer based on your situation.
I think this poster just needs to talk to his attorney. What does he think we could do, fax him back some money or advice or something?
If he broke his arm on the job or off, and went back to work, even light duty, he was back on the company's payroll, that's the only thing they could legally be doing with someone who was on their property working.
If it was an on the job injury, he went off worker's comp (the 66% of his regular pay) as soon as he resumed work, even light duty work. If this was not an on the job injury, they don't have to let him do anything, and he's very lucky they didn't just fire him outright after giving him FMLA if he was eligible for it. That's why I think it must have been a work related situation. It must also have been a very serious break to warrant a 12% permanent disability.
If they needed to do so, the company could very well lay him off due to lack of work while he was working light duty. He would file for unemployment insurance, and might or might not be approved for it, depending on the situation. Likely he'd be approveable, if he was available and able to the same extent that he was while working.
If his worker's comp claim was settled, and he received a 12% disability rating, they'd have to pay it to him either weekly or in a lump sum. It's awfully hard to make anything of this without a lot more information, which the OP doesn't seem to want to provide.