In order to collect unemployment benefits the applicant must certify that they are ready, willing, and able to do some type of work. Nonetheless, we often recommend that our clients who are partially, but not 100% disabled, apply for unemployment benefits. The reason that they will be allowed to collect unemployment is because they are, in fact, able to do some type of light or restrictive duty even though they have a partial disability.
A problem can arise when someone collecting unemployment benefits is also attempting to collect Social Security Disability benefits or total disability benefits from Workers’ Compensation or another type of policy. This is because by collecting unemployment, one is claiming that they are able to work and cannot find a job. However, in order to collect Social Security Disability benefits or total disability benefits through Workers’ Compensation, you are claiming that you cannot perform any type of substantial gainful employment.
I do not believe there is any legal bar that automatically prevents an unemployment recipient from receiving Social Security Disability, per say. However, I know from experience that Social Security Judges do not like to hear that people who are claiming they cannot work are getting unemployment benefits. It raises creditability questions and makes for a difficult case.
Someone who is collecting total disability under the New York State Workers’ Compensation Law should never apply for unemployment benefits. In fact, doing so could be a violation of the fraud statute Section 114a of the New York State Workers’ Compensation Law.
We realize that injured people face tough financial times and it is important that you are aware of your rights to collect benefits under Workers’ Compensation, Social Security, and/or Unemployment Laws. If you are not sure what you should be collecting, feel free to call our office for a free consultation.