If you’ve been injured at work and received a workers’ compensation settlement, you may be wondering: Can I get disability after workers’ comp settlement? The answer is yes—but approval isn’t automatic, and the process can be complicated. While workers’ comp covers medical treatment and lost wages during recovery, it doesn’t always provide long-term financial support if your injury prevents you from working permanently.
The good news is that you can qualify for both workers’ compensation and disability benefits, but your settlement may impact how much you receive.
If you are facing challenges securing the benefits you deserve, our experienced workers’ compensation attorneys at Cruz & Associates can help. Whether you’re in Atlanta or Phoenix, we’ll guide you through the process to maximize your compensation.
Will I Automatically Qualify for Disability After a Workers’ Comp Settlement?
No, you are not automatically eligible for disability benefits after receiving a workers’ comp settlement. You must apply and meet the eligibility requirements of the specific disability program you’re pursuing.
Who Qualifies for Disability Benefits?
- Your injury must prevent you from working for at least 12 months or be classified as a permanent disability.
- You must meet the requirements of either Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).
- Medical records from your workers’ comp claim can strengthen your disability application by proving the severity of your condition.
Since workers’ compensation and Social Security disability are separate programs, approval for one does not guarantee approval for the other. This is why it’s critical to have strong medical evidence and legal guidance to ensure your best chance of success.
What Types of Disability Benefits Can You Apply For?
If you are unable to return to work after a workplace injury, several types of disability benefits may be available. However, your eligibility depends on your work history, financial situation, and where you live.
1. Social Security Disability Insurance (SSDI)
SSDI is available to workers who have a sufficient work history, meaning they have paid into the Social Security system for at least 10 years. The benefit amount varies based on past earnings, with a maximum monthly payment of $3,822 in 2024. However, if you receive workers’ compensation benefits, the SSA may reduce your SSDI payment to ensure that your combined benefits do not exceed 80% of your pre-disability earnings.
2. Supplemental Security Income (SSI)
SSI is designed for individuals with limited income and little to no work history. Unlike SSDI, SSI is a needs-based program, meaning eligibility depends on financial circumstances rather than work history. Because SSI has strict income and asset limits, a workers’ compensation settlement may disqualify you entirely. If your settlement amount exceeds the SSI resource limit, you may not be eligible for benefits.
3. State Disability Programs (Available in Some States)
Some states, including California, Hawaii, New Jersey, New York, and Rhode Island, offer short-term disability benefits. These programs provide temporary financial support to workers who are unable to work due to a non-work-related injury or illness. However, they do not typically cover workplace injuries, as those are generally handled through workers’ compensation. In some cases, if a worker settles their workers’ comp claim but is still unable to work, they may qualify for state disability benefits as an alternative source of income.
4. Veterans Affairs (VA) Disability Benefits
VA disability benefits are available only to military service members who can prove their injury is connected to their military service. A workplace injury alone will not qualify a worker for VA disability benefits unless they can show that their condition is related to prior military service. If a veteran develops a service-related condition that worsens due to a workplace injury, they may be eligible for additional compensation through the VA.
5. Private Disability Insurance
Private disability insurance is a separate policy that individuals may purchase through their employer or independently. If you had a private disability insurance policy before your injury, you may be eligible for short-term or long-term disability benefits, which typically replace 40% to 60% of your previous income. Unlike SSDI and SSI, private disability insurance payments do not impact workers’ comp settlements and vice versa.
READ MORE: Workers Comp vs Short Term Disability
How Does a Workers’ Comp Settlement Affect Disability Benefits?
Workers’ Comp and SSDI: The 80% Rule
The SSA follows an 80% rule when calculating SSDI benefits for workers who also receive workers’ compensation. This means that your combined monthly income from SSDI and workers’ comp cannot exceed 80% of your pre-injury earnings. If your total benefits exceed this threshold, the SSA will reduce your SSDI payment accordingly. Once your workers’ compensation benefits stop, SSDI payments may be recalculated and increased.
Lump-Sum Workers’ Comp Settlements and SSDI
If you receive a lump-sum workers’ comp settlement, the SSA may prorate the payment over a specific period to determine how much of your SSDI benefits should be reduced. For example, if your settlement is worth $100,000 and is structured to replace lost wages over five years, the SSA may calculate a monthly reduction in your SSDI benefits. In some cases, your settlement agreement may be written in a way that minimizes the reduction in SSDI benefits, which is why consulting with an experienced attorney is beneficial.
Workers’ Comp and SSI: Income Limits
SSI is a need-based program with strict financial limits, meaning that a workers’ comp settlement can disqualify you from receiving SSI benefits. Since SSI is only available to individuals with minimal income and assets, any workers’ comp settlement—whether paid in installments or as a lump sum—could push your financial resources above the program’s eligibility limits. Even if you qualify for SSI initially, receiving a settlement may cause your payments to stop until you spend down the excess funds.
When Should You Apply for Disability Benefits—Before or After Your Settlement?
The timing of your disability application can impact your benefits. While you can apply before or after settling your workers’ comp case, each option has pros and cons.
Applying Before Your Settlement
Some workers apply for SSDI or SSI while still receiving workers’ compensation to avoid delays. However, the SSA’s 80% rule limits total disability income, meaning your SSDI benefits may be reduced if your combined payments exceed this threshold. For SSI applicants, a workers’ comp check—whether ongoing or a lump sum—could disqualify them due to income limits.
Applying After Your Settlement
Waiting until your workers’ comp case is resolved can sometimes increase SSDI eligibility, as you may no longer have workers’ comp payments lowering your benefits. However, SSDI applications can take months, leaving you without financial support in the meantime. If your settlement is structured as a lump sum, the SSA may still count it as income and reduce benefits accordingly.
When Should You Apply?
There is no one-size-fits-all answer. The right time to apply for disability benefits depends on:
- Your financial needs—if you need immediate financial support, applying before settlement may be necessary.
- The size of your workers’ comp settlement—larger settlements can affect SSDI calculations and SSI eligibility.
- Your medical condition—if your injury is expected to be permanent, SSDI may be the better long-term solution.
- Legal strategy—working with an experienced workers’ compensation and disability lawyer can help you determine the best approach.
If you’re unsure when to apply, consulting with an attorney can help you maximize your benefits and avoid unexpected reductions.
How to Apply for Disability Benefits After a Workers’ Comp Settlement
If you decide to apply for SSDI or SSI after settling your workers’ comp case, following a structured process improves your chances of approval.
Step 1: Confirm Your Eligibility
To qualify, your condition must prevent you from working for at least 12 months or be permanent. Medical records from your workers’ comp case help establish this.
Step 2: Gather Medical Records
The SSA requires strong medical evidence to approve disability claims. Use:
- Doctor’s reports, test results, and treatment history.
- Statements confirming work restrictions or permanent disability.
- Proof of workers’ comp payments, as these affect income calculations.
Step 3: Submit Your Application
Complete SSA Form SSA-16 and submit it online, by phone, or in person. You’ll need details about your work history, medical condition, and income.
Step 4: Prepare for a Possible Denial
Many first-time applicants are denied due to missing paperwork or SSA’s strict disability definition. If denied, you have the right to appeal, and many cases are approved in later stages.
Step 5: Consider Legal Representation
An experienced disability attorney can improve your approval chances by ensuring your application is complete and well-documented. Cruz & Associates helps injured workers successfully secure SSDI and SSI benefits by navigating complex legal and medical requirements.
Let Cruz & Associates Help You Get the Benefits You Deserve
Applying for disability benefits after a workers’ comp settlement can be complex, but you don’t have to handle it alone. From navigating SSDI to understanding how your settlement affects your benefits, the right legal team can make all the difference.
For over 35 years, Cruz & Associates has been dedicated to helping injured workers in Atlanta and Phoenix, with a special focus on supporting Spanish-speaking clients. We believe everyone deserves access to quality legal representation—without financial risk. That’s why we work on a No Win, No Fee basis, meaning you don’t pay unless we win your case. Our team is here to guide you every step of the way. Call, text, or message us on WhatsApp today for a free consultation. ¡Hablamos Español!
? Atlanta Office: 404-444-1111
? Phoenix Office: 602-777-6666
