If you’ve been seriously injured or developed a long-term medical condition that prevents you from working, you may qualify for both Social Security Disability Insurance (SSDI) and workers’ compensation (WC) benefits. While you may be able to get both at the same time, there are important rules about how these benefits work together—and how one may affect the other.
Understanding the Basics
What Is Workers’ Compensation?
Workers’ compensation is a state program that provides benefits to employees who are injured on the job. It typically includes:
- Medical treatment
- Temporary or permanent wage replacement
- Vocational rehabilitation
- Lump-sum settlements for permanent injuries
What Is Social Security Disability?
SSDI is a federal program administered by the Social Security Administration (SSA). It provides monthly income to people who can no longer work because of a serious medical condition, regardless of whether the condition was caused by work.
To qualify for SSDI, you must meet the SSA’s strict definition of disability and have earned enough work credits through past employment.
Can I Get Both SSDI and Workers’ Comp?
Yes, you can get both SSDI and workers’ comp benefits at the same time, but there’s a catch. The total amount of the combined benefits is subject to a “workers’ compensation offset” under federal law.
The Workers’ Comp Offset Rule
If the total amount of your SSDI and workers’ compensation benefits combined exceeds 80% of your average pre-disability earnings, the SSA will reduce your SSDI benefits to bring you under the 80% cap.
If you receive a lump-sum settlement from workers’ compensation, the SSA may still apply an offset to your SSDI benefits—depending on how the settlement is structured. They’ll usually divide the lump sum over your life expectancy or a certain number of months to determine how much to offset each month.
For example, let’s say your average income before becoming disabled was $4,000 per month.
- 80% of that is $3,200.
- You receive $2,500 per month from workers’ comp.
- You’re also approved for $1,200 a month in SSDI.
- Combined, that’s $3,700—more than the $3,200 cap.
- The SSA would reduce your SSDI payment by $500, bringing your total monthly benefit to $3,200.
This reduction will continue until your workers’ compensation benefits end or change.
Get Help with Your Social Security Disability Claim
Do you have questions about Social Security Disability Insurance claims? The Ortiz Law Firm can help. We focus on protecting the rights of disability claimants and helping you get the support you need to move forward. Contact us online or call (888) 321-8131 for a free case evaluation.
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