After a work injury, you may wonder how you’ll make ends meet, especially if you can’t return to your job. This often raises the question, Does workers’ comp count as income for unemployment benefits?
The general rule is that you cannot collect unemployment and workers’ comp simultaneously, as they are designed to cover different situations. However, there may be rare exceptions where you can collect both based on specific circumstances.
Navigating the rules around workers’ comp and unemployment can be confusing. This post will walk you through what you need to know about eligibility, how workers’ comp affects unemployment benefits, and how to make the most informed decision for your financial future.
Understanding Workers’ Comp and Unemployment Benefits in North Carolina
Knowing how each benefit works in North Carolina helps you understand how workers’ compensation affects unemployment benefits.
What Workers’ Comp Covers
Workers’ compensation benefits help cover medical expenses and a portion of lost wages when an employee sustains an injury on the job. Workers’ comp is specifically for individuals who are temporarily or permanently unable to work due to a work-related injury or illness.
Purpose of Unemployment Benefits
Unemployment benefits, on the other hand, are intended for individuals who are out of work through no fault of their own but are physically able to work and actively looking for a new job. In North Carolina, unemployment benefits require you to be “able and available” for work, which often conflicts with the conditions qualifying someone for workers’ comp.
Does Workers’ Comp Count as Income for Unemployment?
Workers’ comp benefits are not considered income in the same way wages are, but receiving them will usually disqualify you from collecting unemployment. Read on to learn why you cannot collect unemployment while on workers’ comp.
Unemployment benefits require you to be “able and available” for work and actively seeking employment. Since workers’ comp is specifically for individuals unable to work due to an injury, these two benefits typically conflict.
If you’re receiving workers’ comp, it generally means you’re not eligible for unemployment because you’re not able to work. Attempting to collect both benefits simultaneously could lead to legal issues, as it may be viewed as “double-dipping.”
How Does Workers’ Comp Affect Unemployment Benefits?
Though receiving workers’ comp will generally disqualify you from collecting unemployment benefits, there are some situations where you might be able to receive unemployment while dealing with a workers’ comp claim. Here are a few exceptions that could apply.
Applying for Unemployment While Waiting for Workers’ Comp Approval
If your workers’ compensation claim is still under review, you may qualify for unemployment benefits during this waiting period. In this case, you may be temporarily eligible for unemployment benefits until your workers’ comp claim is granted. That allows some income support as you await your workers’ comp case decision.
Receiving Permanent Partial Disability (PPD) Payments
If you’re receiving workers’ comp benefits for a permanent partial disability and are working under restrictions, you may still qualify for unemployment benefits. Suppose you can work with certain limitations but cannot return to your previous job. In that case, you might receive both PPD and unemployment benefits while actively seeking a new job that fits your physical restrictions.
Workers’ Comp vs. Unemployment: Key Differences
Understanding the differences between workers’ comp and unemployment benefits can help clarify why these programs typically can’t be received simultaneously.
Benefit Amounts and Duration
Workers’ comp benefits are typically a percentage of your usual wages and continue for as long as you’re medically unable to work or meet specific disability criteria. Unemployment benefits, however, are calculated based on your work history and last only for a limited period.
Transitioning Between Benefits
Some individuals may move from workers’ comp to unemployment if they’re medically cleared for work but unable to find employment. For instance, after reaching maximum medical improvement, if you still can’t return to your previous role but can work elsewhere, unemployment benefits may be an option.
Common Mistakes to Avoid When Seeking Workers’ Comp and Unemployment
Maximizing the benefits available to you requires careful handling of each step. Here are some common mistakes to avoid when managing workers’ comp and unemployment claims:
- Applying for both without checking eligibility. Attempting to receive both benefits simultaneously without meeting the specific exceptions can result in legal and financial complications. Ensure you understand each eligibility criteria and consult a professional if needed.
- Not reporting income changes. Failing to report income from workers’ comp when applying for unemployment can lead to penalties or a requirement to repay benefits. Transparency about workers’ comp payments helps prevent future issues with unemployment eligibility.
- Overlooking transitional options. Some people rush to apply for unemployment once cleared for light work or partial disability without exploring if they still qualify for workers’ comp benefits with restrictions. Take time to understand if you can transition between benefits rather than apply for both simultaneously.
Avoiding these mistakes can help streamline your claims process and improve your chances of getting the support you need while following North Carolina’s guidelines.
Contact a North Carolina Workers’ Comp Lawyer
Understanding workers’ comp vs. unemployment can be challenging, especially if you’re unsure about eligibility when recovering from a workplace injury.
At Mehta & McConnell, we know how confusing it can be to determine whether to pursue workers’ comp or unemployment benefits. With years of experience helping North Carolina residents, our team is ready to answer your questions and guide you toward the best options for your situation.
If you’re unsure about your eligibility or need help applying for the right benefits, reach out to Mehta & McConnell today for a free, no-commitment consultation. Let our team provide the clarity and support you need to move forward confidently.
Jason McConnell
Jason McConnell is the managing attorney of Mehta & McConnell Injury Lawyers, a Charlotte, North Carolina Workers’ Compensation law firm. In his free time he enjoys playing golf, cooking, traveling and following the UNC Tar Heels and Carolina Panthers.
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