Can I Collect Workers’ Compensation and Disability Benefits at the Same Time?

Workers’ compensation and Social Security Disability Insurance (SSDI) provide millions of Americans with vital financial support annually. It’s common for injured or disabled individuals to have many questions about how both of these complex systems work on their own and together.

While these programs aim to provide financial assistance to those unable to work due to injury or illness, the interaction between them, particularly when it comes to reduced benefits, requires careful consideration. If you’re considering applying for workers’ compensation while on disability, here’s what you need to know.

Understanding Workers’ Compensation

Workers’ compensation is a state-regulated insurance program designed to compensate employees for work-related injuries or illnesses. It covers medical expenses, rehabilitation costs, and a portion of lost wages. Its primary objective is to provide timely support to injured workers, ensuring they can recover and return to work when possible.

The Role of Social Security Disability Insurance (SSDI)

SSDI, administered by the federal government, offers benefits to individuals who cannot engage in substantial gainful activity due to a qualifying disability. Eligibility depends upon meeting Social Security’s stringent definition of disability, which includes the inability to work in any significant capacity due to a condition expected to last at least one year or result in death. Work credits accrued through prior employment covered by Social Security are also a prerequisite for SSDI eligibility.

Can You Receive Both Workers’ Comp and SSDI?

You may qualify for workers’ compensation and SSDI benefits simultaneously, but the interaction between these programs involves reducing (or offsetting) benefits. This means that the total combined workers’ compensation benefits and SSDI cannot exceed 80% of the individual’s average earnings before the disability occurred. If the combined benefits exceed this threshold, SSDI payments may be reduced to ensure the total does not surpass what you would have earned if they were still working.

Navigating this offset requires careful coordination between the workers’ compensation insurer and the Social Security Administration (SSA). Beneficiaries must inform both parties about their receipt of benefits from the other program to ensure accurate benefit calculations. Failure to disclose information can lead to overpayments, which may require repayment or adjustment of benefits in the future.

To avoid offsetting your benefits, you must carefully plan your financial strategies when applying for workers’ compensation and SSDI. Understanding how these benefits interact can help you make informed decisions about available financial resources during periods of disability.

Experienced Lawyers Serving the Triad Community

When applying for disability benefits and workers’ compensation, having a lawyer from Daggett Shuler in your corner can make a world of difference. We provide professional guidance throughout the claims process, from gathering medical documentation to advocating for you during appeals. With Daggett Shuler, you have a dedicated advocate committed to securing your rights and easing the stress of navigating disability and workers’ compensation claims.

Contact us today by submitting a form online or calling our office at 336-724-1234 for a free consultation.