In the realm of workers’ compensation and Social Security disability benefits, understanding your rights and options is crucial, especially if you’ve suffered a workplace injury. Many employees wonder if they can receive disability benefits after settling a workers’ compensation case. The answer is multifaceted and depends on the nature of your settlement and the type of disability benefits you are seeking.
If you have questions or need legal assistance, contact PLBH at (800) 435-7542 for a free legal consultation.
Workers’ Comp and Disability: Not Mutually Exclusive
Firstly, it’s important to know that workers’ compensation and disability benefits are not mutually exclusive. You can often receive disability benefits even after settling a workers’ compensation case. There are different ways to settle a workers’ comp claim, each with implications for your ongoing benefits.
Understanding Different Settlement Types
Settling with a Stipulation and Award means you will continue receiving ongoing benefits, which include payments for medical bills and lost wages due to disability. These ongoing payments compensate you for wage loss caused by disabilities resulting from a workplace injury. The amount and duration of these benefits are determined by state law and typically represent a portion of your pre-injury wages.
Conversely, a Compromise and Release settlement involves agreeing to a lump sum payment intended to cover future medical expenses and disability benefits. Once this settlement is executed, the workers’ comp claim is considered closed, and you will not receive continued disability benefits. This lump sum includes all anticipated future expenses related to the injury.
Social Security Disability Insurance (SSDI) After Settlement
If you are disabled, you may be eligible for SSDI, regardless of whether the disability is work-related. SSDI eligibility requires two main criteria: having an eligible disability and a sufficient work history. An eligible disability is one that prevents you from doing your previous job or any other substantial gainful work and is expected to last at least one year.
Your work history is measured in work credits, earned through wages or self-employment income. The number of work credits needed for SSDI depends on your age at the time of disability. The amount of SSDI benefits you receive is based on your previous income, not the severity of your disability.
The SSDI Offset: Balancing Benefits
If you receive both a workers’ compensation settlement and SSDI payments, federal law limits your total compensation to 80% of your average current earnings. To maintain this cap, the Social Security Administration (SSA) may reduce your SSDI payments. This offset aims to prevent the total sum of your benefits from exceeding the federal limit. The method of offset depends on how you settled your workers’ comp case.
Workers’ Comp and SSDI: Structuring Your Settlement
If you settled with a Stipulation and Award, regular disability payments through workers’ compensation are considered alongside your SSDI benefits. If the combined amount exceeds the 80% threshold, your SSDI payments will be reduced accordingly.
In cases of a Compromise and Release settlement with a lump sum payment, the SSA prorates this amount into monthly payments to determine the offset. The offset continues until the prorated disability payments equal the lump sum settlement. An experienced workers’ compensation attorney can assist in structuring your settlement to minimize the impact of this offset.
Understanding Long-Term Disability Insurance
In addition to SSDI, if you have long-term disability insurance (LTD) through your employer, you can also receive payments if you are unable to work due to disability. LTD typically covers a portion of your salary and may offset its benefits if you receive both workers’ comp and LTD insurance benefits.
Types of Disabilities Under Workers’ Comp Law
Under workers’ comp, disabilities are categorized as either temporary or permanent, and further as total or partial. Temporary disabilities are expected to improve with medical care, while permanent disabilities are long-lasting. Your benefits, whether for temporary or permanent disability, will depend on the nature and extent of your disability.
California’s Approach to Workers’ Compensation
In California, workers’ compensation benefits cover two-thirds of your average weekly wage, subject to a maximum cap. California employs a reverse offset, meaning if your combined disability benefits exceed 80% of your prior wage, it’s your workers’ comp benefits that are offset, not your SSDI benefits. This approach can have significant tax implications.
Seeking Legal Advice
The complexities surrounding workers’ compensation and disability benefits can be daunting. If you’re in a situation where you’re considering a workers’ comp settlement and wondering about your disability benefits, it’s advisable to seek legal counsel. A firm like PLBH, with experienced attorneys, can guide you through these processes, ensuring that your rights are protected and you receive the maximum benefits you are entitled to. Contact PLBH at (800) 435-7542 for expert legal advice and representation in your workers’ compensation and disability claims.