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If you’ve applied for long-term disability (LTD) or Social Security Disability Insurance (SSDI), you may think that driving for Uber, picking up freelance projects, or selling crafts on Etsy is harmless. After all, it’s flexible, sporadic, and usually not a full-time income. But here’s the problem: gig work and part-time jobs still count as work, and they can seriously damage your disability claim.
The Common Misconception: “It’s Just a Side Hustle”
Many claimants believe that small, flexible jobs don’t count as “real” work. They think:
- “I’m just earning a little extra to get by.”
- “It’s not full-time, so it shouldn’t matter.”
- “I’m not making much money — this isn’t substantial.”
But in the eyes of your disability insurer or the SSA, what you’re doing matters more than what you’re earning. If you’re performing activities that look like work, it could contradict your claim of being disabled.
Disability Is Based on Capacity — Not Just Income
Both LTD policies and SSDI use definitions of disability that focus on your ability to work, not just your current income.
Social Security defines disability as the inability to engage in “substantial gainful activity” (SGA), which in 2025 generally means earning more than $1,550 per month (or $2,590 if blind). But even below that amount, SSA can still deny your claim if the type of work you’re doing suggests you’re capable of working.
LTD insurers may define disability as the inability to perform your “own occupation” or “any occupation,” depending on how long you’ve been on claim. If you’re performing job duties — even part-time or inconsistently — that resemble paid employment, the insurer may argue you’re no longer disabled under the policy.
The bottom line: It doesn’t have to be 40 hours a week or a high-paying job to disqualify you from benefits.
Why It’s Harder to Prove You Can “Only” Work Part-Time
Some claimants think they’re being cautious by only working a few hours here and there. But ironically, it’s often harder to prove that you’re only capable of part-time work than to show you can’t work at all.
Here’s why:
- SSA and insurance companies may assume you’re intentionally limiting your hours to qualify for benefits.
- They may argue that if you can work a little, you could likely work more — and are choosing not to.
- They often treat any ability to work as proof that you’re not “totally disabled,” especially if your job involves transferable skills.
You would need very specific documentation from your treating physicians to convince them otherwise.
Gig Work Can Be Especially Risky
Unlike traditional part-time employment, gig work can be harder to track. This might lead some claimants to think they can do it without being noticed. But insurers and SSA have ways of finding out:
- Income reported on tax returns or 1099 forms
- Public business listings or sales platforms (e.g., Etsy, eBay, Fiverr)
- Social media posts or client testimonials
- Bank deposits linked to gig income
Even if you don’t think the work is consistent or profitable, the very act of doing it can be used as evidence against your claim.
RELATED POST: Disability Benefits Are Not a Supplement to Part-Time Work
Real-World Example: When Selling Online Goes Too Far
Imagine Sarah, who has chronic fatigue syndrome and is applying for LTD benefits. To stay busy and make a little extra cash, she sells handmade jewelry on Etsy. She only fills a few orders a month, but she updates her shop regularly, responds to customer messages, and shares her products on social media.
Her insurer finds her Etsy store and denies her claim, arguing that her ability to manage inventory, fulfill orders, and market her products proves she is capable of sedentary work. From their perspective, she’s running a small business — and that contradicts her claim of total disability.
Talk to Your Doctor Before You Talk to a Client
If you’re thinking about doing gig work or taking on a part-time role, it’s essential to discuss it with your treating physician first. Your doctor can help assess whether the activity is medically appropriate for your condition. This is something your attorney cannot and should not decide for you.
Once you have that conversation, a disability attorney can help evaluate the risks and strategize accordingly. We often advise clients to err on the side of caution and avoid any work activity while a claim is pending.
Protecting Your Claim Means Avoiding Mixed Messages
Every time you take on a side gig or part-time task, you risk sending a mixed message to the people reviewing your claim. Even a few hours a week can raise questions that are difficult to overcome later in the process.
Before you pick up a delivery shift, freelance project, or gig platform job, ask yourself:
- Would this activity suggest I’m capable of more than I’m claiming?
- Could this be interpreted as proof I can work in some capacity?
- Do I have medical documentation supporting why I can only do this and nothing more?
If you don’t know the answer — or if the activity could put your benefits in jeopardy — pause and get advice before moving forward.
At the Ortiz Law Firm, we help disability claimants protect their rights and avoid costly mistakes. If you’re dealing with a denial, we’re here to help you navigate the next step with confidence. Contact us online or call (888) 321-8131 today for a free case evaluation.
