I Was Seriously Hurt at Work and Can’t Work, Can I Receive Workers’ Compensation and Social Security Disability Benefits?

I Was Seriously Hurt at Work and Can’t Work, Can I Receive Workers’ Compensation and Social Security Disability Benefits?

One of the most common misconceptions about serious workplace injuries is that workers’ compensation is the only benefit available to an injured worker.  In reality, many workers who suffer severe injuries may qualify for both:

• Alabama Workers’ Compensation benefits; and
• Social Security Disability benefits.

In fact, some of the most serious workers’ compensation cases eventually lead to Social Security Disability claims as well, and understanding how these two systems work together can be extremely important when dealing with a life-changing workplace injury.

Workers’ Compensation and Social Security Disability Are Different Programs

Although both programs provide benefits to disabled individuals, they serve different purposes.

Workers’ Compensation

Workers’ compensation is designed to compensate employees who are injured on the job.

Potential benefits may include:

• Medical treatment;
• Temporary Total Disability (TTD) benefits;
• Temporary Partial Disability (TPD) benefits;
• Permanent Partial Disability (PPD) benefits; and
• Permanent Total Disability (PTD) benefits.

Workers’ compensation benefits are tied to a workplace injury.

Social Security Disability

Social Security Disability Insurance (SSDI) is a federal program designed to provide benefits to individuals who can no longer engage in substantial gainful employment because of a disabling medical condition.

Unlike workers’ compensation, SSDI does not require a workplace injury.  The focus is whether the claimant is capable of maintaining full-time competitive employment.

Can I Receive Both Workers’ Compensation and SSDI?

Yes.

Many seriously injured workers receive both workers’ compensation and Social Security Disability benefits. The fact that you are receiving workers’ compensation benefits does not automatically prevent you from receiving SSDI benefits.

Likewise, receiving SSDI benefits does not prevent you from pursuing workers’ compensation benefits.  In many serious injury cases, both claims are appropriate.

When Does a Workers’ Compensation Claim Lead to an SSDI Claim?

This often occurs when a workplace injury has long-term consequences.

Examples may include:

• Serious back injuries;
• Neck injuries;
• Failed surgeries;
• Multiple surgeries;
• Traumatic brain injuries;
• CRPS/RSD;
• Severe orthopedic injuries;
• Chronic pain conditions;
• Psychological conditions resulting from physical injuries.

Injured workers want get better and return to their previous employment; unfortunately, some eventually discover that their injury prevents them from returning to work at all.  When that happens, Social Security Disability benefits may become an important source of financial support.

What If My Doctor Says I Cannot Return to Work?

This is often the point at which workers begin considering SSDI benefits.

Common situations include:

• Permanent work restrictions;
• Inability to return to previous employment;
• Significant loss of earning capacity;
• Permanent total disability findings;
• Chronic pain that interferes with daily functioning.

While every case is different, these circumstances often raise important Social Security Disability issues.

What Is a Social Security Offset?

One issue that frequently surprises injured workers is the Social Security offset.  Federal law limits the amount of combined disability benefits that some individuals may receive from SSDI and workers’ compensation.  As a result, a portion of SSDI benefits may be reduced when a worker is also receiving workers’ compensation benefits; however, this does not mean a worker cannot receive both forms of benefits.

It simply means that proper planning is important.

Why Can a Workers’ Compensation Settlement Affect SSDI Benefits?

In reality, most injured workers eventually settle their workers’ compensation claims and the language used in a settlement agreement can significantly affect future Social Security Disability benefits.

In some situations, proper settlement language can help minimize the impact of a Social Security offset, and a poorly structured settlement may unnecessarily reduce future SSDI benefits.

This is one reason why understanding both systems can be important in serious injury cases because the two systems often overlap and it is important to understand how they interact.

When a worker suffers a serious injury, the focus should not be limited to the next doctor’s appointment or the next workers’ compensation check.  Questions that often arise include:

• Will I ever be able to return to work?
• What happens if my workers’ compensation benefits stop?
• Should I apply for Social Security Disability?
• How will a settlement affect my future benefits?
• What happens to my medical treatment?
• Will I qualify for Medicare?

These are long-term issues that can affect an injured worker and their family for years.

Final Thoughts

Many workers are surprised to learn that they may qualify for both workers’ compensation benefits and Social Security Disability benefits, but in serious injury cases, the two systems often work together to provide medical treatment, wage replacement benefits, and long-term financial support.  Because decisions made in one claim can affect the other, understanding how workers’ compensation and Social Security Disability interact is often an important part of protecting your future.

For decades, the attorneys at Powell and Denny have represented injured workers in both Alabama workers’ compensation claims and Social Security Disability claims. We understand how these systems work together and how decisions made in one claim can affect the other, so if you have suffered a serious workplace injury and are wondering whether you may qualify for Social Security Disability benefits, contact the experienced attorneys at Powell and Denny today a free consultation; remember, virtual appointments are available through Zoom so you can meet with one of the attorneys of Powell and Denny from wherever you live, and that there is no fee unless you win.

Powell and Denny: We Work When You Can’t.

Offices in Birmingham and Huntsville, Alabama.