Can I Receive Social Security Disability Benefits While Receiving Workers’ Compensation in Alabama?

Can I Receive Social Security Disability Benefits While Receiving Workers’ Compensation in Alabama?

One of the most common questions we hear from injured workers whose injury is so severe that they are thinking of applying for Social Security Disability benefits is this:

“Can I apply for Social Security Disability benefits while I am receiving workers’ compensation benefits?”

The short answer is yes. In many cases, injured workers in Alabama are eligible to receive both workers’ compensation benefits and Social Security Disability benefits at the same time.

However, there are important rules that determine how much you will receive and how the two systems interact.

Workers’ Compensation Does Not Disqualify You From Social Security Disability

Workers’ compensation benefits are not considered earned income by the Social Security Administration. Because of this, receiving workers’ compensation benefits does not prevent you from applying for or receiving Social Security Disability benefits.

Many workers who suffer a serious job injury ultimately apply for Social Security Disability benefits because their injury prevents them from returning to the workforce on a full-time basis.

The Workers’ Compensation Offset

Although you may receive both benefits, Social Security does place a limit on the total amount of disability income a person can receive.

Generally speaking, the combined total of your workers’ compensation benefits and Social Security Disability benefits cannot exceed 80% of your average earnings before you became disabled.

In Alabama, injured workers typically receive temporary toal disability (ttd) benefits, which are two-thirds (2/3) of their average weekly wage in temporary total disability benefits while they are unable to work.

Because of this, the Social Security Administration will often reduce (or “offset”) the amount of Social Security Disability benefits you receive while workers’ compensation benefits are being paid.

Once your workers’ compensation benefits stop or are reduced, the Social Security Administration should be notified so that your Social Security Disability payment can be adjusted accordingly.

 

Workers’ Compensation Settlements Can Affect Your Social Security Benefits

Another important issue arises when a workers’ compensation claim is settled.

How a workers’ compensation settlement is structured and written can have a significant impact on your Social Security Disability benefits. If the settlement is not properly drafted, it may result in a larger offset than necessary and reduce the amount of Social Security benefits you receive.

For this reason, workers’ compensation settlements involving someone who is receiving or applying for Social Security Disability benefits should be carefully reviewed and properly structured, and this is a big reason why workers who suffer catastrophic injuries might want to have the assistance of an attorney who handles both Alabama workers compensation and Social Security Disability claims.

Why It Is Important to Understand Both Systems

Workers’ compensation and Social Security Disability are two separate systems, but in many cases they operate side-by-side when someone has suffered a serious injury.

Understanding how these benefits interact can make a significant difference in the amount of compensation a person ultimately receives.

At Powell and Denny, our attorneys have experience handling both Alabama workers’ compensation claims and Social Security Disability claims, which allows us to help injured workers navigate the interaction between these two systems.

 

If You Have Questions About Your Benefits

If you have suffered a serious job injury and are wondering whether you may also qualify for Social Security Disability benefits, it may be helpful to speak with an attorney who regularly handles both types of claims.

A consultation can help you understand:

• whether you may qualify for Social Security Disability benefits
• how those benefits may interact with your workers’ compensation claim
• and how potential settlements may affect your future benefits.

If you have suffered a job injury and you have questions about your rights and benefits under Alabama’s workers compensation laws-in conjunction with Social Security Disability law -don’t hesitate to contact and speak with one of the experienced Alabama Workers Compensation and Social Security Disability attorneys at Powell and Denny today for a free consultation. Appointments are available in person, or virtually via Zoom if more convenient.  Powell and Denny would appreciate the opportunity to help.  And remember, there is no fee unless you win.

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Powell and Denny have been selected as one of the Best Law Firms by U.S. News and World Report for each of the last 7 years, have been selected as one of Birmingham’s Top Lawyers by B-Metro Magazine for the last 3 years, have been selected by The National Advocates as one of the Top 20 Workers’ Compensation Firms (plaintiffs) and Powell and Denny, P.C.-has been selected as one of the “Best of the Best” law firms by The American Registry

Mr. Denny is AV rated by Martindale Hubbard (the highest rating possible) and Mr. Powell has been rated as Superior by The National Registry and selected as a Lawyer of Distinction.

+ Powell and Denny have successfully represented injured workers from Birmingham, Huntsville, Florence, Muscle Shoals, Tuscumbia, Athens, Decatur, Town Creek Ardmore, Hartselle, Madison, Toney, Scottsboro, Ft. Payne, New Hope, Guntersville, Albertville, Boaz, Ashville, Anniston, Gadsden, Cullman, Jasper, Gardendale, Morris, Kimberly, Centerpoint, Leeds, Tarrant City, Fairfield, Hueytown, Bessemer, Adger, Tuscaloosa, Cordova, Alabaster, Pelham, Harpersville, Opelika, Phenix City, Montgomery, Clanton, Calera, Enterprise, Monroeville, Mobile, Evergreen, Centreville, Brent, West Blocton, Woodstock, Brierfield, Lakeview and towns and cities in between.

Can I Receive Social Security Disability Benefits While Receiving Workers’ Compensation in Alabama