The Difference Between Workers' Comp and Disability Benefits

If you suffer a work-related injury, the two primary programs that can help you are workers’ compensation and disability benefits. They both provide money to help cover your medical bills and living expenses. But they are not the same and apply to different situations. Injured workers should know the difference.

This article will teach you the key differences between workers’ comp and disability benefits. 

What Is the Difference Between Workers ‘ Compensation and Disability Benefits?

Imagine you are at work and get a workplace injury. Examples of injuries include:

• Slipping on a wet floor and breaking your foot
• Hurting your back by lifting heavy boxes
• Burning yourself on a hot surface
• Falling from scaffolding or a ladder

This is where workers’ compensation comes in. If you file a workers’ compensation insurance claim, your employer’s insurance can help pay your medical expenses. They will also pay part of your wages while recovering.

Workers’ compensation benefits provide an alternative to suing your employer. As required by all states except Texas, employers must carry workers’ compensation.

Conversely, disability benefits are for long-term situations. If you have a medical condition that makes it impossible to work for a long time, or maybe even ever again, that is when you apply for disability benefits. There are two types: short-term and long-term disability.

• Short-term disability benefits can help if your impairment is expected to last a few months.
• Long-term disability can provide benefits for several years or even until retirement age.

Disability benefits cover a portion of your salary but will not cover medical costs. That is where health insurance comes in.

State disability benefits provide weekly benefits if you are injured away from work but cannot work at your regular or customary job. The key difference is that workers’ compensation covers you for injuries for which the employer would be liable. At the same time, disability benefits are not paid for through your employer but still help compensate for lost income.

However, you may be eligible for state disability benefits when you are entitled to receive workers’ compensation. You can get state disability benefits that are higher than the workers’ compensation benefits.

Suppose your employer or insurance company is disputing whether you should receive workers’ comp. In that case, the state can provide you with state disability until the dispute is resolved. Then, the state will ask for your money back from the employer or its insurance company if you are successful in your workers’ comp case.

Workers’ compensation temporary disability benefits are paid until your condition becomes permanent and stationary. After that, you may be entitled to permanent disability benefits and lifetime medical care. State disability benefits are payable for only 52 weeks.

May I Receive Federal SSDI and Workers’ Compensation or State Disability Benefits Simultaneously?

Yes, you can receive federal Social Security disability benefits (SSDI) and workers’ comp or state disability benefits simultaneously. The following situations allow you to withdraw both:

• If you are disabled,
• Expect to be disabled for at least a year and a day, or
• Have a terminal illness and have paid the necessary funds

However, the U.S. Social Security Administration (SSA) may lower your disability benefits. They will do this if your workers’ comp benefits and disability benefits are more than a certain amount.

May I Receive Unemployment Benefits and Workers’ Compensation Benefits at the Same Time?

Not normally. The rules can be complicated. Generally, you cannot get unemployment benefits (UI) simultaneously with workers’ compensation benefits. Unemployment benefits are for those who are:

• Able to work,
• Seeking employment, and
• Have lost their job through no fault of their own

You must be ready, able, and available to work to collect unemployment. The maximum benefit is payable for up to six months.

Workers’ comp benefits are for people who cannot work because of a job-related injury.

An Attorney Can Help With Workers’ Comp or Disability Benefits

If you sustain a work injury and cannot work, it is essential to get the right help. Injured employees should seek medical attention immediately. Then, they should talk to a lawyer.

An attorney can explain your rights and help you file a workers’ comp claim. They can also negotiate with your insurance carrier if needed. Attorneys will help you get the medical benefits you deserve in your workers’ compensation case.

They can also help if your employer denies your workers’ compensation claim or if your claim goes to court. If you have a medical condition that makes it impossible to work for an extended period, legal advice is critical.

This process can be challenging to navigate. If you are still dealing with a work-related injury or illness, you’ll want to focus on your medical care and recovery. Your lawyer can handle the legal aspects of your claim and help secure the compensation you’re entitled to.

FindLaw’s directory of workers’ compensation lawyers can connect you with qualified legal help who can help you understand your state’s workers’ compensation laws. Select your state or city to review contact and ratings information for local experts. Many law offices offer free consultations.