How Does Workers’ Compensation Affect a Disability Claim?

Workers Compensation will not affect the merit of your claim.

While your workers’ compensation settlement may have an impact on your SSDI award, it does not affect the merit of your disability claim.  In other words, it does not have a negative impact to your claim.

How does my worker’s compensation settlement affect my disability award?

You are allowed to receive both workers’ compensation and Disability Insurance Benefits.  However, the total amount of your benefits cannot exceed 80% of your average current earnings before you became disabled.  If it does, the excess amount is reduced from your disability benefits.

Note, however, that the combined payments after the reduction will never be less than the amount of SSDI benefits before the reduction.

Workers’ compensation payments will offset disability payments until age 65.

If your workers’ compensation benefits offset your SSDI payments, they will continue to do so until you reach age 65, or until your workers’ compensation payments stop, whichever comes first.

Is there anything else that will offset my Disability Insurance Benefits award?

In addition to reducing the amount of your Disability Insurance Benefits award by your workers’ compensation settlement, Social Security will also reduce your award by any public disability benefits you have received—that is, non-job-related benefits paid for by a federal, state, or local government for your disability.  Examples include civil service disability benefits and state temporary disability benefits.

Other public benefits do not have an impact on your disability award.  Examples include Veterans Administration benefits and Supplemental Security Income (SSI).  Visit the SSA website for a more thorough discussion of the impact of Workers’ Compensation on Disability Insurance Benefits.