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.