Social Security Disability and the Workers’ Compensation Offset

If you are injured on the job and are subsequently awarded Social Security disability benefits, your Social Security disability benefits may be offset by any workers’ compensation benefits you receive. If you receive workers’ compensation benefits and Social Security disability benefits, the total amount of these benefits cannot exceed 80% of your average indexed earnings before you became disabled. If the total amount of these benefits exceeds 80% of your average indexed earnings, the excess amount will be deducted from your Social Security disability benefit. This is commonly known as a workers’ compensation ”offset.”

A workers’ compensation “offset” can be especially burdensome when your workers’ compensation claim is resolved with a lump-sum payment from your employer. In some instances, a lump-sum payment for a work related injury can affect your Social Security disability benefits for years. The good news is the harsh effect of the workers’ compensation “offset” can be mitigated, if not eliminated, by placing specific language in the Compromise Settlement Agreement that converts your lump sum payment into weekly payments over the remaining years of your life (this number of years being determined by N.C. Gen. Stat. Sec. 8-46).

If you or someone you know needs assistance navigating this difficult issue, please feel free to contact Campbell & Associates at (704) 333-0885 or https://campbellandassociateslaw.com.