Can I Collect Workers’ Compensation and Social Security Disability at the Same Time?
If you’ve been injured on the job and are unable to work, you may be wondering if you can receive both Workers’ Compensation and Social Security Disability Insurance (SSDI) benefits. The short answer is yes, it’s possible—but there are important limitations and rules you need to understand to avoid surprises and delays.
Understanding the Two Programs
Workers’ Compensation is a state-based program that provides wage replacement, medical care, and rehabilitation services to employees who suffer job-related injuries or illnesses. It’s typically paid by your employer’s insurance.
Social Security Disability Insurance (SSDI) is a federal program administered by the Social Security Administration (SSA) for individuals who are unable to work due to a severe medical condition expected to last at least 12 months or result in death.
While both programs provide benefits to disabled workers, they come from entirely different sources and operate under different rules.
Can You Receive Both?
Yes, you can receive both types of benefits at the same time—but your SSDI benefits may be reduced.
This is called the “Workers’ Compensation Offset.” According to Social Security rules, your combined monthly income from SSDI and Workers’ Comp cannot exceed 80% of your average current earnings before you became disabled. If the total exceeds that threshold, your SSDI payment will be reduced accordingly.
For example:
If your average monthly earnings before becoming disabled were $3,000,
You cannot receive more than $2,400 per month from both programs combined.
This offset remains in place until:
You reach full retirement age and SSDI becomes regular Social Security,
Your Workers’ Comp payments stop or change,
Or you receive a lump sum settlement (which requires special consideration and legal planning).
Lump Sum Settlements and the Offset
If you settle your Workers’ Compensation case with a lump sum, it could still impact your SSDI benefits. The SSA will calculate how the lump sum would have been paid out monthly and may reduce your SSDI accordingly.
However, with the help of an experienced attorney, you can structure your settlement in a way that may minimize the impact on your SSDI benefits. This often includes language that spreads the lump sum over the rest of your expected disability period.
Other Important Considerations
Medicare eligibility: After receiving SSDI for 24 months, you become eligible for Medicare, which may coordinate with Workers’ Comp coverage.
Taxes: In most cases, Workers’ Compensation benefits are not taxable. However, the portion of SSDI that is offset due to Workers’ Comp may become taxable depending on your income.
SSI is different: If you’re applying for Supplemental Security Income (SSI), the rules are stricter. Most Workers’ Comp payments will reduce or eliminate your SSI eligibility.
Why You Should Get Legal Help
Navigating the intersection of Workers’ Compensation and Social Security Disability is complicated. Mistakes in reporting, timing, or settlement language can cost you thousands of dollars in lost benefits.
At Nelson, Bryan, and Cross, our attorneys understand both systems. We will:
Help you apply for SSDI while receiving Workers’ Comp
Structure your settlement to reduce the offset
Advise you on your long-term benefit strategy
If you’ve been injured on the job and can no longer work, don’t try to figure this out alone. The coordination between state and federal benefits can be tricky—but we’re here to help.
Contact us today to schedule your free consultation. We’ll guide you through every step of the process to ensure you receive the full benefits you’re entitled to.
