Will Workers' Comp Disqualify Me From SSD Benefits?

Posted By Katz Leidman Grossman Wolfe & Freund || 12-Feb-2015

When you have been injured in a work-related accident, or when you are suffering from an occupational disease that is expected to last more than a year, or result in death, you need as much compensation as you can get.

If you intend to apply for workers' compensation benefits, you may be wondering if receiving workers' compensation would disqualify you from receiving Social Security Disability benefits.

Social Security Disability benefits are paid to people who have a serious medical condition that is expected to last at least one year, or end in death. This means that in severe work-related accident cases, a worker may qualify for both workers' compensation benefits and SSD benefits.

How Workers' Comp Affects SSD Benefits

While disability payments from a private pension will not affect a person's Social Security Disability benefits, workers' compensation benefits may reduce a person's Social Security benefits.

Workers' compensation benefits are paid to injured workers because of a job-related accident or illness. Workers' comp benefits may be paid through state or federal workers' compensation agencies, or by employers or employers' insurance carriers.

If you receive Social Security Disability benefits and workers' compensation benefits, the total amount of benefits that you receive cannot exceed 80% of your average earnings right before you became disabled.

Essentially, if the total amount of benefits you are receiving exceeds the 80% threshold of your average earnings, the excess amount shall be deducted from your Social Security Disability benefits.

If there is any change to the amount of your workers' compensation payments, or if you stop receiving workers' compensation, be sure to inform the Social Security Administration. It is very important that you tell the SSA if your workers' compensation benefits increase, decrease, or cease since any change in your workers' compensation benefits will likely have an impact on your SSD benefits.

Looking to file a workers' compensation claim in New York City? Contact Katz Leidman Grossman Wolfe & Freund to schedule a free case evaluation!