Social Security Disability

Before workers compensation laws were in effect, the only thing an injured worker could do was file a tort suit against their employer for negligence. Under the tort system, workers may not have had the ability to recover damages, and the employer’s liability was very limited. Today, workers compensation is financed by the employer, and provides coverage for injury or illness incurred on the job. Workers compensation in the United States is one of two of the nation’s largest disability programs. The other is the Social Security Disabilty benefits program.

How Social Security Disability Works

Social Security Disability Insurance provides cash and medical benefits to workers who have become disabled on the job. Social Security pays benefits to people who cannot work because of a medical condition that is expected to last at least one year, or result in death. In order to qualify for these benefits, you need to meet two different two different earnings tests:

1. A “recent work” test that is based on the age and time you became disabled
2. A “duration of work” test to show that you worked long enough under Social Security to be eligible for compensation

The Offsets of Social Security Disability and Workers Compensation

If you become eligible for periodic or lump-sum workers compensation benefits, the 1965 Social Security Amendments require that Disability Insurance benefits are reduced so that the combined amount of workers compensation plus Social Security disability benefit does not exceed 80 percent of the worker’s average current earnings.
Average current earnings are defined as the highest of:

• Average monthly wage that the unindexed disability primary insurance amount is based upon
• Average monthly earnings from covered employment and self-employment during the highest 5 consecutive years after 1950, or
• Average monthly earnings in the calendar year of highest earnings from covered employment during the 5 years ending with the year in which disability began

The percentage of Social Security Disability insurance benefits and worker’s compensation benefits varies from state to state, so it’s important to learn what your state’s rules and statutes are.

If you think you may be eligible for Social Security Disability benefits, contact a qualified workers compensation attorney for a free evaluation. He or she will be able to review your situation and provide you with a recommendation about filing your claims so that you can obtain the maximum benefit amount.

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