Few situations are more stressful than navigating a serious injury that leaves you unable to work, especially when you’re unsure how to access the benefits you deserve. One question often comes up: Can you qualify for SSDI while receiving workers’ compensation? The short answer is yes, but the process has important nuances.

In this post, we’ll unpack how SSDI while receiving workers’ compensation works, how SSDI and workers’ comp benefits interact, and why working with a seasoned disability lawyer is your best path to securing everything you deserve.

Dual Benefits: Is it Allowed?

Yes, it’s legal to receive both Social Security Disability Insurance (SSDI) and workers’ compensation benefits at the same time. SSDI supports long-term, medically verified disabilities, while workers’ comp covers injuries sustained on the job. Their eligibility standards differ, so you can qualify for both, even with the same injury.

However, the combined benefits cannot exceed 80% of your average current earnings (ACE) before disability. That means if your job previously paid $4,000 per month, the total of your SSDI and comp checks cannot exceed $3,200 a month. If it does, your SSDI gets reduced accordingly. Your worker’s comp stays the same—SSDI adjusts downward, not the other way around.

How SSDI and Workers’ Comp Benefits Interact

SSDI and workers’ comp serve distinct purposes:

• SSDI is federal, tax-funded, based on lifetime earning records, and supports long-term total disabilities unrelated to the job.
  
  
• Workers’ compensation is state-specific, insurance-funded, and covers only injuries directly tied to employment.
  
  

When you receive both, the Social Security Administration applies the “workers’ compensation offset.” They subtract the amount of your SSDI benefits that must be reduced so your total income remains under the 80% ACE threshold.

Who Is Affected by Offsets?

According to a Social Security Administration report, about 414,000 SSDI beneficiaries had filed for workers’ compensation or public disability benefits as of December 2021. That’s nearly 5% of all SSDI beneficiaries, confirming this isn’t a rare scenario.

Around 10–12% of SSDI recipients also have workers’ compensation benefits on record.  With so many navigating both systems, it’s vital to understand how they interact—and how a disability lawyer can help you maximize your entitlement.

Why This Offset Exists

The 1965 amendments to the Social Security Act introduced the offset to prevent “double dipping”, where someone could end up with more than 80% of their previous income by receiving both benefits. The intent was to ensure fairness—preventing excessively high payouts—while still supporting injured workers.

Seventeen states and Puerto Rico have policies allowing for reverse offset: instead of reducing SSDI, they reduce workers’ comp to keep combined benefits in check. But in most states, SSDI is reduced first.

Why a Disability Lawyer Matters

Although you can collect both SSDI and workers’ comp, the offset calculations and eligibility rules are complex:

Benefit Coordination

A disability lawyer understands how to calculate the ACE, predict offsets, and optimize timing, especially with lump sum or settlement options.

SSDI Approval Strategy

A lawyer ensures your medical records and work history meet SSA standards for long-term disability, critical to avoiding denial.

Lump-Sum Comp Settlements

Large lump-sum payments can incur massive SSDI offsets. A savvy lawyer can structure settlements (e.g., via structured awards or trust) to minimize the financial hit.  

Appeals & Denials

Many SSDI applications are denied initially. Lawyers navigate the reconsideration and hearing process, boosting approval odds.

What You Should Do Right Now

• Apply early for SSDI—even while on worker’s comp—to avoid delays.
  
  
• Track earnings to estimate your ACE and possible SSDI amount.
  
  
• Report changes in workers’ comp to SSA promptly to avoid overpayments.
  
  
• Consult a qualified disability lawyer to coordinate both claims, minimize offsets, and adapt strategies if you settle or switch benefits.

Take Charge of Your SSDI Entitlement

Wanting SSDI while receiving workers’ compensation isn’t wrong—it’s your entitlement. The law allows both, but the 80% rule and offsets mean one benefit may be reduced. With tens of thousands of recipients affected, having a legal advocate can significantly impact your monthly income and long-term well-being.

Don’t leave money on the table—get professional help to coordinate your benefits. Speak to a disability lawyer now at Disability Attorney Services, LLC., to ensure you maximize both SSDI and workers’ comp.