Can I Receive Workers’ Compensation and Social Security Disability?

Yes, you can receive both workers’ compensation and Social Security Disability Insurance (SSDI) at the same time. Many injured workers in Chicago, from construction workers near the Chicago Riverwalk to factory employees in the Pilsen industrial corridor, find themselves unable to return to work after a serious injury. Understanding how these two benefit programs work together, and where they differ, can make a real difference in your financial recovery. The attorneys at Chicago personal injury lawyer firm Briskman Briskman & Greenberg help injured workers pursue every dollar they are entitled to under Illinois and federal law.

Table of Contents

• How Illinois Workers’ Compensation and SSDI Are Two Separate Programs
• What You Must Prove to Qualify for SSDI Benefits in 2026
• The SSDI Offset Rule: How Workers’ Comp Affects Your SSDI Payment
• How Illinois Workers’ Compensation Benefits Are Calculated Under 820 ILCS 305
• Reporting Requirements and Lump Sum Settlements When Receiving Both Benefits
• Why Injured Chicago Workers Should Pursue Both Claims Simultaneously
• FAQs About Workers’ Compensation and Social Security Disability in Chicago

How Illinois Workers’ Compensation and SSDI Are Two Separate Programs

Workers’ compensation and SSDI come from completely different legal sources and serve different purposes. Knowing the difference matters because qualifying for one does not automatically qualify you for the other.

In Illinois, workers’ compensation is governed by the Illinois Workers’ Compensation Act, 820 ILCS 305. This state law requires most employers to carry workers’ compensation insurance. It covers injuries and illnesses that arise out of and in the course of employment. Benefits include payment of medical expenses, wage replacement, and compensation for permanent disability. Workers’ compensation provides benefits for both short-term and long-term disabilities and for partial as well as total disabilities, but these benefits cover only disabilities arising out of and in the course of employment.

SSDI, by contrast, is a federal program. Social Security disability benefits are paid only to workers who have long-term impairments that preclude any gainful work, regardless of whether the disability arose on or off the job. The Social Security Administration (SSA) administers SSDI under Title II of the Social Security Act.

Workers are eligible for workers’ compensation benefits from their first day of employment, but Social Security disability benefits are paid only to workers who have a substantial work history. This is a critical distinction. An injured warehouse worker on the Far South Side of Chicago could be eligible for workers’ comp immediately after a forklift accident, but SSDI requires a history of paying into Social Security through payroll taxes.

Because workers’ comp and Social Security’s definitions of disability are so different, the fact that you were approved for workers’ comp will not help you get approved for Social Security disability. Each program evaluates your condition on its own terms. You must meet the eligibility standards for each one independently.

What You Must Prove to Qualify for SSDI Benefits in 2026

SSDI approval is not automatic, even for workers with serious injuries. The SSA uses a strict, five-step evaluation process to decide whether you qualify.

To meet the statutory definition of disability, a worker must be unable to engage in any substantial gainful activity (SGA) due to any medically determinable physical or mental impairment that is expected to result in death or has lasted, or is expected to last, for at least 12 consecutive months. This is a high bar. Partial disability is not enough for SSDI.

If you continue to work, your condition must also limit you from earning income above an amount called “substantial gainful activity” (SGA). In 2026, SGA is $1,690 per month, or $2,830 if you are considered blind under SSA rules. If you earn more than these amounts, the SSA will generally deny your claim regardless of your medical condition.

You also need enough work credits. In 2026, you earn one credit for each $1,890 in wages or self-employment income. When you have earned $7,560, you have earned your four credits for the year. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year your disability begins.

In general, workers must have severe impairments that prevent them from doing any substantial work that exists in significant numbers in the national economy, taking into consideration their age, education, and work experience. The SSA looks at whether you can return to your old job and whether you can perform any other type of work. A roofer in Rogers Park who suffers a severe spinal cord injury may not be able to perform physical labor, but the SSA will still ask whether desk work is possible.

Most people are eligible for Medicare insurance coverage after 24 months of receiving Social Security Disability Insurance payments. This Medicare eligibility is one of the most significant long-term benefits of qualifying for SSDI alongside your workers’ compensation claim.

The SSDI Offset Rule: How Workers’ Comp Affects Your SSDI Payment

Receiving both benefits at the same time is allowed, but the combined amount you receive is capped. This cap is enforced through a rule called the workers’ compensation offset.

The Social Security Administration applies an offset when the combined total of your workers’ compensation and SSDI benefits is more than 80% of your average current earnings (ACE) before the disability. This 80% threshold is called the applicable limit. The goal is to prevent a disabled worker from collecting more in benefits than they earned while working.

If your combined earnings are more than 80%, the SSA will reduce your SSDI benefit to bring the total below 80%. This offset applies only to the SSDI benefit. The workers’ compensation benefits stay the same. So if you were earning $5,000 per month before your injury, your applicable limit would be $4,000. If your workers’ comp check is $2,500 and your SSDI payment would be $2,000, the combined $4,500 exceeds the limit. The SSA would reduce your SSDI payment to $1,500 to bring the total to exactly $4,000.

Illinois does not use a reverse offset. A reverse offset is a state-level rule that reduces workers’ compensation instead of SSDI when the combined total exceeds the limit. A 1981 federal law eliminated the states’ option to adopt reverse offset laws. However, 14 states already had such laws in place and were exempted from the 1981 law, allowing them to keep the reverse offsets. Illinois is not among those states, so the federal offset applies here, meaning your SSDI benefit is the one that gets reduced.

One important tool available in Illinois is “spreading language” in workers’ compensation settlement agreements. Illinois law reduces the effect of the federal Social Security offset by allowing lump sum settlements in permanent total disability or permanent partial disability cases to be paid over the life expectancy of the injured claimant. This provision is contained in Public Act 91-757 of the 1999-2000 General Assembly. Structuring your settlement this way can lower the monthly amount the SSA counts against your SSDI benefit, keeping more money in your pocket each month.

How Illinois Workers’ Compensation Benefits Are Calculated Under 820 ILCS 305

Understanding what your Illinois workers’ compensation benefits are worth helps you plan for how the SSDI offset will affect your total income. The Illinois Workers’ Compensation Act, 820 ILCS 305, sets the formulas for calculating your benefits.

Under Section 8(b) of the Illinois Workers’ Compensation Act, the compensation rate for temporary total disability (TTD) is equal to 66 2/3% of your average weekly wage, subject to minimum and maximum limits tied to the state and federal minimum wage. TTD applies when you are completely unable to work while recovering. An electrician in Wicker Park who cannot work at all while healing from a severe arm injury would receive TTD payments during that period.

If you return to work at a lower-paying job because of your injury, you may qualify for wage differential benefits. Under 820 ILCS 305/8(d)(1), if you become partially incapacitated from your usual line of employment, you receive 66 2/3% of the difference between what you earned before the injury and what you are now able to earn. For injuries occurring on or after September 1, 2011, wage differential awards remain in effect until you reach age 67 or for five years from the date the award becomes final, whichever is later.

For permanent partial disability (PPD) under 820 ILCS 305/8(d)(2), the compensation rate is 60% of your average weekly wage. This type of benefit applies when your injury leaves you with a lasting impairment but you are not completely unable to work. A steelworker near the old Republic Steel site on the Southeast Side who loses partial use of a hand would typically receive PPD benefits.

Workers suffering from occupational diseases, such as respiratory conditions from chemical exposure or hearing loss from industrial noise, may also file under the Workers’ Occupational Diseases Act, 820 ILCS 310. Under 820 ILCS 310/2, employers covered by the Workers’ Compensation Act are automatically bound by the Occupational Diseases Act as well. If you have an occupational disease and also meet SSDI’s long-term disability standard, you may be entitled to both streams of benefits simultaneously.

Reporting Requirements and Lump Sum Settlements When Receiving Both Benefits

If you receive both workers’ compensation and SSDI, you have ongoing legal obligations to the SSA. Failing to meet them can result in serious financial consequences.

The Social Security Administration requires you to report changes in the amount of any disability payments you receive in addition to SSDI, including workers’ compensation. You must also report any new workers’ compensation settlements to the SSA. This applies whether you receive a weekly payment or a lump sum.

If the SSA discovers you have been receiving both workers’ compensation and SSDI benefits without reporting it, it may require you to repay any overpaid SSDI benefits. You may also have to pay penalty and interest fees on the overpaid amount. Additionally, hiding your workers’ compensation benefits from the SSA may result in suspension or termination of your SSDI benefits.

Lump sum settlements require special attention. Social Security will offset SSDI benefits to account for a lump sum settlement. Social Security has several ways of converting a lump sum workers’ comp payment into a monthly benefit for the purposes of calculating an offset, and it will take a close look at the language of the settlement document. This is why the language in your settlement agreement matters enormously. A properly drafted agreement that spreads the lump sum over your life expectancy, as allowed under Illinois Public Act 91-757, can significantly reduce the monthly amount the SSA counts as workers’ compensation income.

Under 820 ILCS 310/9, either an employer or employee may petition the Illinois Workers’ Compensation Commission to have compensation paid in a lump sum. The Commission may order a commutation to a lump sum equal to the total probable future payments at their present value, calculated at 3% interest per annum. In cases of complete disability, the Commission will not entertain a lump sum petition until at least six months after the date of disablement. Coordinating this process with your SSDI claim requires careful planning. A knowledgeable workers’ compensation lawyer can help you structure your settlement in a way that protects both your workers’ comp recovery and your SSDI payments.

Why Injured Chicago Workers Should Pursue Both Claims Simultaneously

Waiting to file one claim while the other is pending is a common mistake. Both claims should be filed as soon as possible after your injury or the onset of your disabling condition.

Workers’ compensation claims in Illinois must be filed with the Illinois Workers’ Compensation Commission. SSDI applications go to the Social Security Administration. These are entirely separate processes with separate deadlines and separate decision-makers. A delay in filing your SSDI claim can cost you months of back pay, since SSDI benefits do not begin until five full months after the onset of your disability, and the SSA counts back only to your application date when calculating back pay.

Pursuing both claims together also gives you the most complete financial picture. Workers’ compensation covers your medical bills and a portion of your lost wages under 820 ILCS 305. SSDI provides a separate monthly income stream based on your lifetime earnings record. Together, they can provide more stability than either program alone, even after the offset is applied.

Workers throughout the Chicago area, from nurses at Cook County Health facilities to sanitation workers on the North Side, face long recovery periods after serious workplace injuries. During that time, bills do not stop. Rent near Wrigleyville, mortgage payments in Beverly, or car payments for a commute down I-290 all continue. Pursuing both benefits at the same time keeps more money coming in while you focus on recovery.

The attorneys at Briskman Briskman & Greenberg have handled workers’ compensation claims for injured workers across the Chicago area for decades. Whether your injury happened on a construction site near Millennium Park, in a warehouse in the West Loop, or on a factory floor in Cicero, we are ready to help you pursue every benefit you deserve. A workers’ compensation lawyer from our firm can review your situation and help you understand how both claims interact. We also serve workers in the south suburbs and the greater Chicagoland area. If you were hurt on the job and need guidance, contact Briskman Briskman & Greenberg at (312) 222-0010 today.

Injured workers in the southwest suburbs can also reach a workers’ compensation lawyer at our Oak Lawn office, while those in the south suburbs near Orland Park can speak with a workers’ compensation lawyer at our Orland Park location. Workers in central Illinois can connect with a workers’ compensation lawyer at our Peoria office. No matter where you are in Illinois, Briskman Briskman & Greenberg is here to help.

FAQs About Workers’ Compensation and Social Security Disability in Chicago

Can I receive workers’ compensation and SSDI at the same time in Illinois?

Yes. Illinois workers can receive both workers’ compensation under the Illinois Workers’ Compensation Act, 820 ILCS 305, and SSDI under federal law at the same time. However, the SSA will apply an offset if your combined benefits exceed 80% of your average pre-disability earnings. The offset reduces your SSDI payment, not your workers’ compensation benefit.

Does getting approved for workers’ compensation help me get approved for SSDI?

No. Workers’ compensation approval does not carry any weight in an SSDI application. The two programs use completely different definitions of disability. Workers’ compensation covers partial and total disabilities from work-related injuries. SSDI requires a total inability to perform any substantial gainful work for at least 12 months, regardless of how the disability occurred. You must meet each program’s standards independently.

How does a lump sum workers’ compensation settlement affect my SSDI benefits?

A lump sum settlement can trigger an SSDI offset. The SSA converts the lump sum into a monthly equivalent and applies the offset for the number of months that amount represents. Illinois law, through Public Act 91-757, allows settlement agreements to include language that spreads the lump sum over your life expectancy. This reduces the monthly amount the SSA counts, which can significantly lower the offset and protect your SSDI payments. The specific language in your settlement document matters greatly, which is why having an experienced attorney draft it is important.

What happens if I forget to report my workers’ compensation benefits to the SSA?

Failing to report workers’ compensation payments to the SSA is a serious problem. The SSA requires you to report all disability payments, including workers’ compensation, and any new settlements. If the SSA finds you received more SSDI than you were entitled to, it will demand repayment of the overpaid amount, and it may also charge penalty and interest fees. In some cases, it can suspend or terminate your SSDI benefits entirely.

How long will the SSDI offset last if I am also receiving workers’ compensation?

The SSDI offset continues for as long as you are receiving workers’ compensation payments. If you receive a monthly workers’ compensation benefit, the offset applies each month you receive it. If you received a lump sum, the SSA calculates how many months that lump sum represents and applies the offset for that period. The offset stops when your workers’ compensation benefits are exhausted or when you reach age 65, whichever comes first. At age 65, SSDI benefits automatically convert to Social Security retirement benefits and the offset no longer applies.

More Resources About Frequently Asked Questions

• Can I Be Fired for Filing a Workers’ Compensation Claim?
• What If My Employer Has No Workers’ Compensation Insurance?
• What If My Workers’ Compensation Claim Is Denied?
• Can I Sue My Employer for a Workplace Injury?
• How Long Do I Have to File a Workers’ Compensation Claim in Illinois?
• What Is My Chicago Workers’ Compensation Case Worth?
• How Long Does a Workers’ Compensation Claim Take?
• Do I Need a Workers’ Compensation Lawyer?
• What Happens If My Injury Gets Worse After I Return to Work?