When a serious on-the-job injury keeps you out of work for an extended period of time, you can count on your worker's compensation benefits to cover your medical bills and other expenses. In many cases, you may also qualify for Social Security Disability Insurance (SSDI) benefits.

You may be wondering if you can safely collect both types of benefits or if you're limited to choosing between worker's comp and SSDI. Read on to learn how you can receive all of the benefits you're entitled to by law.

You're Entitled to Both Benefits

Many people assume that applying for state or federal worker's compensation benefits precludes them from applying for other disability benefits, including SSDI. However, applying for and receiving worker's comp benefits won't bar you from applying for SSDI. In fact, most experts recommend filing a disability claim in conjunction with your worker's comp claim, provided you meet the criteria set by the Social Security Administration.

It's worth noting that the requirements for SSDI are a bit different from those of other benefits programs offered by the SSA. For instance, SSDI benefits are available to qualifying workers of all ages, meaning you won't have to wait until you've reached retirement age to take advantage of your disability benefits.

Worker's Comp May Offset SSDI

As mentioned above, you can receive both worker's comp and SSDI benefits without any issues. There is a catch, however. According to the SSA's guidelines, the total amount of disability benefits you receive must not exceed 80 percent of your pre-injury income. In the vast majority of cases, the SSA will calculate your pre-injury income by looking at your highest monthly earnings from any single year within the past five years.

To keep the total amount of benefits under the 80 percent threshold, the SSA may adjust the amount of your SSDI benefits based on the amount of worker's compensation you receive. If your pre-injury earnings were $3,000 a month, for example, the SSA will cap your total monthly benefits at 80 percent of those earnings, or $2,400. If your combined SSDI and worker's comp benefits exceed $2,400, the SSA will reduce your SSDI benefits until your total benefits fall under the 80 percent threshold.

SSDI May Offset Worker's Comp, in Some Cases

In contrast to the above, the reverse can happen in states with "reverse offset" rules on the books. Instead of the SSA offsetting your SSDI benefits based on your worker's compensation benefits, your state will offset your worker's compensation benefits based on your SSDI benefits.

Only 14 states, including California and Florida, have SSA-recognized reverse-offset rules in effect. Four states and Puerto Rico have rules in place that reduce public disability benefit (PDB) payments to offset SSDI benefits.

SSDI Offsets Also Apply to Lump Sum Settlements

If you've received a lump sum payment in lieu of monthly worker's compensation benefits, the SSA may still offset your SSDI benefits to account for the settlement. In most cases, the SSA will divide the lump sum into monthly amounts based on the periodic payments you've previously received. Afterward, the SSA will offset your SSDI benefits to keep your total disability benefits under the 80 percent threshold.

Fortunately, you can work with your worker's compensation attorney to minimize any offsetting of your SSDI benefits. For instance, your attorney can draft your settlement agreement to award your lump-sum amount as smaller payments lasting up to retirement age. With these smaller payments, you'll see fewer of your SSDI benefits offset by your lump-sum settlement.

Your worker's comp attorney can also draft an agreement excluding medical and legal expenses from your lump-sum settlement. As long as there's clear and concise documentation of your aforementioned expenses, you'll be able to exclude them from any offset calculations performed by the SSA.

In closing, your worker's compensation benefits won't conflict with any SSDI benefits you may be eligible for. However, you won't be able to receive both benefits in full due to the SSA's 80 percent rule. Contact a law office like the Law Office of Joel A. Santos for more information.