SSDI and Workers' Compensation

Yes, you can receive both — but there's a catch. The SSA reduces your SSDI benefit if the combined total of SSDI and workers' compensation exceeds 80% of your average current earnings before you became disabled.

How the Offset Works

What Counts as Workers' Compensation

• State workers' compensation benefits
• Federal workers' compensation (FECA/OWCP)
• Black lung benefits
• Civil service disability benefits (if not covered by Social Security)
• State or local government disability benefits (if not covered by Social Security)

Strategies to Minimize the Offset

• Lump-sum workers' comp settlements: Structuring your settlement correctly can reduce or eliminate the SSDI offset. An attorney can draft the settlement to specify a reduced monthly equivalent.
• Report changes promptly: If your workers' comp ends, notify the SSA immediately so your SSDI can be restored to the full amount.
• Coordinate with an attorney: A lawyer who handles both SSDI and workers' comp can maximize your combined benefits.

Reporting Requirements

You must report your workers' compensation benefits to the SSA. Failure to report can result in overpayment — which the SSA will demand back, with potential penalties.

Report any changes in your workers' comp within 10 days of the change.

When Workers' Comp Ends

If your workers' compensation benefits stop (settlement reached, reached MMI, etc.), your SSDI benefit returns to its full amount. The offset only applies while you're receiving both.