Reviewed By: Personal Injury Team Last Updated: June 29, 2026
A debilitating injury at work has resulted in you saying goodbye to your job, undergoing recovery and treatment, and, on top of everything else, seeking compensation for the incident itself.
If you experienced a workplace injury, you may qualify for both workers’ compensation coverage and Social Security Disability Insurance (SSDI) benefits but there’s a catch. Taking a workers’ comp settlement may impact your SSDI benefits and not necessarily in a good way.
Keep reading as our workers’ comp lawyers near you guide you through SSDI benefits and their role within workers’ compensation.
How Does Social Security Disability and Workers’ Comp Affect One Another?
Workers’ compensation benefits and SSDI benefits are both payouts one receives from a workplace injury, but applying for both could become a potential detriment to the compensation you receive.
Upon applying and receiving workers’ compensation benefits, the SSA will examine your compensation, determining:
- If the workers’ comp payout came from a public settlement, and
- The amount of money you are set to receive to cover lost wages
Depending on the findings, the SSA could reduce your social security benefits, so you receive no more than 80% of your average wages as a whole.
It is possible, however, that instead of reducing your SSDI benefits, it may be divided over time by the number of years until you reach retirement age. Given all the nuances surrounding SSDI benefits and workers’ compensation, it becomes even more critical to work with an experienced workers’ comp lawyer to help you maximize your benefits and receive the compensation you deserve.
What is Social Security Disability Insurance?
According to the Social Security Administration (SSA), SSDI, or “disability,” is a program that provides monthly payments to people with disabilities that prevent them from working. Those eligible to apply for disability must meet two requirements: a disability or blindness AND enough work history.
What’s Considered Disability and What’s “Enough”?
Under the Social Security Administration, disability is considered when you have a condition that has affected your ability to work for a year or more or will result in death. Work history is deemed “enough” if you have worked for at least five of the last 10 years.
Once it is deemed that both requirements are met, SSDI benefits can come into play to help you offset the income lost due to your injury and the future income you would have made had the injury not occurred.
Here’s How a Workers’ Comp Lawyer Near You Can Help
When you choose to work with a workers’ comp lawyer at Hoffman Law Firm, we can help you develop a strategy to increase your benefits on both sides. Our team can review your agreement and determine which items to exclude from the lump-sum amount to maximize your SSDI benefits while still receiving monthly payments for those exclusions.
For example, excluding medical expenses from the lump sum in your workers’ comp agreement in order not to hinder the SSDI benefits.
Regardless of the solution or situation, our team of lawyers understands the legal language in workers’ comp settlements and can help you identify the best approach tailored to your circumstances.
Maximize Your Compensation with Help From Hoffman Law Firm
Navigating SSDI and workers’ compensation can be overwhelming and may result in you receiving less than you deserve.
That’s why we recommend you leave it to Hoffman.
With offices in Georgetown, SC, and Charleston, SC, our personal injury law firm supports accident victims throughout the Palmetto State. As the leading workers’ compensation lawyers in Charleston and Georgetown, we have established a reputation for success and exceptional service.
Schedule your free consultation today with a personal injury attorney in Charleston or Georgetown, SC, and we will take it from there.
Sources
- Social Security Administration (SSA) – Workers’ Comp Offsets: The official federal guide detailing how public disability payouts like workers’ compensation interact with Social Security Disability Insurance (SSDI) to cap combined monthly benefits at 80% of average current earnings.
- Social Security Handbook § 504 – Benefit Reductions: The regulatory protocol used by the federal government to compute offsets, structure proration rules for lump-sum settlements, and assess dependent family allocation modifications.
- South Carolina Workers’ Compensation Act (Title 42): The governing state legislative framework detailing how workplace settlements are organized, certified, and distributed through the South Carolina Workers’ Compensation Commission.
Learn More About Workers’ Compensation Claims in Charleston
- Ready to strategically structure your settlement to protect your disability payouts? Speak with an experienced local legal advocate about maximizing your total award at Hoffman Law Firm. We offer a client-first approach, so learn how our Contingency Fee Structure ($0 Upfront Fee) works—meaning you pay absolutely nothing unless we successfully win your case. Free consultation available.
Disclosure & Legal Disclaimer: This blog is for informational and educational purposes only and does not constitute legal, tax, or financial advice. Information regarding workers’ compensation, Social Security Disability Insurance (SSDI), eligibility requirements, and benefit offsets is provided for general awareness and may not reflect the most current federal or state regulations or apply to every individual situation.
SSDI eligibility, benefit calculations, and workers’ compensation offsets depend on specific facts, work history, medical documentation, settlement structure, and applicable Social Security Administration rules. Outcomes vary, and no results are guaranteed.
Reading this content does not create an attorney–client relationship. For advice specific to your situation, consult a qualified workers’ compensation or disability attorney.
