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Should You Apply for Social Security Disability Before or After Settling Your Workers’ Compensation Claim?
Posted in Workers' Compensation on March 6, 2025
It’s essential to determine when to apply for Social Security Disability benefits for your Workers’ Compensation settlement. The question “Should You Apply for Social Security Disability Before or After Settling Your Workers’ Compensation Claim?” deserves thoughtful consideration because filing too soon would adversely affect the amount of benefits one may receive, and waiting too long would leave one waiting for much-needed financial relief. The correct timeline cuts your losses and maximizes your financial settlement during and after the period preceding a settlement, and soliciting help from an attorney with experience, such as Crossman Law Offices, will set you in a position to protect your financial interests.
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How Does Workers’ Compensation Affect Social Security Retirement Benefits?
Collecting Workers’ Compensation does not reduce Social Security retirement benefits. Social Security payments are mainly based on a person’s lifetime earnings and on the age at which they decide to retire. That’s a fraction of what Workers’ Compensation pays to help the injured or sick at work, which covers some of their temporary wages but not lifelong income. While both programs offer crucial financial support, they operate separately and serve different functions.
Workers’ Compensation benefits have a time limit and are reserved only for job-related injuries. In contrast, Social Security retirement benefits are accrued over the years and intended to last well into the future. Those nearing retirement need to know that the offset that applies when going from Social Security Disability Insurance (SSDI) to retirement benefits will no longer apply when you apply for retirement benefits instead. Retirees will get their complete Social Security without any Workers’ Compensation-related reductions.
Given the complexity of these programs, if you’re in the Phoenix area, you should reach out to an experienced attorney who can help you make the right decisions. To receive their rightful benefits, the legal staff at Crossman Law Offices focuses on workers’ compensation and social security, so you can find no way to determine your specific situation but get help to get the necessary benefits.
Applying for Social Security Disability and Workers’ Compensation
When dealing with injuries that prevent you from working, it’s tempting to apply for every available program immediately. However, there are essential considerations for timing your applications for Workers’ Compensation and Social Security Disability:
Apply for Workers’ Compensation First
If your injury occurred on the job, filing for Workers’ Compensation benefits through your employer is the first step. This will provide immediate financial help for treatment, rehabilitation, and lost wages. Report the injury and file your claim to swiftly resolve any problems or hassles.
When to Apply for Social Security Disability
SSD benefits could be provided for you if you are expected to be unable to work for over a year due to an illness or injury. But, if you are applying for SSD while already receiving Workers’ Compensation, your total payment could be reduced.
The Social Security Administration (SSA) has a restriction on the sum of some payments paid out as a disability, including the Workers’ Compensation claim. This restriction is often called the ‘workers’ compensation’; it is made so that a disabled person does not take over 80% of their average income before their injury. If you have surpassed this limit, SSD will actively remove your payments until your Workers’ Compensation ends.
To reduce the effect of this offset, try to file for SSD after your Workers’ Compensation settlement so you do not have to face benefit reductions. You can file for them simultaneously but expect reduced SSD payments as long as your Workers’ Compensation is ongoing. As these calculations can become complicated and are also subject to other state-specific laws, like Arizona’s, obtaining legal advice can ensure you obtain maximum benefits.
Does Workers’ Compensation Affect Social Security Disability in Arizona?
Social Security Disability (SSD) benefits in Arizona can be affected by Worker’s Compensation Payment, also known as Workers’ Compensation. This federal rule ensures that the total percentage of public disability benefits, workers comp included, does not exceed 80% of your pre-disability earnings. If the total surpasses this threshold, your SSD payments will be reduced accordingly. However, Arizona has specific rules and exemptions that may influence how these benefits interact, making it essential to approach the process strategically.
One way to mitigate the impact of this offset is through careful planning when settling a Workers’ Compensation claim. Structured settlements, which distribute payments over time rather than in a lump sum, can help reduce the effect on SSD benefits.
Navigating Workers’ Compensation and SSD claims simultaneously can be complex, and having legal representation is invaluable. A knowledgeable Phoenix Workers’ Compensation attorney can help you optimize your settlement and ensure you receive maximum benefits. Firms like Crossman Law Offices specialize in these cases and can guide you through the process, helping you avoid unnecessary reductions and secure the compensation you deserve.
Key Insights and Next Steps
Workers’ compensation and Social Security Disability are significant for workers injured on the job who need financial help. Here are some actionable points you may take:
Workers’ Comp first to start your recovery if you are injured on the job and waiting for a medical condition connected to work. SSD eligibility is an early evaluation point, especially if you know how long the work injury will last 12 plus months.
Timing your application strategically can optimize your combined benefits. Consult with experts, such as Crossman Law Offices, to understand how Arizona-specific laws affect your benefits and settlements. Plan for the Offset by working with your attorney or advisor to calculate potential reductions to your SSD based on Workers’ Compensation payouts.
Avery N Crossman
Ms. Crossman is a State Bar Board Certified Workers’ Compensation Specialist and is past Co-Chair of the State Bar Workers’ Compensation Section. She has served as a faculty member at the State Bar Seminar on Professionalism and is a former Judge Pro Tempore in the Arizona County, Justice, and Superior Courts. In the past, she has spoken at seminars on Workers’ Compensation sponsored by the Industrial Commission of Arizona and the Arizona Association of Lawyers for Injured Workers. Ms.Crossman is a long-time member of the Arizona Association of Lawyers for Injured Workers. She is also a member of American Mensa.
It’s a challenging process, but careful preparation and legal expertise can help ease your financial burden and ensure you receive the support you’re entitled to.
Maximize Your Benefits with Expert Legal Guidance—Contact Crossman Law Offices Today!
You don’t have to struggle with your Workers’ Compensation or Social Security Disability claim in Arizona alone. Skilled lawyers at Crossman Law Offices will fight for your rights and benefits, guaranteeing maximum compensation.
Contact us at 602-248-0380 or visit our office at 4545 East Shea Boulevard, Suite 164, Phoenix, AZ 85028, to arrange a consultation and start getting the legal help you’re entitled to.