Collateral Offsets to Workers’ Compensation Benefits

If you get hurt at work, you might get money and help with medical bills. But the company might take away some of that money if you already get other benefits. They do this so you don’t get more money than you did before you got hurt. If an employee gets injured at work and also receives Social Security disability benefits, their workers’ compensation benefits may be reduced by the employer or insurance company. The reduction is made to ensure that the combined amount of workers’ compensation benefits and Social Security disability benefits doesn’t exceed 80% of the employee’s average weekly wage. This offset applies to various types of workers’ compensation benefits, and also to dependents’ benefits. It also includes additional benefits for those with permanent total disabilities, and is adjusted annually for cost of living increases. If the employee is also receiving Social Security retirement benefits, the retirement benefits will be the primary source of income and the workers’ compensation benefits will be supplemental. However, this offset doesn’t apply after the employee turns 70 years old. If the employee is paying their attorney fees from the workers’ compensation benefits, the amount they pay should be subtracted before applying the offset, as Social Security doesn’t consider attorney fees when calculating their offset. If you are getting workers’ compensation and Social Security benefits, your workers’ comp can be reduced by your Social Security. You need to fill out forms to authorize the release of this information. The workers’ comp can only be reduced from the time the employer finds out you are receiving Social Security benefits, and they can’t take more than the federal government would. If you are injured after 1974, you are guaranteed at least $20 per week in workers’ comp, unless the offset provisions apply. If you are receiving workers’ compensation benefits, you cannot also receive unemployment benefits. If you are getting both, the unemployment benefits are the main source of income, and the workers’ compensation benefits are just extra. Also, you can’t get a total of benefits that is more than what you would normally make from working. If you are getting benefits from multiple sources like your employer and Social Security, the total amount you get can’t be more than what you would usually make from working. This means that your workers’ compensation benefits might be reduced if you are getting benefits from other sources. If you got hurt before October 1, 1989, your workers’ compensation benefits might affect your Social Security disability. If your accident was after that date, your workers’ comp benefits might still affect your Social Security disability. If you get Social Security disability, it might reduce the amount of workers’ comp benefits you can get. But if you get Social Security retirement, it won’t affect your workers’ comp benefits. And if you’re getting PTD benefits after July 1, 1990, they’ll stop once you turn 62. Matthew D. Staver is a lawyer in Orlando who focuses on insurance cases, nonprofit and church law, and constitutional law. He is the editor of a legal publication about insurance cases. This article was written for the Workers’ Compensation section by David Mitchell, the chair, and Pamela L. Foels, the editor.

Source: https://www.floridabar.org/the-florida-bar-journal/collateral-offsets-to-workers-compensation-benefits/