Suffering an injury or illness that keeps you from working can leave you facing financial uncertainty. In many cases, employees wonder whether they can receive workers’ compensation benefits while also applying for disability benefits through Social Security or other programs. While the short answer is yes, it is possible to receive both at the same time, there are limits and rules that affect how much you can collect.

Understanding the difference between workers’ compensation and disability benefits is important. They are designed to serve different purposes, and they interact in ways that can reduce, but not completely eliminate, what you receive. This article explains the basics of both systems, how they overlap, and what you need to know if you’re considering applying for both.

What Is Workers’ Compensation?

Workers’ compensation is a state-run system designed to help employees who are injured or become ill on the job. Employers in most states are required to carry workers’ comp insurance, which pays benefits regardless of fault. It generally means that the injured worker receiving benefits forfeits their right to sue the company, though exceptions may apply. These benefits typically include:

• Coverage for medical treatment related to the injury or illness
• Wage replacement, usually a portion of your average weekly pay
• Temporary or permanent disability payments if you cannot return to work
• Vocational rehabilitation if you need training for a new type of work

Workers’ compensation is limited to injuries or illnesses that are directly related to employment. For example, a back injury from lifting heavy boxes at work would qualify, but an injury from a weekend sports accident would not.

What Are Disability Benefits?

Disability benefits generally refer to federal programs managed by the Social Security Administration (SSA). There are two main types:

Social Security Disability Insurance (SSDI)

This program provides benefits to workers who have paid into Social Security through payroll taxes and become unable to work due to a disability that is expected to last at least 12 months or result in death.

Supplemental Security Income (SSI)

This program is needs-based and provides benefits to disabled individuals who have limited income and resources, regardless of work history.

Both SSDI and SSI require proof of a qualifying disability. Unlike workers’ comp, which covers job-related injuries or illnesses, disability benefits can cover any condition that prevents substantial work, whether or not it was caused by employment.

Receiving Workers’ Comp and Disability at the Same Time

It is possible to receive both workers’ compensation benefits and Social Security disability benefits simultaneously. However, the SSA has an offset rule to prevent individuals from collecting more than a certain percentage of their prior income.

The Offset Rule

Under federal law, your combined income from workers’ compensation and SSDI cannot exceed 80% of your average current earnings before your disability. If the combined amount is higher, SSDI benefits are reduced until the total falls within the allowed range.

For example, if your average monthly income before your injury was $4,000, the maximum combined amount you could receive from workers’ comp and SSDI is $3,200. If your workers’ comp already pays $3,000 per month, SSDI would be reduced so your total does not exceed $3,200.

SSI and Workers’ Compensation

SSI is needs-based, so workers’ comp benefits count as income when calculating eligibility. Receiving workers’ comp may make it harder to qualify for SSI unless your workers’ comp payments are low and your overall financial resources are limited.

State Laws and Workers’ Compensation Benefits

Each state manages its own workers’ compensation system, which means the details of benefits and offsets vary. Some states reduce the workers’ comp payments when a worker also receives disability benefits, while others rely on the federal offset to adjust Social Security payments. An experienced workers’ comp lawyer can help you understand how the rules apply in your state.

Key Differences Between Workers’ Compensation and Disability Benefits

• Cause of disability: Workers’ comp applies only to job-related conditions, while disability benefits apply regardless of where or how the condition occurred.
• Duration: Workers’ comp may provide temporary or permanent benefits, while SSDI is typically long-term until recovery, retirement, or death.
• Funding source: Workers’ comp is paid through employer insurance, while disability benefits come from federal programs.

Why Coordination Matters

Navigating both systems can be complicated. Mistakes in applications, misunderstandings of offset rules, or delays in filing can result in lost benefits. Coordination between a workers’ compensation attorney and a disability lawyer ensures that all benefits are maximized without unintentional reductions.

Practical Tips for Workers

1. Apply for benefits early: The application process for SSDI can take months, so starting early helps avoid gaps in income.
2. Keep detailed medical records: Both workers’ comp and disability benefits require strong documentation of your condition.
3. Understand the limits: Know the 80% rule and how it applies to your income.
4. Work with legal professionals: A workers’ comp attorney can handle negotiations with insurers, while a disability lawyer can represent you before the SSA.

Common Scenarios

• An employee suffers a workplace injury, receives workers’ comp, and later applies for SSDI when it becomes clear the injury will prevent long-term work.
• A worker with an occupational disease such as mesothelioma collects workers’ comp but also qualifies for SSDI because the disease prevents them from working in any capacity.
• A part-time employee injured at work might qualify for SSI if their income and resources are low enough, in addition to workers’ comp benefits.

Call Brandon J. Broderick For Legal Help

Balancing workers’ compensation benefits and disability benefits can be confusing, especially when you’re focused on recovery. At Brandon J. Broderick, Attorney at Law, we understand how these systems overlap and how to protect your right to full compensation. Whether you’re dealing with a workplace injury, long-term illness, or both, our team can guide you through the process.

Contact us today for a free consultation. Let us help you maximize your benefits while you focus on your health and future.