How do unemployment insurance benefits affect a claim for Social Security disability benefits?
Receiving unemployment benefits can be a problem if you have a claim for Social Security disability insurance (SSDI) or Supplemental Security Income (SSI) because you are making two inconsistent statements:
- To get unemployment benefits, you are claiming that you are able to work, but you cannot find a job.
- But, to get Social Security disability benefits, you are claiming that you cannot perform any type of work at a substantial gainful activity level (generally full time work).
So, you are saying that you are ABLE and UNABLE to work at the same time.
In my experience, Judges do not like this and you are less likely to be found disabled under these circumstances.
I even recommend that my clients amend the Alleged Onset Date to some time after the unemployment benefits end. I do this by writing a short letter to the Judge noting that I wish to amend the alleged onset date to date “x.” Then, at the hearing, I mention the change to the alleged onset date again.
However, strictly speaking, Social Security does permit you to receive disability benefits and unemployment insurance.
The November 15, 2006 Memorandum from Chief Judge Frank Cristaudo states:
… the receipt of unemployment insurance benefits does not preclude the receipt of Social Security disability benefits. The receipt of unemployment benefits is only one of many factors that must be considered in determining whether a claimant is disabled.
….
Therefore, it is SSA’s position that individuals need not choose between applying for unemployment insurance and Social Security disability benefits.
However, application for unemployment benefits is evidence that the ALJ must consider together with all of the medical and other evidence.
So, applying for, or receiving, unemployment benefits does not prevent you from getting Social Security, BUT it is a factor Social Security considers in deciding your case.
I have seen Judges react badly when an individual is claiming unemployment benefits and Social Security disability at the same time. Personally, I caution against it. But, if unemployment benefits are the only way you have to make ends meet, it is not (necessarily) the end of your Social Security case.
My thanks to Maine Social Security attorney Gordon Gates for bringing the memorandum to my attention.
Updated 05/15/09.
I will be receiving only 3 months of unemployment. I last worked on Jan 2008. I didn't even know I was eligible until I went to a work force center and I was told I had to file for unemployment. I just applied for social security disability on the phone but I have not officially signed any medical release papers yet. I have been unemployed for 16 months. I also am a client of VR and have applied for 300 jobs in a year. My counselor told me I should apply for disability as well. These are 2 contradictory organizations as well, but It seems I have no choice. I applied for disabiliy in 2007 and was denied. I worked very sporadically in 2007 and only made about 16,000 dollars. The 5 years before I was making close to 50,000 dollars annually. Even when I was working I forced myself to do it because I had no choice but to work. I frequenly cried while I was seeing patients in the bathroom. I had to cut down on my hours frequently. My disability started in 2004. I have lost everything. I need this unemployment now because my daughter and I are about to go homelesss. So, I would like to know if this is okay. By the time they make a decision I will not even be collecting unemployment. In other words this is very temporary and we desperately need the money.
Barbara Smith
szugye995@yahoo.com
Hi Barbara,
As I state in the article, “receiving unemployment benefits does not prevent you from getting Social Security, but it is a factor Social Security considers in deciding your case.”
If you would like a more thorough evaluation, I encourage you to speak to an attorney in your area who specializes in Social Security disability cases.
Ok here is a good one. I have brain cancer, and tried to continue to workin sells. All it did was cause to many issues. My memory is terrible because of the surgery. So I was able to get Calfornia Disablity right away, with my company paying for my leave of absence for a year, as well as picking up Social Security Disability within 6 months because it's brain cancer. My question is this, my state ran out today, and I can't get back into sells with my issue. Can I claim unemployment because the company would not have me back in that type of position because of the past? So I would be on Social Security already in place as well as unemployment till I can find a job that has nothing to do with sells. Try this question out for size.
Tomasz:
I enjoyed reading your article, I had a case at hearing level today that was right on point. The judge cross examined claimant on unemployment benefits, claimant gave a good answer I thought, he said,”no one would hire me when i tried to find employment as required by unemployment office”. I agree with you though, much better if this problem does not arise, but I understand many claimants have no choice.
Best regards,
Daniel L. McMurtry, Esq.
http://www.socialsecuritydenied.com
i was awarded SSD by the ALJ on july 22 2009 in california, a bench decision. I went to the welfare office to apply for GA and they told me I had an open claim with unemployment and had to send in my unemployment claim form for unemployment benefits. I am concerned that if I continue receiving unemployment it will cause problems with my claim. It will take about three months to start getting any money from SSD. I have no money so what should I do???
I recieve unemployment benefits because I was wrongfuly fired and I recieve social security because my daughter is disabled. Social security deducted my daughters benefits because I get unemployment with unemployment I get about half of what i made and now I make less and recieve less and now falling behind in bills. someone told me its because I'm not paying into social security is why it was reduced.
When the father of a child is collecting unemployment compensation and his child is approved for ssi payments. Base on the social security office said that the child cannot recieve SSI until the father goes back to work. Is unemployment consider an income under the special rule of Social Security and his child would be recieving SSI after he start working. This seem to be a little complicting. Would you please explain why.
I am disabled since my accident but I was working for 18 months and got unemployment but now I worry that I did not tell Unemployment that I am getting 500 a month on SSD .
I am disabled since my accident but I was working for 18 months and got unemployment but now I worry that I did not tell Unemployment that I am getting 500 a month on SSD .
If you are on unemployment and have become disabled, do you stop unemployment on diagnosis? Then apply for SS Disability? Up to that point able to work.
Amending the alleged onset date is a good idea if this is going to possibly cause the claimant any problems at their hearing. I've dealt with Worker's Compensation issues in SS Disability claims, but have never had the unemployment issue come up yet.
The problem obviously, is that these claimants end up waiting years sometimes before they even end up getting any benefits. If the unemployment compensation is just right there for the taking, they may have no choice but to accept it while their disability claim is pending (especially now that the Feds are offering extended unemployment benefits due to the economy). Taking the benefits, and then amending the onset date is likely the best way to approach this situation in a SS Disability Hearing.
I have 5 kids and lost my job 2 years ago. I am on my extension which may or may not be extended again. I do have a dx of being psychotic and my mother told me to apply for SSD. I've suffered from panic attacks and depression for years (since 12 -its only gotten worst as I have gotten older)….I cant NOT take unemployment because thats the only way I can pay my bills, but I really need SSD…because I know I would qualify with that diagnoses. How could I go about this? I am 32 and need help ! !
It is wise to choose which claim or benefit to pursue. Pursuing both may cause prejudicial outcome.
i have been approved for social security disability but untill i was approved i was recieving unemployment benifits.I have just recieved a back pay check from disability .Is this correct?
thats my situation i get laid off every year when work slows down im a single father wit htwin girls they both have devlopmental delays and get ssi because of it the amount is based off what my income is as an ofset bu twhen i collected unemployment they said well because your getting money from unemployment from the state were counting 100% of that twords the children so instead of getting the amount i should have gotten from there ssi i got 2 checks for 16 dollarswhen working my average pay after taxes is around 525 dollars week and oncea month they would send like around 800 total from ssi to me now when i get unemployment 345 dollars a week i get two checks for 16 dollars ? doesnt seem right to me is this legal or is this ssi finding loophole bs to not pay out i live in rhode island
how can i can get social security when i came out of jail and i can not get job andnow i got a righf foot ligamentter.
Greetings…
Thanks for sharing your knowledge and opinions. And while everything you said seemed reasonable, I wanted to make a point on the subject:
If one applies for Social Security disability benefits and is rejected, the government is telling that person that they are indeed able to work. Even if the applicant appeals the Social Security decision, when answering the unemployment questionnaire, the applicant would have no legal basis to state that they are unable to work. Since the unemployment questionnaire must be signed under penalty of perjury, is the applicant not bound to state that they are able to work?
A better question is could the State unemployment department seek recovery from a Social Security award. This could be devastating, since unemployment benefits are often more than the amount of SS monthly benefits – thus leaving the applicant with none of the SS award and a State lien on their assets for the deficit.
Somewhere there is a job trying out mattresses in a bed factory. Just because those jobs are rare and you can't find one is enough for you to both, qualify for unemployment and qualify for SS benefits, depending on your health. There are plenty of jobs out there that do not include “substantial gainful activity”.
this is the situation i am in in south carolina.. I qualified for the extentions of benefits for the past 18 months.. now I have just been qualified for disability.. will this be a problem?
this is saadi
i have recieve my unemployment benefit since one year ago until know and i get my disability approve case befor two weeks but i dont receive any check yet from disability benefit until now
my quasions is how gonna work this two case