The Conflict Between Disability and Unemployment Claims

When you file for unemployment benefits, generally you are stating that you are willing and able to work, must be available for work, and be willing to accept a suitable job offer. Additionally, you must have lost your job through no fault of your own. 

When you file for disability benefits, the claimant is stating that they are unable to work due to a physical or mental impairment. The disability must be expected to last at least twelve months and/or be expected to end in death. Because of the apparent conflict between alleging that one is entitled to disability benefits from one program and telling another government program that one can work, it is hard, though not necessarily impossible, to claim benefits from both programs. 

There are cases where there is no conflict between receipt of unemployment compensation and an application for Social Security disability benefits. For example, a claimant who is available only for light work may legitimately receive unemployment compensation benefits, and if the claimant is age 55 or older, the claimant could be found disabled using rules from the Medical-Vocational Guidelines. Even though in most situations there is an apparent inconsistency between receipt of unemployment compensation and a claim for Social Security disability benefits that covers the same period, it is sometimes possible to argue that even though the claimant would have attempted work during the time he was receiving unemployment compensation benefits (which makes receipt of unemployment compensation benefits legitimate), in retrospect it appears that he would not have been able to sustain work (which provides the basis for the disability claim).

Courts generally view receipt of unemployment compensation as inconsistent with a claim for disability benefits, but they do not regard it as conclusive proof that a claimant is not disabled. When an Administrative Law Judge (ALJ) decision contains legal errors or is not supported by substantial evidence, receipt of unemployment benefits does not alone prevent a court from remanding a case for SSA to address the errors. Receipt of unemployment benefits, however, does not mean that a claimant is able to work. A desire to work likewise does not mean that a claimant can actually work. 

In addition, it is often uncertain whether we will find a person who applies for unemployment insurance benefits ultimately to be disabled under the rules, and the decision-making process can be quite lengthy. Therefore, it is SSA’s position that individuals need not choose between applying for unemployment insurance and Social Security disability benefits.

However, application for unemployment insurance benefits is evidence that the ALJ must consider together with all of the medical and other evidence. Often, the underlying circumstances will be of greater relevance than the mere application for and receipt of the benefits. 

Assistance is available for work incentives and employment support. Employment networks and State Vocational Rehabilitation agencies provide a wide variety of services to help people with disabilities to return to work, enter a new line of work, or work for the first time. You can get information about Social Security’s employment support provisions by calling 1-800-772-1213.