Yes, you can potentially receive workers' comp and long-term disability at the same time. However, your LTD policy may reduce its payments based on the workers' compensation benefits you receive.
At Hawks Quindel, S.C., our attorneys help Wisconsin workers coordinate workers' compensation benefits and long-term disability insurance (LTDI) claims when an injury prevents them from working. The interaction becomes especially important when a workers' comp case settles. A settlement can affect how an LTD insurer calculates future benefits, so the disability policy should be reviewed before the workers' compensation settlement is finalized.
Securing Disability Benefits Rightfully Owed to Wisconsin Workers
How Does Workers' Comp Affect Long-Term Disability Benefits?
Workers' compensation and long-term disability are separate benefit systems. Wisconsin workers' compensation provides benefits for qualifying work-related injuries and occupational diseases. Long-Term Disability (LTD) coverage generally comes from an employer-sponsored or individually purchased disability insurance policy and pays benefits when you satisfy the policy's definition of disability.
Because they are separate programs, qualifying for workers' compensation does not automatically establish eligibility for LTD, or vice versa. However, LTD policies frequently contain other income or offset provisions.
An offset allows the insurer to reduce the LTD payment by the income the claimant receives from another source identified in the policy. Workers' compensation is commonly among the benefits addressed by these provisions.
The policy language controls. Before assuming how workers' comp will affect LTD benefits, review provisions addressing:
- Other income or deductible sources of income.
- Workers' compensation benefits.
- Lump-sum payments or settlements.
- Minimum monthly LTD benefits.
- Overpayments and reimbursement.
Some policies preserve a minimum monthly LTD benefit even when offsets would otherwise substantially reduce the payment. Others contain different methods for calculating deductible income.
How Does a Workers' Comp and LTD Offset Work?
An offset generally reduces the amount paid by the LTD plan rather than making the worker ineligible for both programs. Consider this simplified example.
Assume an LTD policy provides a $4,000 monthly benefit before offsets, and the worker receives $2,000 per month in workers' compensation. If the LTD policy allows the entire workers' compensation payment to be deducted, the insurer could reduce the LTD payment from $4,000 to $2,000.
The worker would still receive benefits from both sources, but not $6,000 in combined monthly payments. Actual calculations can be considerably more complicated. Policy language, the type of workers' compensation benefit, minimum-benefit provisions, and other income can change the result.
That is why the important question is not simply, "Can I receive both?" It is also, "How does my LTD policy treat the workers' compensation benefits I am receiving?"
Be sure to read our Wisconsin Workers’ Compensation and Long-Term Disability Insurance resources, which explain the two benefit systems in greater detail.
What Happens to LTD When a Workers' Comp Case Settles?
This is where coordination becomes especially important. While a workers' compensation claim remains open, a worker may receive periodic benefits that are relatively straightforward for an LTD insurer to identify. A workers’ compensation settlement can replace some disputed or future workers’ compensation obligations with a lump-sum payment.
Receiving the money in a lump sum does not necessarily eliminate the LTD offset. The LTD insurer may examine the settlement agreement and its own policy to determine what portion of the settlement constitutes deductible income and how that amount should be applied against LTD benefits.
The answer can depend on what the workers' compensation settlement actually resolves. For example, a settlement may address different categories of disputed benefits or obligations. The LTD policy may contain specific rules governing lump-sum workers' compensation payments and how the insurer allocates those payments over time.
That means a workers' comp settlement that looks favorable on its own can have additional consequences when an LTD claim is considered. We can review your situation and explain how LTD may impact the settlement outcome.
We Can Review the LTD Policy Before Finalizing the Settlement
Ideally, the interaction should be investigated before the workers' compensation settlement is signed, not after the LTD insurer reduces benefits. Our attorneys can review questions such as:
- Does the LTD policy treat workers' compensation settlements as deductible income?
- How does the policy address lump-sum payments?
- Does it distinguish among different components of a settlement?
- Over what period can the insurer allocate a lump sum?
- Could the settlement create or change an LTD overpayment?
The answers come from the specific disability policy and settlement, not a universal formula.
Once a workers' compensation agreement has been finalized, changing its terms may be difficult or impossible. Understanding the consequences of LTD in advance provides an opportunity to address both claims as part of the worker's overall financial situation.
The Language in a Workers' Comp Settlement Matters
An LTD insurer generally looks beyond the fact that a settlement occurred. It may also look at what the agreement says the settlement represents.
Some LTD policies contain detailed provisions governing lump-sum workers' compensation awards. Depending on the policy, the insurer may determine how much of the settlement constitutes disability income and how that amount should be spread across future months.
Settlement language should accurately reflect what the workers' compensation payment resolves. It should not be manipulated simply to avoid a legitimate LTD offset. But that does not mean the LTD consequences should be ignored.
Before settlement, our attorneys can compare the proposed workers' compensation agreement with the LTD policy's offset provisions. When legitimate components of the workers' compensation resolution are treated differently under the LTD policy, accurately documenting what the settlement resolves can become important.
This is one reason workers should avoid viewing a workers' compensation settlement as an isolated transaction when they also receive LTD.
Why Should You Coordinate Workers' Comp and LTD Claims Before Settling?
Workers' compensation and LTD claims ask different legal questions, but decisions in one can affect the other. A workers' compensation attorney focused only on resolving the comp claim might not know how the claimant's LTD policy treats the proposed settlement. Likewise, someone handling only the disability claim may not fully understand the workers' compensation benefits being resolved.
At Hawks Quindel, S.C., we handle both workers' compensation and long-term disability claims. That allows our attorneys to examine how the claims interact rather than treating each one as if the other did not exist.
Depending on the circumstances, that can involve reviewing the LTD plan before a comp settlement, determining how workers' compensation benefits affect LTD payments, identifying potential reimbursement issues, and considering how permanent work restrictions affect both claims.
Coordination also matters when an injury leaves someone unable to return to a longtime occupation. Workers’ compensation may involve permanent disability or loss-of-earning-capacity issues, while the LTD policy may separately determine whether the worker satisfies an own-occupation or any-occupation disability standard.
Neither system replaces the other. Our goal is to understand how each one affects the worker before irreversible decisions are made.
Hear From Our Clients
“happy with our settlement”
Bill Parsons and Brook Tylka and the rest of the staff from Hawks Quindel were very helpful with our case. They kept me up to date on the progress of my claim from the very beginning. After our first conciliation, we felt very confident we had the right attorney to...
“a practice someone can trust”
Hawks and Quindel are an amazing law firm to deal with. It’s a scary time and everyone there puts you at rest that they have your best interest at heart. They never make you feel like you are bothering them and they kept me in the loop with answers before...
“thoroughness, patience, and insight”
I can’t praise Aaron Halstead and Connor Clegg enough for their work on my legal matter. I especially appreciated their thoroughness, patience, and insight. They were always responsive to my questions. They helped me navigate a challenging workplace issue and obtain a good outcome. I would and do recommend them.
“highly recommend seeking the services of this firm”
During this very difficult time, the staff at Hawks and Quindel kept me reassured and informed every step of the way. I had the pleasure of working with Attorneys Jessa Victor and Brook Tylka. Jessa, Brook, Matt, and Hadley, thank you for all of your hard work, professionalism and compassion!...
“my case was won”
From our first phone call with Donnie Malchow, we knew we'd found the right person to help us. I had filed for disability and been denied. He was willing to walk beside us and thoroughly explain the entire process (lasted over a year and a half) and expectations (gave us...
“I would wholeheartedly recommend HQ”
I had another law firm representing me on a non-compete, and when it became clear that I needed new representation, I reached out to Hawks Quindel. Aaron Bibb took my case and he represented me extremely well to an agreeable resolution of the case, and costs were extremely reasonable and...
“went above and beyond”
Attorney Halstead and his team went above and beyond to not only win my case, but because of certain circumstances I had going on, they did everything they could to help and rush the settlement through. They were always quick at responding to emails and phone calls with questions I...
“I highly suggest this firm”
I can't imagine using any other firm after having Hawks Quindel, they were so knowledgeable and experienced but yet so down to earth to talk with. They kept me informed every step of the way and always answered when I had a question. What a staff, so many great people,...
“empathy, intelligence, and professionalism”
I reside in New Mexico but drove a semi-truck coast to coast for an unscrupulous trucking company out of Wisconsin. This logistics company harassed, bullied lied and discriminated against me, keeping my earned wages, and leaving me in a financial hole. Devastated I called and left a message for the...
“people treat you like family”
Top notch law firm Jacob and Natalie were my 2 attorneys that represented me on both of my cases? They did a fantastic job. Speaking up for me as they do for thousands of people and especially the little guys down-to-earth, people treat you like family, these people are godsons.
“Way beyond my expectations”
Many thanks from my family to all of you at the firm!!! Hawks Quindel, S.C. is the only place I would consider for LTD, disability, SSDI, ERISA, EEOC, DRoW legal help!! Jessa Victor and her team got me all the answers and results when I didn't think it was possible!!!...
“His team were patient and professional”
I had the pleasure of being represented by Aaron N. Halstead, Shareholder, on my discrimination case. His team were patient and professional. I would highly recommend this firm for the professionalism and efficiency for working through my case.
“If there were 10 stars”
If there were 10 stars I would give them that. There are not enough words to express my gratitude for Aaron, Ben and their team. I felt strong with them behind me. Exceeded expectations is an understatement.
“wonderful to work with”
I had mauve she was wonderful to work with! She helped me with my long battle to get SSI and SSDI. Which thankfully I now have! She's a delight and really helps boost anyone's confidents.
“Extremely knowledgeable”
I had an incredible experience regarding my workers compensation case with Jakob Feltham! It was my first workers compensation case (*or first case ever), and I didn't know anything about the legalities surrounding my issue, or what I was entitled to? Jake Feltham had ALL my answers, and made it...
“I’m happy with the work they did”
They were extremely responsive and good at communication throughout the process. They were accommodating of my disability and explained things well, taking time to answer all my questions. I'm happy with the work they did. Felt like I really had people on my side during a confusing and difficult time.
“consistently responsive and professional”
My recent experience with Hawk Quindel, and in particular with John Leppanen in the Milwaukee office. He, was extremely valuable. The support/intake staff responded quickly to my initial inquiry, and John was responsive and made time soon after our initial contact to begin work on my case. John was able...
“the best lawyers, trustworthy”
Excellent people, the best lawyers, trustworthy, always seeking the best results in the shortest possible time. I highly recommend them.
“Very Helpful”
Eze the intake coordinator was awesome, very helpful and connected me with the right people to help with my situation! Thank you Eze!
“Had My Back”
In 2010, I returned home from my second deployment. In 2012, I was told by the VA I couldn’t return to the job I was working at. It is now 2019, and through 7 years of needing legal representation, Hawks had my back through 3 separate issues: short term disability,...
“Best Decision”
I really don’t know how to put this in words to express how happy, satisfied, and really just overwhelmed with a sense of justice being handed out on my behalf. This big corporate work comp insurer treated me wrong, but before I decided to give up I contacted Hawks Quindel,...
“Highly Recommend”
The attorneys at Hawks Quindel worked tirelessly on my behalf. They were transparent at every step of the way, and answered any questions I had directly and in ways that someone without a legal background could easily understand. Although I would highly recommend them to anyone who is potentially facing...
Can a Workers' Comp Settlement Reduce Future LTD Benefits?
It can, depending on the LTD policy. Do not assume that converting periodic workers' compensation benefits into a lump-sum settlement automatically ends the offset. An LTD policy may provide a method for converting a lump sum into a monthly amount or otherwise determining the portion considered deductible income.
The insurer may also assert that prior LTD payments should have been reduced because of workers' compensation benefits. This can result in a claimed overpayment that the insurer seeks to recover from future benefits or settlement proceeds.
When an insurer asserts an overpayment, the amount should not simply be assumed correct. The policy language, workers' compensation payment history, dates, calculations, and other relevant records should be reviewed to ensure the overpayment is correct.
What If You Also Receive Social Security Disability Insurance?
Some workers ultimately have three overlapping claims: workers' compensation, private LTD, and Social Security Disability Insurance (SSDI). That introduces another set of offsets.
According to the Social Security Administration, workers' compensation can reduce SSDI when the combined amount of SSDI and workers' compensation, or certain public disability benefits, exceeds the applicable limit, which is generally 80% of the worker's average current earnings. The rule can apply to periodic workers' compensation payments and certain lump-sum settlements.
Private disability insurance works differently. SSA states that disability payments from private sources, including private insurance benefits, do not themselves reduce SSDI.
The LTD policy, however, may separately treat SSDI as deductible income. If the LTD insurer has been paying benefits while an SSDI application is pending, a later retroactive SSDI award can create an LTD overpayment under the policy. Someone receiving all three benefits may therefore face offsets operating in different directions:
Workers' comp may affect SSDI, while workers' comp and SSDI may separately affect LTD under the disability policy. Our Social Security Disability lawyers can explain SSDI eligibility and benefits in more detail.
How Can the Team at Hawks Quindel, S.C. Help With Overlapping Disability Claims?
The greatest value in these cases often comes from identifying the interaction before a settlement, appeal, or other major decision is final. Depending on your circumstances, our attorneys can:
- Review workers' compensation and LTD benefits together.
- Analyze the LTD policy's other-income and offset provisions.
- Determine how a proposed workers' comp settlement may affect LTD payments.
- Review claimed LTD overpayments and reimbursement demands.
- Coordinate workers' compensation, LTD, and SSDI issues when multiple claims overlap.
We can also pursue disputed claims through the appropriate process rather than stopping after an initial application or denial.
At Hawks Quindel, S.C., we have represented Wisconsin workers for more than 60 years, and our team includes attorneys who handle workers' compensation, long-term disability, and Social Security disability matters. That cross-practice experience is particularly useful when one benefit decision can change another.
Hear From Our Clients
“happy with our settlement”
Bill Parsons and Brook Tylka and the rest of the staff from Hawks Quindel were very helpful with our case. They kept me up to date on the progress of my claim from the very beginning. After our first conciliation, we felt very confident we had the right attorney to...
“a practice someone can trust”
Hawks and Quindel are an amazing law firm to deal with. It’s a scary time and everyone there puts you at rest that they have your best interest at heart. They never make you feel like you are bothering them and they kept me in the loop with answers before...
“thoroughness, patience, and insight”
I can’t praise Aaron Halstead and Connor Clegg enough for their work on my legal matter. I especially appreciated their thoroughness, patience, and insight. They were always responsive to my questions. They helped me navigate a challenging workplace issue and obtain a good outcome. I would and do recommend them.
“highly recommend seeking the services of this firm”
During this very difficult time, the staff at Hawks and Quindel kept me reassured and informed every step of the way. I had the pleasure of working with Attorneys Jessa Victor and Brook Tylka. Jessa, Brook, Matt, and Hadley, thank you for all of your hard work, professionalism and compassion!...
“my case was won”
From our first phone call with Donnie Malchow, we knew we'd found the right person to help us. I had filed for disability and been denied. He was willing to walk beside us and thoroughly explain the entire process (lasted over a year and a half) and expectations (gave us...
“I would wholeheartedly recommend HQ”
I had another law firm representing me on a non-compete, and when it became clear that I needed new representation, I reached out to Hawks Quindel. Aaron Bibb took my case and he represented me extremely well to an agreeable resolution of the case, and costs were extremely reasonable and...
“went above and beyond”
Attorney Halstead and his team went above and beyond to not only win my case, but because of certain circumstances I had going on, they did everything they could to help and rush the settlement through. They were always quick at responding to emails and phone calls with questions I...
“I highly suggest this firm”
I can't imagine using any other firm after having Hawks Quindel, they were so knowledgeable and experienced but yet so down to earth to talk with. They kept me informed every step of the way and always answered when I had a question. What a staff, so many great people,...
“empathy, intelligence, and professionalism”
I reside in New Mexico but drove a semi-truck coast to coast for an unscrupulous trucking company out of Wisconsin. This logistics company harassed, bullied lied and discriminated against me, keeping my earned wages, and leaving me in a financial hole. Devastated I called and left a message for the...
“people treat you like family”
Top notch law firm Jacob and Natalie were my 2 attorneys that represented me on both of my cases? They did a fantastic job. Speaking up for me as they do for thousands of people and especially the little guys down-to-earth, people treat you like family, these people are godsons.
“Way beyond my expectations”
Many thanks from my family to all of you at the firm!!! Hawks Quindel, S.C. is the only place I would consider for LTD, disability, SSDI, ERISA, EEOC, DRoW legal help!! Jessa Victor and her team got me all the answers and results when I didn't think it was possible!!!...
“His team were patient and professional”
I had the pleasure of being represented by Aaron N. Halstead, Shareholder, on my discrimination case. His team were patient and professional. I would highly recommend this firm for the professionalism and efficiency for working through my case.
“If there were 10 stars”
If there were 10 stars I would give them that. There are not enough words to express my gratitude for Aaron, Ben and their team. I felt strong with them behind me. Exceeded expectations is an understatement.
“wonderful to work with”
I had mauve she was wonderful to work with! She helped me with my long battle to get SSI and SSDI. Which thankfully I now have! She's a delight and really helps boost anyone's confidents.
“Extremely knowledgeable”
I had an incredible experience regarding my workers compensation case with Jakob Feltham! It was my first workers compensation case (*or first case ever), and I didn't know anything about the legalities surrounding my issue, or what I was entitled to? Jake Feltham had ALL my answers, and made it...
“I’m happy with the work they did”
They were extremely responsive and good at communication throughout the process. They were accommodating of my disability and explained things well, taking time to answer all my questions. I'm happy with the work they did. Felt like I really had people on my side during a confusing and difficult time.
“consistently responsive and professional”
My recent experience with Hawk Quindel, and in particular with John Leppanen in the Milwaukee office. He, was extremely valuable. The support/intake staff responded quickly to my initial inquiry, and John was responsive and made time soon after our initial contact to begin work on my case. John was able...
“the best lawyers, trustworthy”
Excellent people, the best lawyers, trustworthy, always seeking the best results in the shortest possible time. I highly recommend them.
“Very Helpful”
Eze the intake coordinator was awesome, very helpful and connected me with the right people to help with my situation! Thank you Eze!
“Had My Back”
In 2010, I returned home from my second deployment. In 2012, I was told by the VA I couldn’t return to the job I was working at. It is now 2019, and through 7 years of needing legal representation, Hawks had my back through 3 separate issues: short term disability,...
“Best Decision”
I really don’t know how to put this in words to express how happy, satisfied, and really just overwhelmed with a sense of justice being handed out on my behalf. This big corporate work comp insurer treated me wrong, but before I decided to give up I contacted Hawks Quindel,...
“Highly Recommend”
The attorneys at Hawks Quindel worked tirelessly on my behalf. They were transparent at every step of the way, and answered any questions I had directly and in ways that someone without a legal background could easily understand. Although I would highly recommend them to anyone who is potentially facing...
Frequently Asked Questions About Workers' Comp and LTD
Does workers' comp always reduce long-term disability benefits?
No universal rule applies to every LTD policy. Many policies treat workers' compensation as deductible income, but the policy determines whether an offset applies and how it is calculated.
Will settling my workers' comp case stop my LTD benefits?
Not necessarily. However, an LTD insurer may treat some or all of a workers' compensation settlement as deductible income according to the policy's terms. Review the LTD policy before finalizing the settlement.
Can an LTD insurer claim part of my workers' comp settlement?
An LTD insurer may assert offset or reimbursement rights if the disability policy provides them. Whether the insurer's calculation is correct depends on the policy language, payments, settlement, and other facts.
Can I receive workers' comp, LTD, and SSDI at the same time?
Potentially. Each program has separate eligibility requirements, and offsets can affect the amounts ultimately paid. SSA may reduce SSDI benefits under its offset rules due to workers' compensation, while an LTD policy may separately reduce benefits based on workers' compensation or SSDI.
Should my LTD policy be reviewed before I settle a workers' comp claim?
Yes, if you receive or are pursuing LTD benefits. Reviewing the policy beforehand can identify how it treats workers' compensation settlements, lump-sum payments, offsets, and potential overpayments before the comp agreement becomes final.
Talk to the Workers’ Comp Team at Hawks Quindel, S.C. About Coordinating Your Workers' Comp and LTD Claims
Receiving more than one disability benefit can provide critical financial support when an injury prevents you from working, but overlapping claims can also create unexpected offsets and reimbursement disputes. A workers' compensation settlement is particularly important because decisions made in that claim can affect LTD benefits afterward.
The attorneys at Hawks Quindel, S.C. can review how your workers' compensation, long-term disability, and, when applicable, SSDI claims interact. We protect employees and individuals, not employers or insurance companies.
Contact Hawks Quindel, S.C. to begin the legal process and learn whether your matter qualifies for a free case screening. Call our Madison office at 608-257-0040 or our Milwaukee office at 414-271-8650, or fill out our confidential contact form.