There are many federal and state laws that govern the award of public benefits to disabled workers. Keeping track of these laws can be difficult. If you were hurt in a workplace accident, we can help you understand how a workers’ compensation award may affect your Social Security Disability Insurance (SSDI) benefits.
Collecting Workers’ Compensation Benefits May Limit Social Security Disability Payouts
It is fairly common for a worker injured in a job-related accident to collect workers’ compensation benefits in conjunction with SSDI. Although there are some differences between workers’ compensation and SSDI, both programs exist to pay injured individuals who are unable to work. Therefore, federal law regulates how much a person may earn in combined benefits in order to avoid double compensation.
The effect of this law is that people who collect workers’ compensation and SSDI may receive limited disability benefits. This limit is called an offset. The offset applies to the Social Security disability benefits of an employee who also earns workers’ compensation or other public benefits that are based on a disability. VA and SSI benefits are not subject to an offset. In other words, Social Security disability benefits will not be reduced because of VA or SSI income.
Offsets Limit a Worker’s Benefits to 80% of Income
The general rule is that if an injured worker earns both SSDI and workers’ compensation (or other disability) benefits, the total compensation will not total more than 80% of his or her average earnings from the time before the disability.
For example, if you earned an average of $1,000 a month before your injury, your combined workers’ compensation and Social Security disability benefits are legally limited to $800 a month. In the event that the combined benefits exceeded $800, your Social Security disability benefits would be reduced until either you turn 65 years old or the other benefits end.
The wages you earned before your injury are calculated using formulas that may vary depending on your situation. Additionally, there can be other complicating factors, such as a lump sum workers’ compensation payment. In the event of a lump sum payment, the amount is prorated to achieve the monthly equivalent of the 80% limit. An experienced attorney can help you understand the amount of benefits you are eligible for based on your previous earnings.
Enlist a Workers’ Compensation Lawyer to Help With Your Claim
If you receive Social Security disability benefits, a workers’ compensation claim could result in an offset. Federal law mandates that you receive no more than 80% of your normal wages. It’s a confusing process to navigate, but the work injury team at The Law Office of Uhrig & Brown can help you through it. Don’t hesitate to reach out to learn about the benefits you qualify for.
