Social Security Disability Insurance (SSDI) and worker’s compensation both provide financial compensation for people who cannot return to work. Each program has its own burdens of proof and rules to qualify for benefits.
In certain situations, an injured worker qualifies for both SSDI and worker’s compensation benefits. In Wisconsin, the recipient’s worker’s compensation benefits may be reduced by receipt of SSDI. If you were seriously injured at work and suffered permanent disability, permanent wage loss, or significant lost time from work, you may be entitled to SSDI and worker’s compensation benefits. Kingree Law Firm can secure the compensation you deserve.
To qualify for SSDI, you must prove you are disabled, are unable to return to work, and that your disability is expected to last for at least one year. Eligibility for SSDI is not dependent upon whether you were injured at work.
To be eligible for worker’s compensation benefits, you must prove that your disabling condition arose out of work activities or a specific work injury, that you sustained a wage loss while in the healing period due to restrictions from the work injury, that you have a permanent partial disability rating to the injured body part, or that you have a permanent wage loss due to permanent restrictions from the work injury. Your employer’s workers’ compensation insurance should pay benefits on a temporary or permanent basis, depending on the severity of your injuries and whether you are able to return to work. Of course, many Wisconsin worker’s compensation claims are denied by the worker’s compensation insurer, often by an “Independent Medical Exam” or IME.
In many states, worker’s compensation payments can cause a reduction in SSDI benefits. This is not the case in Wisconsin. Wisconsin is a “reverse offset state.” If you are eligible to receive both worker’s comp and SSDI benefits, your SSDI benefits may reduce the worker’s comp benefits you receive. Under Wisconsin law, the total amount you receive from worker’s comp and social security disability cannot be more than 80% of your average earnings before you were disabled and became unable to work. There may be other negative impacts to a Wisconsin worker’s compensation claim if you have applied for or have been approved for SSDI. We encourage you to contact us for further information on this, as it is an extensive topic.
It is impossible to predict whether and to what extent your Wisconsin worker’s comp benefits will be reduced until you know your Social Security Average Countable Earnings and Monthly Benefit Amount. Please note, Social Security Retirement benefits do not result in any reduction of Wisconsin worker’s compensation benefits.
The Social Security Administration (SSA) calculates your Average Countable Earnings and Monthly Benefit Amount using your highest monthly earnings under one of three formulas:
If your Monthly Benefit Amount is more than 80% of what you earned before your disability (calculated using one of the three methods set forth above), your Wiscinson worker’s compensation benefits may be reduced. If your Monthly Benefit Amount is less than 80% of what you earned before your disability, your worker’s compensation benefits may not be reduced.
If you have sustained a serious work injury that resulted in significant wage loss or permanent disability and believe you are eligible for both workers comp and SSDI, you should consult with an experienced attorney before filing your claim. It is important to understand the difference between SSDI and worker’s comp benefits, how receiving SSDI benefits could impact your worker’s comp claim, and how your worker’s comp benefits can be maximized. Also, remember that the SSA and the Wisconsin Department of Workforce Development have different definitions for “disability.”
Luke Kingree has been recognized as a Wisconsin SuperLawyer and is known as a powerful advocate for injured workers who regularly achieves exceptional results for his clients. Contact Kingree Law today to schedule an appointment to discuss your situation and how we can help.
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