Christy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Written By Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Christy Bieber, J.D. ContributorChristy Bieber has a JD from UCLA School of Law and began her career as a college instructor and textbook author. She has been writing full time for over a decade with a focus on making financial and legal topics understandable and fun. Her work has.
Contributor Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
Jeffrey Johnson, J.D. Deputy Legal EditorJeffrey Johnson has written novels and movies in addition to legal analyses of eminent domain and immigration law. His experience in writing engaging fiction makes him uniquely capable of making the most dry and academic legal topics interesting (or.
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Published: Aug 2, 2024, 9:17am
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If you are hurt or sick and cannot work, you need money to support yourself and your loved ones. Both workers’ compensation benefits and disability benefits could provide financial support, but only in specific circumstances.
It’s important to understand the differences between workers’ compensation and disability benefits to understand what each program could do for you.
Workers’ compensation is intended to protect workers who get hurt while performing work tasks. Here’s how it works.
In most states, employers must purchase workers’ compensation insurance for their workers. If an employee gets hurt or is made sick while doing their job, workers’ compensation should cover their losses. This is true even if the employer wasn’t negligent or didn’t do anything wrong.
When an employee is covered by workers’ compensation, they cannot sue their employer in a personal injury case after they get hurt. They must pursue a workers’ compensation claim. Workers may be eligible to make a claim even if their disability is a short-term one, and even if it doesn’t prevent them from working entirely if it reduces their earning power.
Employees are covered by workers’ comp insurance by working for an employer who is required to buy this coverage. An employee does not need to do anything special to be entitled to its protections, and employers are responsible for covering workers’ comp insurance costs.
Virtually any injury or illness directly caused by the performance of work tasks could result in an employee becoming eligible for workers’ comp benefits.
This can include conditions like cancer due to exposure to asbestos at work or carpal tunnel derived from typing too much, as well as any other illness or injury that can be tied back to the performance of work duties, such as falling on the job.
The key for an employee to become eligible for benefits is to show the link between their job obligations and the harm they are experiencing.
Workers’ compensation does not limit employees to recovering only from permanent and severe injuries, although those badly hurt with persistent injuries will typically receive more compensation. Even a relatively minor injury that reduces earning power, accrues medical costs or leads to missed work will usually be covered by workers’ compensation benefits.
Workers’ comp benefits can include:
Disability benefits can also provide payments when you are too sick or hurt to work, but they work very differently from workers’ comp benefits. Here’s what you need to know.
The Social Security Administration offers disability benefits for long-term disabilities through two programs:
Both SSI and SSDI are for long-term disabilities only. No short-term benefits are available at the federal level.
Some states, including California, New Jersey and New York, offer short-term disability benefits. You can also purchase private disability insurance or receive it as a workplace benefit. Still, only a minority of workers (40% or under) have access to these policies, according to the Bureau of Labor Statistics.
Social Security Disability has very strict requirements for eligibility for benefits. You must have
If you can meet these requirements, you must apply and get approved for disability benefits. Many applications are denied initially, and you may need professional legal help to appeal.
If you have private disability benefits or your state offers short-term disability benefits, eligibility criteria will be determined by your policy or state rules and you may be able to get benefits even if you don’t meet the above requirements.
To find out what disabilities are covered by Social Security Disability, you can refer to the Blue Book or Listing of Impairments. Some examples of disabling conditions that could result in benefits include:
These are just a few of many. The key is that the condition must be severe and long-term and cause significant impairment to prevent you from working and earning income.
State and private disability programs may cover many more conditions than Social Security, including short-term disabling conditions.
Social Security Disability Benefits (SSDI) provide a monthly benefit calculated based on the income you earned throughout your career.
SSDI benefits offer a set monthly income, with a maximum benefit of $943 for individuals and $1,415 for couples in 2024.
The amounts provided by state and private disability benefits plans differ by location and plan type. Still, they are often based on a percentage of earnings before the time you became unable to work.
There are some important differences between disability and workers’ comp benefits to be aware of. Here’s what you need to know.
Workers’ compensation is available to any worker with a job with a covered employer, which is the case for most workers in the United States. Employees do not need to do anything to get covered beyond working for a covered employer and could be entitled to benefits even if injured on their first day on the job.
Any work injury should entitle you to workers’ comp benefits, including payment of medical bills, wage loss benefits, and permanent or temporary partial or total disability benefits if applicable. This includes short-term disabling conditions.
Supplemental Security Income benefits are available to disabled Americans with limited income and financial resources. In contrast, SSDI benefits are available to those who have earned enough work credits in their working life to qualify for the program. Both provide only income, no coverage for medical care, and neither offers coverage for short-term ailments.
Eligibility for state and private disability insurance coverage depends on location and whether you or your employer purchased a disability insurance plan before the time of an injury or illness.
Workers’ comp benefits are provided by insurance companies employers hire to offer coverage.
SSI and SSDI are funded by the federal government, with SSI funding coming from the U.S. Treasury’s general fund, SSDI funding from payroll tax collection and the Social Security Disability Trust Fund.
Private disability benefits come from insurers, while states have different funding mechanisms for their disability programs.
To file for workers’ comp benefits, you’ll need to alert your employer to the injury or illness you developed due to job tasks.
Your employer typically alerts the insurer and workers’ compensation board about the injury, and the workers’ compensation insurer has a set period, such as 21 days, to take action on your claim.
If your claim is approved, you should begin receiving benefits. If it is denied, you can appeal or file a workers’ compensation lawsuit.
To file a Social Security disability claim, you may be eligible to apply online or visit a local Social Security office. You’ll need to provide documentation of a covered illness or injury.
Social Security disability claims are frequently denied, and you have the right to appeal through a multistage process, including a request for reconsideration and a hearing before an administrative law judge.
The application process for state and private disability benefits varies by program.
Social Security benefits are for long-term disabling conditions only. They can last until you pass away or become eligible for retirement benefits. The Social Security Administration will review your case periodically to determine if you still qualify for benefits. You must provide notice if you return to work or your condition improves.
Workers’ comp payments can last for the duration of your work-related ailment. You can continue receiving benefits until you have fully recovered, have returned to full employment or are medically able to perform other employment without a loss in earnings despite your condition.
Most state and private disability benefits programs also last for the duration of your injury.
You can collect benefits from both workers’ comp and Social Security Disability programs if you qualify for both. However, your Social Security benefits may be reduced as combined benefits can’t exceed 80% of covered wages.
You must report your injury to your employer within a certain time to become eligible for workers’ comp. You may be able to apply for disability benefits at any time you meet the definition of disabled, but generally, you can recover payments only dating back to the date of your application, so you may not want to delay.
Employers and workers’ compensation insurers can and do dispute workers’ comp claims, sometimes arguing that you do not have a covered injury or that your injury isn’t as severe as you had claimed. If you are denied a claim you believe is valid, you should contact an experienced work injury attorney for help.
Injuries are damage to your body. They often happen because of an accident or because you put too much strain on your body. A disability is a condition of the body that impairs your ability to function. A cut on your leg would be an injury, but if it did not affect your ability to operate your leg normally, it would not be a disability. If, on the other hand, your leg was cut in a way that permanently impaired your ability to walk, it could lead to a disability. Disabilities can be caused by injuries or illnesses.
